Monetary Policy
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Fed Chairman Kevin Warsh to speak at IMF meetings on Oct. 16, potentially reinforcing or recalibrating Fed's message before blackout period
Fed Chairman Kevin Warsh is scheduled to appear in a moderated conversation at the fall meetings of the International Monetary Fund on Oct. 16 in Bangkok (11:30 pm U.S. Eastern time on Oct. 15), just
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Australia-US Bond Yield Gap Nears Zero as Policy Paths Diverge
Australia’s benchmark bond yield looks poised to fall below its US counterpart for the first time in over a year, as expectations for monetary policy in the two economies diverge.
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Fed Vice-chair Philip Jefferson signals central bank will keep rates on hold in October
The Vice-chair for monetary policy, Philip Jefferson, echoed dovish remarks made by New York central bank head John Williams.
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ECB's Schnabel: Central banks can modernize monetary policy by going on-chain
Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), stated that central banks could modernize monetary policy implementation by going on-chain. She highlighted that toke
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India's central bank successfully attracted dollar inflows, but this has exacerbated the inflation fight, potentially necessitating a more hawkish monetary policy.
India's central bank successfully attracted dollar inflows, but this has exacerbated the inflation fight, potentially necessitating a more hawkish monetary policy.
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ECB's Schnabel: We have raised interest rates by 50 basis points since June, bringing the deposit facility rate to 2.5%.
Isabel Schnabel, a member of the Executive Board of the European Central Bank (ECB), stated that the ECB's Governing Council has acted promptly since the outbreak of the Middle East conflict worsened
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Global bond markets experienced their "darkest September," with U.S. Treasury yields surging to their highest levels since 2007, yet equity markets resisted the downturn.
The global bond market suffered a severe blow in September, recording its worst monthly performance in years. The 10-year US Treasury yield alone rose by over 45 basis points in the month, reaching ne
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Bloomberg Markets Analysis: Real Estate Stocks Are a Bold Bet on Monetary Policy Reversal
Bloomberg Markets analysis indicates that market pessimism towards real estate stocks is severe amid rising interest rates, creating conditions for investors to achieve significant gains when monetary
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Bank of Canada Boosts Two-Week Repo Use to Ease Corra Strain
Bank of Canada Deputy Governor Toni Gravelle said the central bank is trying to reduce upward pressure on Corra by regularly increasing the size of its two-week repo operations.
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Australia's September interest rate decision: 4.6%, expected 4.6%, previous 4.35%, in line with expectations.
Australia's September interest rate decision: 4.6%, expected 4.6%, previous 4.35%, in line with expectations.
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The Impact of Central Bank Digital Currencies on Monetary Policy: Global Progress and In-depth Analysis
Central Bank Digital Currencies (CBDCs), as digital fiat money issued by central banks, are profoundly reshaping the global monetary policy landscape. This article will delve into how CBDCs function by strengthening transmission mechanisms, influencing financial stability, enhancing the precision of policy tools, and reshaping the international monetary system. We will examine the latest developments in projects such as China's Digital Yuan, Europe's Digital Euro, and the mBridge, analyzing the perspectives and design considerations of various parties regarding CBDCs to help readers fully understand their potential impact.
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Chicago Fed President Goolsbee cautions against monetarism's resurgence, stating its record doesn't warrant it
Chicago Fed President Goolsbee cautions against monetarism's resurgence, stating its record doesn't warrant it
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US Treasury Secretary Bessent calls on the Federal Reserve to "keep an open mind," suggesting Warsh emulate Greenspan in the 1990s rather than the ECB in 2008.
U.S. Treasury Secretary Scott Bessent, in an interview with Kudlow, stated his hope that the Federal Reserve would "keep an open mind" and suggested that Fed Chair Warsh should be more like Alan Green
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Money Supply and Inflation: Understanding Their Complex Relationship
There is a close link between money supply and inflation, with the quantity theory of money being the core theory explaining this relationship. However, as financial markets develop and economic structures change, this relationship has become increasingly complex, not a simple linear transmission. Central banks manage the money supply through monetary policy to achieve goals such as price stability and economic growth, but the formation of inflation is influenced by a combination of multiple factors and requires a multi-dimensional examination.
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The Bank of Japan will change the interest rate for its collateralized short-term funding operation from fixed to floating.
The Bank of Japan announced that, effective September 25, 2026, the interest rate for its Complementary Lending Facility (collateralized short-term funds-supplying operation) will be adjusted from a f
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Comments highlighted issues with monetary policy decisions in the US and Japan, with the 10-year US Treasury yield briefly rising to 5.04% last week.
A South China Morning Post commentary noted that the U.S. Treasury market is in distress, oil prices are surging, and the Japanese yen may fall again. Last week, the 10-year U.S. Treasury yield briefl
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Fed's Perli: The Federal Reserve's bond purchases will be adjusted based on market conditions, focusing on signs of funding stress to maintain ample reserves.
Roberto Perli, an official at the Federal Reserve Bank of New York, stated on Tuesday that the Fed's purchases of U.S. Treasury bills are not on a preset path and will be adjusted in the future based
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MarketWatch analysis: Widening credit spreads globally signal a potential worsening in stock valuations, as financial conditions tighten
The analysis suggests that while financial conditions eased considerably after peaking in late 2022 and early 2023, early signs indicate a shift. As central banks begin tightening policy, sovereign an
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China's LPR (Loan Prime Rate) has remained unchanged for 16 consecutive months, with the 1-year LPR at 3.0% and the over-5-year LPR at 3.5%. A publication overseen by the central bank stated that "the necessity of directly lowering policy interest rates is not high."
The People's Bank of China (PBOC) authorized the National Interbank Funding Center to announce the latest Loan Prime Rates (LPRs) on September 20. The one-year LPR is 3.0%, and the over-five-year LPR
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U.S. Treasury Secretary Scott Bessent seeks to influence Japan's fiscal and monetary policy, Nikkei Asia reports, stating that Japan's response must be mutually beneficial.
U.S. Treasury Secretary Scott Bessent met with Japanese Finance Minister Satsuki Katayama for the first time after their coordinated intervention. Nikkei Asia noted that the U.S. Treasury's move aims
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Nikkei: BOJ's Friday rate hike was influenced by US pressure to shore up the yen, following Treasury Secretary Bessent's call for "decisive" action in August
The Bank of Japan's decision on Friday to raise interest rates, a departure from its usual cautious approach, was reportedly spurred by a "currency alliance" with the US. US Treasury Secretary Scott B
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The Bank of Japan (BOJ) revised the terms of its Climate Change Response Financing Support Operations, setting the total loan cap at 50 trillion yen.
The Bank of Japan's Policy Board decided at its Monetary Policy Meeting on September 17-18 to revise the "Principal Terms and Conditions for the Funds-Supplying Operations to Support Financing for Cli
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Uganda's Central Bank Hikes Reserve Ratio to Defend Shilling
The Bank of Uganda raised the cash reserve requirement for commercial banks as the shilling continues to slide.
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UBS: A substantial shift in Federal Reserve Chairman Warsh's policy reaction function, becoming more sensitive to financial conditions and less sensitive to the labor market.
UBS's report assesses a substantial shift in Federal Reserve Chair Warsh's policy reaction function compared to his predecessors: greater sensitivity to financial conditions, less sensitivity to labor
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Dallas Fed President Logan supported this week's Federal Reserve decision but still believes two more rate hikes are needed.
Dallas Federal Reserve President Lorie Logan expressed support for the Fed's decision to maintain interest rates this week, but she continues to believe the Federal Reserve still needs to raise rates
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St. Louis Fed President Musalem: Judged it necessary to further tighten monetary policy "soon," otherwise inflation could be too high unless the Federal Reserve raises rates further.
St. Louis Fed President Alberto Musalem stated that he judges it necessary to "soon" further tighten monetary policy. He outlined two inflation scenarios, with the one he considers more likely being:
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The Bank of Japan (BOJ) announced an update to its Japanese Government Bond (JGB) purchase plan for the October-December 2026 quarter, covering monthly purchase amounts for JGBs across various maturities.
The Bank of Japan (BOJ) announced its updated Japanese government bond (JGB) purchase plan for the October-December 2026 quarter, detailing monthly purchase amounts across various maturities. Specific
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Federal Reserve Chairman Kevin Warsh’s plan to reduce annual interest-rate decisions raises investor concerns about increased volatility in the $32 trillion Treasury market.
Federal Reserve Chairman Kevin Warsh’s plan to reduce annual interest-rate decisions raises investor concerns about increased volatility in the $32 trillion Treasury market.
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The European Central Bank (ECB) kept its three key interest rates unchanged. Lagarde stated that rising energy prices pose an upside risk to inflation and that the ECB is not pre-committing to a specific interest rate path.
The European Central Bank (ECB) kept its three key interest rates unchanged, with Christine Lagarde stating that rising energy prices pose upside risks to inflation and that the ECB is not pre-committ
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The Federal Reserve will reduce the number of monetary policy meetings from eight to seven next year, breaking with decades of tradition.
The Federal Reserve has voted to maintain interest rates, despite rising inflation. Additionally, the Federal Reserve will reduce the number of monetary policy meetings next year from eight to seven,
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Bond investor Jeff Gundlach: The Federal Reserve should raise interest rates by 50 basis points in September, concerned that inflation is not being taken seriously enough.
DoubleLine founder Jeff Gundlach stated that the Federal Reserve should raise interest rates by 50 basis points at its September meeting, rather than gradually, after the Fed's decision on Wednesday t
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Federal Reserve Chairman Warsh: The Federal Reserve has decided to adjust the FOMC meeting schedule in the fall of next year, with 6 policy-setting meetings expected in 2028.
Federal Reserve Chairman Warsh stated that the Federal Reserve has decided to adjust the FOMC meeting schedule next autumn. There will still be 8 meetings annually, but one of these meetings will not
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Federal Reserve Chairman Warsh: The Federal Reserve will have one meeting in 2027 without a monetary policy vote, and two meetings in 2028 focused on policy strategy.
Federal Reserve Chairman Warsh stated that the Federal Reserve plans to hold 8 meetings in 2027, but one of them will not involve a vote on monetary policy settings, focusing instead on strategy. In 2
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Fed's Warsh: We have clearly articulated our readiness to act and demonstrated our willingness to do so.
Fed's Warsh: We have clearly articulated our readiness to act and demonstrated our willingness to do so.
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U.S. Treasury yields rose ahead of the Federal Reserve's interest rate decision later today, with yields moving higher during Wednesday's Asian trading session.
U.S. Treasury yields rose ahead of the Federal Reserve's interest rate decision later today, with yields moving higher during Wednesday's Asian trading session.
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Asia's central banks are blindsiding markets with their rate calls, a trend expected to continue.
Asia's central banks are blindsiding markets with their rate calls, a trend expected to continue.
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Japan's Services Producer Price Index Annual Inflation Rose to 3.7% in September
Japan's Services Producer Price Index (SPPI) annual inflation rate rose to 3.7% in September, but the slowdown in price growth for labor-intensive services and the stable inflation rate excluding inte
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A measure of underlying inflation in Japan surged to a three-year high
A measure of underlying inflation in Japan surged to a three-year high, with consumer prices excluding fresh food and special factors rising 3.2% year-on-year in September, accelerating from 2.6% in t
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wrote in Securities Times that DR001 has become the target interest rate for the People's Bank of China's monetary policy adjustments
Lou Feipeng, a researcher at Postal Savings Bank of China, wrote in Securities Times that DR001 has become the target interest rate for the People's Bank of China's monetary policy adjustments. The Pe
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broader price increases could slow the pace of inflation returning to target and lead to monetary policy remaining tighter for longer
Fitch Ratings' Head of US Economics stated that the breadth of US inflation had expanded before the recent acceleration in headline inflation, indicating that the rise in inflation was not solely due
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South Korean brokerages are warning of further downside in the Kospi as foreign selling and weakening trading activity weigh on stocks
South Korean brokerages are warning of further downside in the Kospi as foreign selling and weakening trading activity weigh on stocks. Korea Investment & Securities has identified 5,200 as a potentia
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Investors in US and European banks' riskiest debt (AT1s) are demanding more compensation on new deals as the easy-money run fades.
Investors in US and European banks' riskiest debt (AT1s) are demanding more compensation on new deals as the easy-money run fades.
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The Bank of Japan (BOJ) may officially declare it has achieved its 2% inflation target at next week's meeting, signaling an exit from its "anti-deflation mode."
According to Kyodo News, the Bank of Japan (BOJ) will hold its monetary policy meeting from October 29 to 30, where it will make an official judgment on whether the inflation rate has reached its long
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ECB official Philip R. Lane: Enhance the EUREP international liquidity tool to support monetary policy transmission in the Euro area.
Philip R. Lane, Member of the Executive Board of the European Central Bank, stated that the ECB has enhanced its international liquidity tool, the Eurosystem Repo Facility for central banks (EUREP), t
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Analysts point out that the People's Bank of China (PBOC) may be entering a multi-month transition period to shift towards an overnight policy rate as its benchmark. This would necessitate more frequent use of new candidate benchmark tools for liquidity operations to test market reactions.
Analysts point out that the People's Bank of China (PBOC) may be entering a multi-month transition period to shift towards an overnight policy rate as its benchmark. This would necessitate more freque
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China's October LPR quotes are out: the 1-year LPR remains at 3.0%, and the over-5-year LPR at 3.5%, both unchanged for 17 consecutive months.
China's October LPR quotes are out: the 1-year LPR remains at 3.0%, and the over-5-year LPR at 3.5%, both unchanged for 17 consecutive months.
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China's central bank signals that the overnight reverse repo rate will replace the seven-day rate as its main policy benchmark, further aligning with global peers.
China's central bank signals that the overnight reverse repo rate will replace the seven-day rate as its main policy benchmark, further aligning with global peers.
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Federal Reserve Chairman Warsh: AI will "fundamentally change the implementation of monetary policy" by improving forecasting.
Former Federal Reserve Governor Kevin Warsh stated that artificial intelligence will "fundamentally change the conduct of monetary policy" by improving forecasting. He noted that the Federal Reserve c
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The Impact of Central Bank Digital Currencies on Monetary Policy: Global Progress and In-depth Analysis
Central Bank Digital Currencies (CBDCs), as digital fiat money issued by central banks, are profoundly reshaping the global monetary policy landscape. This article will delve into how CBDCs function by strengthening transmission mechanisms, influencing financial stability, enhancing the precision of policy tools, and reshaping the international monetary system. We will examine the latest developments in projects such as China's Digital Yuan, Europe's Digital Euro, and the mBridge, analyzing the perspectives and design considerations of various parties regarding CBDCs to help readers fully understand their potential impact.
-
Money Supply and Inflation: Understanding Their Complex Relationship
There is a close link between money supply and inflation, with the quantity theory of money being the core theory explaining this relationship. However, as financial markets develop and economic structures change, this relationship has become increasingly complex, not a simple linear transmission. Central banks manage the money supply through monetary policy to achieve goals such as price stability and economic growth, but the formation of inflation is influenced by a combination of multiple factors and requires a multi-dimensional examination.
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Profound Impact and Current Status Analysis of Ethereum's Monetary Policy Post-Merge
The Merge, Ethereum's transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), and the implementation of EIP-1559 have revolutionized ETH's monetary policy. Daily new issuance has been drastically reduced by approximately 88%, and the annualized inflation rate has significantly decreased. Although recent data shows a slight increase in Ethereum's supply, its overall scarcity narrative has been strengthened, and the liquidity issue of staked ETH has been resolved, making it a more efficient and environmentally friendly blockchain network.
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Why is Bitcoin thriving but struggling to replace the US dollar?
Bitcoin has achieved significant growth and widespread acceptance globally, thanks to its decentralization, scarcity, censorship resistance, and its narrative as "digital gold" for value storage. However, its inherent drastic price volatility, transaction speed limitations, lack of universal fiat currency status, and governments' control over monetary policy make it difficult to become a stable everyday transaction medium and global reserve currency like the US dollar. Bitcoin and the US dollar each play different roles, and it is difficult for them to replace each other in the short term.
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USDT (USDT) and Global Monetary Policy: Far-Reaching Implications for Traditional Financial Stability
As of July 2026, USDT (USDT)—the world’s largest stablecoin—had reached a market capitalization of approximately $184 billion and plays a central role in the crypto ecosystem. Its reserve composition has shifted significantly toward U.S. Treasury bonds, making it a major holder of U.S. government debt.This article will explore the latest developments regarding USDT in terms of reserve transparency and global regulatory compliance (such as the U.S. GENIUS Act and the EU’s MiCA), and provide an in-depth analysis of how its growing influence poses potential challenges to central banks’ monetary policy transmission mechanisms, the banking deposit base, and overall financial stability.
Monetary Policy
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