Federal Reserve Governor Michelle Bowman says inflation is close enough to the central bank's target to justify more interest rate cuts at a Psaros Center for Financial Markets and Policy event at Georgetown University. ...

Nigel Farage and Richard Tice met with the Bank of England Governor - Tolga Akmen/Shutterstock Reform UK will urge Rachel Reeves to overhaul the Bank of England’s money-printing programme to gain a £20bn lifeline ahead of the Budget. Richard Tice, Reform’s deputy leader, is writing to Ms Reeves and the leader of the House of Commons to request an urgent debate on the issue following a meeting with Andrew Bailey, the Bank’s Governor, on Thursday. The party claims the Treasury could save billions by cha ...

Core Insights - Brazil's central bank projects inflation to remain near the official target but will not meet it, forecasting 3.1% for Q1 2028, down from 3.4% for Q1 2027 [1][2] - The central bank maintains a target inflation rate of 3% with a tolerance band of 1.5 percentage points [2] - Interest rates are held at 15%, indicating a prolonged pause in monetary policy to control consumer prices [2] Inflation Forecasts - The central bank has lowered its 2025 inflation forecast to 4.8% from 4.9% and kept the 2026 projection at 3.6% [3] - Factors contributing to inflation include a dynamic labor market and increased residential electricity costs, while the appreciation of the real and reduced inflation expectations are seen as downward pressures [3] GDP Growth Projections - The GDP growth forecast for 2025 has been reduced to 2.0% from 2.1%, reflecting expected moderation due to recent monetary policy tightening [3] - For the first time, the central bank has projected GDP expansion for 2026 at 1.5% [4]

New Zealand's first foreign central bank governor in modern history takes the top job amid heightened criticism of the bank's management of the economy and as independent monetary policy around the world comes under political pressure. ...

Core Points - New Zealand has appointed Anna Breman as the new central bank governor, marking the first time a woman has held this position [1][4] - Breman is currently the First Deputy Governor of Sweden's central bank, the Riksbank, and will assume her role at the Reserve Bank of New Zealand (RBNZ) on December 1 [1][2] - The appointment follows a significant shakeup at the RBNZ amid criticism regarding its economic management [1] Group 1 - Anna Breman brings a strong blend of technical skills and organizational leadership experience to the RBNZ [2][3] - The RBNZ board conducted a global search identifying 300 potential candidates before nominating Breman [3] - Breman has extensive experience in monetary policy, financial stability, and payments systems from her time at the Riksbank [4] Group 2 - Breman is the first foreign national to be appointed as the RBNZ governor in its modern history [4][5] - New Zealand has a historical significance in women's rights, being the first self-governing country to grant women the vote [5] - The previous governor, Christian Hawkesby, will step down after a brief tenure following the resignation of Adrian Orr [6]

Core Viewpoint - Brazil's central bank has entered a "new stage" of monetary policy, opting to keep interest rates unchanged at 15% while assessing if this level is sufficient to achieve the 3% inflation target [1][2]. Monetary Policy - The rate-setting committee acknowledges that the current economic scenario aligns with its monetary policy stance, indicating a gradual moderation in growth [2]. - The central bank halted an aggressive tightening cycle in July, which had increased the Selic rate by 450 basis points since September 2024 [3]. - Policymakers remain vigilant, particularly monitoring services inflation, and have noted a more favorable inflation dynamic compared to earlier this year, although concerns about deanchored inflation expectations persist [3]. Inflation Data - Brazil's 12-month inflation rate reached 5.13% in August, while the central bank's target is set at 3%, with a permissible range of plus or minus 1.5 percentage points [4]. Criticism of Monetary Policy - Finance Minister Fernando Haddad criticized the central bank's high borrowing costs, stating he sees "no justification" for maintaining elevated interest rates and believes there is room for rates to decrease [5].

Core Viewpoint - Sweden's central bank has reduced its key policy rate to 1.75%, indicating that this cut may represent the final monetary easing of the current cycle [1] Group 1 - The key policy rate has been lowered to 1.75% [1] - The central bank suggests that this rate cut could signify the end of the current cycle of monetary easing [1]

Core Viewpoint - The Federal Reserve is navigating a complex landscape of employment data, inflation pressures, and political influences as it considers future interest rate decisions [1][3][10]. Employment Data and the Fed - The Fed's focus on employment data is shifting due to slowed immigration under the current administration, which limits job growth potential [4][5]. - The variability in job growth data complicates economic analysis, as recent employment gains may not reflect true economic conditions without understanding immigration trends [5][6]. Inflation Data and the Fed - The Fed is closely monitoring inflation data, which is influenced by both underlying inflationary pressures and tariffs, making it challenging to determine the appropriate policy response [9]. - Recent inflation trends have raised questions about whether changes are temporary or indicative of a longer-term trend, complicating the Fed's decision-making process [9]. Politics and the Fed's Policies - Political pressures, particularly from President Trump, are influencing the Fed's interest rate decisions, with potential implications for the independence of the institution [11][15]. - The structure of the Federal Open Market Committee (FOMC) allows for political influence, especially if the president appoints members aligned with his agenda [12][15]. Future Interest Rate Decisions - The Fed is likely to continue small interest rate cuts into 2025 and 2026, influenced by recent employment weaknesses and political dynamics [16][17]. - The balance between maintaining the Fed's independence and responding to political pressures will be a critical factor in future interest rate decisions [17].

Group 1 - The appropriate Fed funds rate is estimated to be in the mid 2% area, which is nearly two percentage points lower than the current policy [1] - The Federal Reserve aims to promote price stability for the benefit of American households and businesses [1] - There are significant risks associated with maintaining a restrictive policy, particularly concerning the Fed's employment mandate [2] Group 2 - Current monetary policy is considered to be well into restrictive territory, with short-term interest rates being approximately two percentage points too tight [3] - The tight monetary policy could lead to unnecessary layoffs and higher unemployment rates [3]

Core Viewpoint - Stephen Miran, a new appointee to the Federal Reserve's interest-rate-setting board, advocates for more aggressive interest rate cuts, suggesting rates should be below 3% by year-end [2][6]. Interest Rate Decisions - The Federal Reserve recently cut interest rates by a quarter point, bringing them to a range of 4% to 4.25%, the lowest since early 2023. Miran was the only voting member to oppose this decision, advocating for a half-point cut instead [1]. Economic Analysis - Miran believes that concerns over inflation due to tariffs are overstated, arguing that small price changes in certain goods do not warrant significant worry. He predicts that exporters will lower prices, and he expects a cooling in the housing market due to a declining population influenced by immigration policies [2][4]. - In contrast, Fed Chair Jerome Powell acknowledges that higher tariffs have begun to increase prices in some categories, but the overall impact on economic activity and inflation remains uncertain [3]. Inflation Targeting - The Federal Reserve has maintained a target inflation rate of 2%, which has not been achieved since 2021. Miran views this target as overly restrictive and believes that precise inflation targets can lead to excessive micromanagement [5][6]. Role and Influence - Miran is positioned as an economic advocate for Trump within the Fed, being the first governor to serve on the board while also holding a role in the executive branch in nearly a century. He is currently on leave from his role as chair of Trump's Council of Economic Advisers [6]. - Miran emphasizes his independence in decision-making, stating that he will not conform to consensus for its own sake and will vote according to his beliefs [8].