Friday, April 29, 2016 - 11:56 Fed Focus: Further Wage Gains Have To Cheer Fed Policymakers 0
By Steven K. Beckner
(MNI) - To the consternation of Federal Reserve policymakers, wage growth has been unusually slow since the financial crisis tipped the economy into recession, but as labor markets tighten there are mounting signs of moderate wage pressures.
Two government reports seemed to confirm the uptrend Friday.
Wage gains are not the be-all and end-all of monetary policy. Some officials, notably Chicago Federal Reserve Bank President Charles Evans, have put more emphasis on the need to see faster wage gains to justify higher interest rates than others.
It is generally recognized that weak productivity growth limits the potential for higher wages.
Friday, April 29, 2016 - 08:42 MNI Spotlight: US March Personal Income +0.4%; PCE +0.1% 0
--Fed's Kaplan: Should Tighten in 'Gradual and Patient' Way
--ECB Likely Happy at Indicated Q1 Eurozone Growth
--US Stock Futures Down Only Modestly After Thursday's 1.2% Drop
The following are top events and news reported Friday morning ET by MNI in the global financial system:
* U.S. March Personal Income was about as expected but showed little strength into the second quarter, up 0.4% with personal consumption expenditures ahead just 0.1% and core PCE prices also up 0.1% at a 1.6% annual change. The savings rate rose to 5.4%, a high last seen in February of last year. These data had all been incorporated into Thursday's...
Friday, April 29, 2016 - 08:19 Fed Kaplan: Making Good Progress Reaching Full Employment 0
-Brexit Could Open Up Tail Risks Including Sudden FX Depreciation
LONDON (MNI) - Robert Steven Kaplan, the Dallas Fed head, said that the US is making "some very good progress" towards full employment and he could advocate tightening policy in the "not too distant future."
Speaking to reporters, Kaplan refused to be pinned down on which month he would back a hike.
"I am not a fan of central bankers picking meetings" ahead of time, he said.
While he would like to see tightening happen, he said the disconnect between the firm jobs data and the weaker output data needed to be resolved.
Asked what events could occur that might stop him from endorsing...
Friday, April 29, 2016 - 08:00 BOE Cunliffe: Urges Banks, Regulators To Press On With Reform 0
LONDON (MNI) - Bank of England Deputy Governor Jon Cunliffe said Friday that regulators and lenders must press ahead with implementing rules designed to enable banks to fail without the need for government bailouts.
However, Cunliffe said a vast amount of work has been done to come up with better ways to deal with a failed bank and a better answer than 'the taxpayer' to the question of 'who pays?'
"I think it is possible to have a world in which large banks can fail in an orderly way - without the contagion and damage to the economy that in the past has forced the taxpayer to come in and absorb losses," Cunliffe said in Brussels.
Friday, April 29, 2016 - 07:43 Update 1: Fed Kaplan: Neutral Rate Below Historical Levels 0
-Market May Be Underestimating How Soon Fed Makes Next Move
LONDON (MNI) - Robert Steven Kaplan, president of the Federal Reserve Bank of Dallas, said Friday that the neutral rate is currently below historical levels and policymakers will take longer than normal to get there.
In a question-and-answer session following his speech at the Official Monetary and Financial Institutions Forum's City Lecture, Kaplan said, "The neutral rate is ...
Friday, April 29, 2016 - 07:40 China Politburo: Economy Good Start To 2016, But Risks Remain 0
BEIJING (MNI) - China's Politburo, the country's top governing body, said Friday the Chinese economy had a good start to 2016, with economic growth staying within a reasonable range.
At its quarterly meeting to discuss economic conditions, the Politburo said major economic indicators in the first quarter, including GDP growth rate, jobs and personal income levels have all met expectations, according to a statement issued via the official Xinhua News Agency.
However, the Politburo warned, without elaborating, that downward pressure on the economy remains relatively large, with some industries and companies still in difficulties, along with increasing risks for financial markets.
The Politburo said the government will...