Sound Bites: Fedspeak Remain Dovish Despite Better Data as World Awaits US Elections
US Labor Department (Monday, 10/29): “The Labor Department is working hard on timely release of jobs data.”
Closure of New York exchanges due to Hurricane Sandy caused speculation that October non-farm payrolls and other labor data may be released after the Tuesday election.
Boston FRB President Rosengren (Thursday, 11/1): “QE3 should continue until unemployment falls to 7.25%; main rate at zero until unemployment falls to 6.5%.”
Rosengren commenting that QE3 has so far worked as expected, but easy policy should be kept to prevent tightening too quickly.
Atlanta FRB President Lockhart (Thursday, 11/1): “Post-Sandy rebuilding could be form of stimulus.”
The FRB branch president commenting in Tennessee.
San Francisco FRB President Williams (Friday, 11/2): “US needs to do all it can to avoid Japanese stagnation. Balance sheet losses wouldn’t impair Fed policy.”
President Williams joining the two other Fed presidents in supporting loose policy while recognizing the gradual recovery of the US economy.
German PM Merkel (Tuesday, 10/30): “Greece wasn’t a special topic at Berlin talks, will wait for Troika report on Greece.”
Germany continues to wait for the Troika report on Greece before releasing the next tranche of bailout funds as an estimated EUR 45 billion becomes due next month. Greece may also see a parliament refresh sometime next week.
IMF Managing Director Lagarde (Tuesday, 10/30): “Accommodative monetary policy may be necessary, as central banks are playing greater role. Europe lacks confidence among some investors.”
As the global economy and especially Europe faces another possible slowdown, officials continue to comment on how the problem may be resolved.
UK PM Cameron’s Spokesman (Wednesday, 10/31): “UK ideally wants cut in EU budget.”
The House of Commons rejected PM Cameron’s EU budget proposal as rebel conservative MPs joined Labour in calling for a reduction of the European Union’s budget. Vote is not binding on the UK government, but the loss may indicate the PM’s and the Conservative/Liberal Democrat coalition’s power is waning.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.