June 11, 2024
United States:
Fed’s Higher-for-Longer Stance Hits Firms That Expected Rate Cut
American businesses and consumers started the year thinking interest rates would finally come down, making big plans to buy equipment or a house. Now all of that is on hold, slowing large swaths of the economy for the foreseeable future.
In Michigan, a maker of cutting tools has delayed as much as $1 million in spending this year on new equipment. In Atlanta, a woodworking machine maker says some customers are trying to extend the life of an apparatus.
Europe:
Europe Poised to Delay Basel Bank Trading Rules by a Year
The European Union is set to delay key parts of global bank capital rules by a year, so that the bloc’s lenders will not be disadvantaged by continued wrangling over the standards in the US, according to people familiar with the matter.
The EU was due to implement the wider package starting Jan. 1, some seven years after the measures were agreed by regulators on the Basel Committee on Banking Supervision as the final part of rule-making designed to prevent a repeat of the 2008 financial crisis.
Asia:
BOJ Expected to Weigh Bond Buying Cuts as Rate Hike Timing Nears
The Bank of Japan is broadly expected to discuss cutting bond purchases at a policy meeting ending Friday, with some investors expecting the central bank to also lay the groundwork for raising interest rates next month.
Governor Kazuo Ueda and his fellow board members will keep the policy rate in a range between 0 and 0.1% at the end of their two-day gathering, according to all but one economist surveyed by Bloomberg. A majority predicts the board will opt to cut bond purchases from around ¥6 trillion ($38.6 billion) per month.
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