Central Banks
Fed Telegraphs No Aussie-Style Policy Pivot in Inflation Battle
- US central bank unlikely to follow RBA in slowing tightening
- Markowska at Jefferies says ‘way too early’ for Fed down-shift
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Federal Reserve officials are starting to get what they want from the economy, but the bar for any “pivot” toward a less-aggressive monetary policy tightening path is probably still high.
The Reserve Bank of Australia surprised investors Tuesday with a smaller-than-expected interest-rate increase, helping fuel a global rally in stocks amid hopes other central banks would soon follow. And a monthly US Labor Department report on job openings suggested labor demand is beginning to recede -- a key development the Fed has been waiting to see.