• Wednesday, November 20, 2019 - 14:47 MNI POLICY: Morneau at Finance Means Canada Deficits Stay Too 0


    --Trudeau Must Pass Budget By Spring With Opposition Support

    OTTAWA (MNI) - Canada remains on a path of running small enough budget deficits to nudge down the country's debt relative to GDP after Prime Minister Justin Trudeau kept Bill Morneau at finance in a post-election cabinet shuffle on Wednesday.

    Trudeau's Liberals need one of three opposition parties to support a budget due by next spring to stay in power, after being reduced to a minority of seats in the Oct. 21 vote. Their campaign platform called for a C$27.4 billion shortfall in the fiscal year starting in April, narrowing to C$21 billion by 2024.

  • Wednesday, November 20, 2019 - 14:25 MNI POLICY: Congress Knocks U.S.-Japan Trade, USTR Outreach 0


    By Brooke Migdon and Alexandra Kelley

    WASHINGTON (MNI) - U.S. House Ways and Means subcommittee members criticized President Donald Trump's administration for circumventing Congress while reaching an initial trade accord with Japan, and said the deal needed to better assist American farmers.

    Members of Congress claimed Wednesday during a hearing on U.S.-Japan trade that consultations didn't take place before and during the U.S. Trade Representative's talks with Japan, as required under a 2015 act.

    "Sadly the USTR ignored our request for meaningful consultation while negotiations with Japan were ongoing," Ways and Means Chairman Earl Blumenauer (D-OR) said in his opening statement.

  • Wednesday, November 20, 2019 - 14:00 FOMC Minutes Excerpt: Many Participants See Rates On Hold 0


    WASHINGTON (MNI) - The following is an excerpt of the Federal Open Market Committee minutes describing committee's policy action, published Wednesday for the October meeting:

    With regard to monetary policy beyond this meeting, most participants judged that the stance of policy, after a 25 basis point reduction at this meeting, would be well calibrated to support the outlook of moderate growth, a strong labor market, and inflation near the Committees symmetric 2 percent objective and likely would remain so as long as incoming information about the economy did not result in a material reassessment of the economic outlook.

  • Wednesday, November 20, 2019 - 14:00 FOMC Minutes Excerpt: Standing Repo Facility Seen As Useful 0


    WASHINGTON (MNI) - The following is an excerpt of the Federal Open Market Committee minutes describing committee's policy action, published Wednesday for the October meeting:

    Many participants noted that, once an ample supply of reserves is firmly established, there might be little need for a standing repo facility or for frequent repo operations. Some of these participants indicated that a basic principle in implementing an ample-reserves framework is to maintain reserves on an ongoing basis at levels that would obviate the need for open market operations to address pressures in funding markets in all but exceptional circumstances.

  • Wednesday, November 20, 2019 - 14:00 FOMC Minutes Excerpt: Forward Guidance, QE Discussion 0


    WASHINGTON (MNI) - The following is an excerpt of the Federal Open Market Committee minutes describing committee's policy action, published Wednesday for the October meeting:

    Participants discussed the relative merits of qualitative, date-based, and outcome-based forward guidance. A number of participants noted that each of these three forms of forward guidance could be effective in providing accommodation, depending on circumstances both at and away from the ELB. They also suggested that different types of forward guidance would likely be needed to address varying economic conditions, and that the communications regarding forward guidance needed to be tailored to explain the Committees evaluation of the economic outlook.

    ...
  • Wednesday, November 20, 2019 - 08:28 MNI POLICY: Dip in manufacturing could spread - ECB's Makhlouf 0


    By Luke Heighton

    FRANKFURT (MNI) - The slowdown in euro area manufacturing may already have spilled over into labour markets, the governor of the Central Bank of Ireland indicated Wednesday, as he underlined the negative economic effects of ongoing US-China trade tensions and the uncertainty caused by Brexit.

    Makhlouf also highlighted financial stability concerns, pointing to the growth in market-based finance as an additional source of vulnerability, and said the European Central Bank should be prepared to "challenge familiar paradigms and theories" in response to prolonged low inflation.

    Here are the key points from the speech in Waterford, Ireland:

    --Makhlouf described the macroeconomic outlook as "mixed,"...