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Showing posts from November, 2023

Takeaways from the FED's MPC speech Nov 23'

FE D chair Powell gave the MPC speech on 1 Nov 23'. Here are some crucial points from his speech: On recent events:      >>>  Economic activity expanding at a fast rate - factors: surge in consumer spending. However, housing markets flat; business investments flatting out     >>> The labour  market is tight but is balancing out. Nominal wage growth balancing. Unemployment is low and job vacancies still exceed the supply but have overall declined      >>> I nflation is moderating but still above expectations; PCE rose 3.45 while core PCE was at 3.7%;  Longer-term inflation seems well-anchored     >>> Tighness in labour market may lead to further tightening of monetary policy     >>> Rise in long-term yields has effects on the tightening financial conditions and will also have an effect on the broader path of monetary policy, for example, higher mortgage rates      >>> Potential growth seems to be temporarily risen than usual (whi