Federal Reserve System

Canada lowers key interest rate

CANADA - Canada's central bank trimmed its key overnight interest rate on 29 May by 25 basis points to 4.5 per cent, stating that while US demand for Canadian products had slowed during the first part of the year, the domestic economy continued to show…

Low inflation may erode bank's credibility

SPEECH - The Bank of England's credibility could be at risk if it continues to undershoot its 2.5 per cent inflation target for more than another two years, according to a member of the bank's Monetary Policy Committee.

The outlook for the economy

SPEECH - President Santomero of the Federal Reserve Bank of Philadelphia on the outlook for the US economy. He was speaking on 22 May at the County Chamber of Commerce, Philadelphia.

Fed sends clear signal of more rate cuts to come

US - Tuesday 15 May's interest rate cut of 0.5% by the Federal Reserve was the fifth consecutive half-point cut in short-term interest rates. Does this represent the end of the Federal Reserve's dramatic and unprecedented efforts to prop up the weakening…

Supereconomies face clashes

EUROPE - Central bank politics is assuming an intriguing role in attempted reversal of the slowdown of the US economy and spreading effects on other parts of the world.

Shadow Committee slams Fed

According to the US Shadow Open Market Committee the Fed had lsot sight "of its long-run inflation objective of price stability" in its recent series of rate cuts.

International Economic Review article

RESEARCH - Jon Faust and Lars E. O. Svensson of the Board of Governors of the Federal Reserve, writing in the International Economic Review, define and study transparency, credibility, and reputation in a model where the central bank's characteristics…

US is wrong to browbeat the ECB into cutting rates

GERMANY - America is wrong to try to browbeat the European Central Bank into cutting interest rates "I hear but I do not listen," remains the response of Wim Duisenberg, president of the European Central Bank, to the clamour for lower interest rates.

Euro rates held steady

EUROPE - The European Central Bank has decided to leave interest rates unchanged after a scheduled board meeting in Frankfurt on Apr 26.

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