Key of FOMC Members Speech!
• Federal Reserve Board Vice Chair Stanley Fischer on Tuesday warned that while the U.S. and other countries have taken steps to make their housing finance systems stronger, more needs to be done to prevent a future crisis.
Fischer did not address the outlook for U.S. monetary policy or the economy in remarks prepared for delivery to the DNB-Riksbank Macroprudential Conference Series in Amsterdam.
• Boston Fed President Eric Rosengren said on Tuesday that the era of low interest rates in the United States and elsewhere poses financial stability risks and that central bankers must factor such concerns into their decision-making.
• Chicago Federal Reserve Bank President Charles Evans said on Tuesday he is increasingly concerned that a recent softness in inflation is a sign the U.S. central bank will struggle to get price pressures back to its 2percent objective.
• Dallas Federal Reserve Bank President Robert Kaplan on Tuesday expressed doubt that short-term interest rates are very accommodative and said he wants to wait for more data to understand whether recent weak inflation readings are transitory as he suspects.
With yields on U.S. 10-year Treasuries as low as they are, the Federal Reserve needs to be careful about raising U.S. interest rates further, Dallas Federal Reserve President Robert Kaplan said on Tuesday.
The low yields suggest markets expect "sluggish" growth ahead, Kaplan said, and while he is comfortable about where interest rates are now.
• The dollar edged back from one-month highs against a basket of currencies early on Wednesday as a tumble in crude oil prices pushed down U.S. yields, while the pound wobbled near a two-month low after Bank of England Governor Mark Carney shot down hopes of a British interest rate hike. The dollar index against a group of major currencies was a touch lower at 97.719 .DXY.
The dollar was down 0.1 percent at 111.320 yen JPY=, off a near one-month peak of 111.790 touched on Tuesday.
The euro was steady at $1.1137 EUR=. The pound was little changed at $1.2634 GBP=D3. The currency had slid 0.9 percent overnight and plumbed a two-month trough of $1.2603.
• U.S. Senate Republicans plan to unveil the text of their draft healthcare bill on Thursday as senators struggle over issues such as the future of the Medicaid program for the poor and bringing down insurance costs.
• British Prime Minister Theresa May will begin the delicate task of running a minority government on Wednesday by setting out a softer tone on Brexit as Queen Elizabeth formally opens parliament.
May's authority is badly damaged as Britain begins negotiations on leaving the European Union. Four militant attacks have questioned her grip on national security, and the death of at least 79 people in a tower block fire has become a flashpoint for public anger at her party's record in government.
• Oil fell about 2 percent, with Brent settling at seven-month lows and U.S. crude at its cheapest since September, after increased supply from several key producers overshadowed high compliance by OPEC and non-OPEC oil producers with a deal to cut global output.
U.S. crude settled down 2.2 percent at $43.23 per barrel and Brent settled 1.9 percent lower at $46.02.
The drop put U.S. crude in a bear market, traditionally defined as a drop of more than 20 percent from a recent high.
Reference: Reuters
Thai
Eng