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Monetary policy

Yesterday

Donald Trump blamed former president Joe Biden for the state of the stock market, and urged patience until his tariffs kick in.

Trump concedes tariffs politically risky as economy contracts

The US economy contracted by an annualised 0.3 per cent over the first quarter, as US companies responded to Trump’s trade war by rushing to import goods.

April

Michelle Bullock, governor of the Reserve Bank of Australia, is widely expected to lower the cash rate next month.

Bond market too optimistic about rapid rate cuts, investors warn

Benign inflation data has boosted bets of a rate cut next month, but fund managers caution against the aggressive easing path implied by markets.

Consumers are at a low ebb.

US consumer confidence plunges to lowest in 5 years on Trump tariffs

The figures reflect a rapidly souring mood among Americans, who expect prices to rise because of the tariffs imposed by Donald Trump.

Powell draws applause on independence at closed-door IMF meeting

The Fed chair told the meeting central banks must be shielded from politics to do their jobs.

Interest rates

RBA says interest rates don’t hit households as hard as you’d think

The RBA wants you to know that changes in household cash flow from interest rates get too much attention.

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Changing times: President Donald Trump shakes hands in 2017 with Jerome Powell after announcing him as his nominee for the next Federal Reserve chair.

Can Trump fire Powell before his term ends?

Any prospect that the Fed chair could be sacked over a policy like lower interest rates would likely tank financial markets.

President Donald Trump’s erratic tariff moves have led to wild swings in US government debt over the past week by undermining confidence in the US economy and the direction of the US policy.

US Treasuries slide with worst sell-off since 2019

Volatility continued to lash assets in the US markets with bonds extending a slide that could be the biggest in more than five years.

Donald Trump said he had been considering his tariff pause for some time.

US inflation unexpectedly cools ahead of tariffs impact

New data showed the consumer price index unexpectedly dipped 0.1 per cent in March.

Trade tariffs typically push up inflation. But markets are expecting rates to be cut as global growth slows.

Traders eye up to five RBA rate cuts amid market turmoil

The Aussie tumbled below US60¢, its lowest level since early in the COVID-19 pandemic, as the bond market ramped up expectations of bigger interest rate moves.

The highest echelons of America’s economic bureaucracy thought it was a good idea to slap tariffs on penguins and used a stunningly puerile “formula” to justify that and other tariff measures.

Trump’s idiocy will put a 2 in front of RBA cash rate by end of year

Retaliatory tariffs are a supply shock that will not only see the global economy lurch into a deep recession but will do so with a near-term inflationary bias.

Earlier this month, RBA governor Michele Bullock said it was too early to judge the potential implications of Trump’s win on the Australian economy.

Trump tariffs to force RBA to cut rates up to four times in 2025

Economists predict the trade war will cause a global slowdown that will impact the Australian economy, with markets increasingly certain of a rate reduction in May.

Reserve Bank Meeting 1 April

More rate cuts? That would have to be an April Fool’s joke

The inflation fighter deep inside Michele Bullock has resurfaced, and the RBA has reminded everyone that restoring price stability is the main game.

RBA governor Michele Bullock

RBA won’t join desperate guessing game

Central banks are as much on edge as markets, as the world waits to learn the impact and extent of Donald Trump’s tariffs. Caution reigns at the Reserve Bank.

Reserve Bank of Australia governor Michele Bullock is trying to thread the needle.

The ‘credit cycle that never was’ will limit RBA rate cuts

After the pain of 13 hikes, there is still a real question as to how much more support the central bank can really provide in this easing phase.

The Reserve Bank held interest rates at 4.1 per cent.

RBA has interest rate trigger for Trump trade war

The Reserve Bank of Australia isn’t quite sure what impact Donald Trump’s imminent next round of tariffs will have on inflation, but it is ready to act.

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March

Michele Bullock, governor, Reserve Bank of Australia, is in no rush to cut interest rates again.

Traders temper bets on RBA rate cuts after pre-election budget

Bond investors are concerned about Australia’s spending plans as the government’s financing arm unveiled the biggest annual funding program outside the pandemic.

Bank of England governor Andrew Bailey.

Bank of England leaves rates unchanged at 4.5pc as inflation stays high

UK inflation remains at 3 per cent, above the bank’s 2 per cent target and is set to push higher in the coming months.

Federal Reserve Chair Jerome Powell  highlighted “unusually elevated” uncertainty.

Investors cheer as traders dial up Fed rate cut bets

Equities rallied around the world as bond markets priced in the possibility of two rate cuts from US Federal Reserve this year and in Australia.

President Donald Trump has unleashed a barrage of tariffs and plans to impose more on April 2.

US inflation eases, as economists await impact from Trump’s tariffs

Analysts anticipate that the president’s escalating trade wars will drive up prices on a range of goods from food to clothing in the coming months.

Inside the sudden exit of a central bank governor

The aggressively nationalist Kiwi central bank boss Adrian Orr deliberately pushed New Zealand into recession. Australian bankers hope his sudden exit will give them some relief.

Original URL: https://www.afr.com/topic/monetary-policy-5zu