The Latest Breaking News from Monetary Policy

The dollar index (DXY00 ) today is up by +0.27%. The dollar today is moderately higher on weakness in the yen after the BOJ refrained from tightening monetary policy. Also, the weakness in stocks today has boosted some liquidity demand for the dollar. In addition, higher T-note yields today have...

Monetary Policy Committee votes to keep rates on hold

In 2023, central banks, which manage the monetary policy of a country, faced unprecedented financial losses – the US Federal Reserve alone reported a record US$114.3 billion (£86 billion) operating loss.

The federal opposition has torpedoed Treasurer Jim Chalmers’ attempt to get a bipartisan deal to install a specialist monetary policy board in the Reserve Bank, claiming the reform would enable the treasurer to “stack” the new board.

Jim Chalmers has acknowledged there's tension between fiscal and monetary policy, but argues the government and the central bank have the same objective.

The essence of the impossible trinity is that a country can successfully achieve only two of these goals at any one time.

The economic world recently turned its attention to the resort of Jackson Hole, in a remote Wyoming valley. The annual economic policy symposium of central bankers, policymakers, academics and financial gurus took place in this unlikely spot, producing outcomes that hold significant implications for economies worldwide.

Recent concerns about the unwinding of yen carry trades and its potential impact on financial markets have proven less disruptive than anticipated. Despite other countries raising interest rates to combat post-pandemic inflation, Japan has kept borrowing costs low to address its long-term economic stagnation. Although the Bank of Japan (BoJ)…

A growing chorus of central bankers and academics believe climate change does impact price stability—and this impact should be built into modeling.

Federal Reserve's monetary policy decisions, Quiet QE strategy, and high-yield corporate bonds present income opportunities for investors.

Trump stated that while he believes the president should be able to voice opinions on interest rates, he does not expect to dictate monetary policy. "It doesn't mean they have to listen, but I think it's fine for a president to talk," Trump said.