Highlights of the discount rate minutes – 10 banks voted to hike – 3 banks voted not to hike – Regional directors noted tight labor markets, higher wages – Some officials uncertain about tax cuts The three dissents were very soft. There were no dissents at the FOMC meeting.
Preview of the Bank of Canada interest rate decision on April 18, 2018 The Bank of Canada is suddenly a bellwether. Central banks are having a moment of doubt. This was supposed to be the year of global synchronized growth and steadily tightening policy everywhere.
Fed’s Evans on the economic outlook in Chicago – Sees little risk of accelerating, markedly high inflation – Global growth is picking up but sees trade uncertainty In my opinion, if you’re not worried about inflation, you shouldn’t be hiking. The Fed is raising rates just so it has room to lower them later.
Speaker in the Russian Upper house of parliament – Russia response to US sanctions will be precise and painful Not sure the guy has heard the latest: More on the ‘no new sanctions on Russia’ story
CIA Director Pompeo meet with the Kimster President Trump catching up with Greg; And some guy in Asia:
OPEC wants a tighter oil market The gift to shale producers just keeps on giving. OPEC and non-OPEC partners are unlikely to change the supply cut deal in June, according to three OPEC sources cited by Reuters. They won’t even raise caps if inventory targets are met.
Merkel wants European Monetary Fund Merkel reportedly told a party meeting that she favors moving towards a European Monetary Fund while saying that member states should retain scrutiny over any EMF loans.
Bank of Canada decision and the Beige Book on the agenda The economic data calendar is basically bare in upcoming US and Canadian trading. The only numbers that will roll out are the weekly EIA energy inventories. Judging by the released late Tuesday, there should be small draws across the board.
S&P 500 up 0.26% The S&P 500 rose 8 points to 2714 at the open after a 26-point gain on Tuesday. The index is at the best levels since March 21, which was the day the Fed hiked.
USD/CAD at 1.2560 USD/CAD rose as high as 1.2598 today but selling at the big figure has been the story since. The US dollar is broadly weaker and that’s pulled the pair down to 1.2560.