More support for Fed independence from all the living Fed chairs and 11 other central bankers reassure markets. The yen slides on talk of a snap election in Japan. Australian house prices soften.
In our Deep-Dive interview, ANZ’s Senior Commodities Strategist Daniel Hynes explains why concerns about Iran are hitting oil markets more than Venezuela. Oil prices rose 3.4% overnight.
5 things to know in 5 minutes:
All the living chairs of the Fed and 11 other central bank Governors came out overnight in support of the Fed’s independence after Fed Chair Jerome Powell’s unprecedented statement opposing what he said was intimidation by Donald Trump. Investors welcomed that support, with markets stabilising and gold flat, says ANZ Head of G3 Economics Brian Martin.
US underlying inflation of 0.2% in December was slightly less than the 0.3% expected by the markets. Brian says that leaves the way clear for the Fed to restart rate cuts after a pause this month, starting with one in March, and one in June.
Japan’s yen has fallen more than two yen to 159 to the dollar in the last two days because of reports Japan’s new Prime Minister is considering calling a snap election, which is seen as taking pressure off the Bank of Japan to hike, says ANZ’s Head of FX Strategy Mahjabeen Zaman.
ANZ Economist Aaron Luk reports Australia’s house price inflation softened in December to 0.5% from November, the slowest growth in six months.
NZIER’s survey of business confidence in New Zealand improved in the December quarter to its best level in almost a decade, says ANZ Senior Economist Miles Workman.
Cheers,
Bernard.
Catch you tomorrow with the latest news on Fed independence.
