Monetary policy news covering interest rates, quantitative easing, central bank decisions, and money supply management.
Federal Reserve Chairman Kevin Warsh faces his first FOMC meeting on June 16-17 amid accelerating inflation and hawkish market expectations. Economists predict no rate cuts in 2026, while President Trump's public support for inflation reduces political pressure on Warsh.
The Bank of England is expected to keep its key interest rate unchanged at 3.75% at its Thursday meeting, diverging from the European Central Bank which raised rates to 2.25% last week. The Fed is also expected to hold rates steady at 3.5%-3.75% under new chair Kevin Warsh, as the Iran peace deal eases inflationary pressures.
The Reserve Bank of Australia is expected to pause its tightening cycle, keeping the cash rate at 4.35% at its upcoming meeting. This follows three consecutive rate hikes in 2026. Markets have reduced bets on further tightening as the economy softens, with focus on Governor Bullock's forward guidance.
A growing divergence in interest-rate outlooks is forcing emerging-market investors to reshuffle bets. Indonesia's central bank delivered an off-cycle rate hike to reverse a market selloff and support its currency, while policymakers in Hungary and Poland consider lowering borrowing costs after inflation fell short of estimates.
This commentary argues that the Federal Reserve must overcome fears of a 2019-style reserve scarcity to shrink its balance sheet. It contends that new Chair Kevin Warsh's goal of reducing the balance sheet to 2010 levels requires addressing the amount of reserves needed for smooth market function, citing expert views that the Fed is haunted by past mistakes.
This commentary argues that the Federal Reserve should reduce its communication and adopt a more restrained approach to explaining policy decisions. It contends that excessive transparency can distort markets and borrowing costs, drawing on Kevin Warsh's experience as a Fed governor during the 2008-09 crisis.
This commentary argues that central banks, including the Federal Reserve and Bank of England, are likely to maintain cautious monetary policy stances as the Iran war reaches 100 days, with the balance of risks between inflation and growth remaining uncertain. It suggests that officials across major currency jurisdictions will keep settings steady.
This commentary argues that Central Bank of Nigeria Governor Yemi Cardoso has achieved remarkable successes in stabilizing the Nigerian economy after inheriting a crisis-ridden institution. It contends that his orthodox monetary policies and commitment to transparency have earned global recognition, as evidenced by the Central Banking award for Central Bank of the Year.