Not ‘Too Late Hawkesby’ Will Make Fed Watchers Hopeful
New Zealand’s rate cut was one that the White House could love.
Hawkesby may end up wearing the moniker “too much,” rather than “too late.”
Photographer: Mark Coote/BloombergNew Zealand’s central bank barely registers for a White House intent on bullying the Federal Reserve. That’s too bad. The interest-rate cut the tiny country just delivered, in the face of rising inflation, is one President Donald Trump would’ve loved.
The bold part wasn’t so much the Reserve Bank of New Zealand’s quarter-point reduction last week. The shock came when Governor Christian Hawkesby forecast further easing; many economists had figured officials were about done. The benchmark rate had, after all, been brought down to 3% from a peak of 5.5% reached in 2023. The market reaction was pronounced and immediate: The local currency tumbled, along with bond yields. Hawkesby told reporters he was pleased with the response.