Blogs

Cleveland Fed Pres. Loretta Mester – We will will need more support from fiscal side of things – Could see some improvement in 2nd half of year – At the Fed we are always looking to use our tools to support the economy

Signals the intention in a ITV interview The BOE governor Bailey signal an interview with ITV at the BOE is likely to increase government bond purchases.

That's a dangerous thing The market has enormous faith in central banks to pump up asset prices. As for Congress, that's a different story. Markets are souring today and there are plenty of reasons for that relating to the pandemic and the tough-to-explain huge bounce from the lows.

Comments from De Guindos in an online discussion: See here for global coronavirus case data

Powell asked about negative rates The negative rates comment boosted the dollar and sent a shudder through bonds and gold. In USD/JPY you can see the initial drop when he didn't mention negative rates in the formal speech and the reversal when the spoke about them in the Q&A:

Powell speaks with Adam Posen from the Peterson Institute: Powell's first point was that the Fed learned that it can keep rates low and let the unemployment rate fall to low levels without generating inflation.

Comments from Powell for the Peterson Institute There's no change in signals in the initial comments. The pledge to use the Fed's tools is right out of the FOMC statement.

Live stream of Powell starts at the top of the hour The Peterson Institute is streaming Powell live: See here for global coronavirus case data

ECB governing council member, Olli Rehn, remarks to the Finnish parliament – ECJ interprets legality of European institutions' actions, not national courts – Giving up this principle could have very negative consequences See here for global coronavirus case data

Reserve Bank of New Zealand Governor Orr (online) news conference following the monetary policy decision  – pleased with the effectiveness of the QE program RBNZ's Bascand also: