Monetary Policy

The last days of Fed independence?

If Trump appoints a pliant Federal Reserve chair and monetary policy is loosened, it could stoke inflation and hurt global economic stability

New York Federal Reserve Bank President John Williams said that it’s critical for the Fed to get inflation back to the 2 per cent target “without creating undue risks” to the job market.

US Fed’s Williams says monetary policy well positioned amid a favourable outlook

He said that it’s critical for the Fed to get inflation back to its 2 per cent target

Current settings put the S$NEER policy band on “a modest and gradual appreciation path”.
OUTLOOK 2026

MAS has breathing room to react to sudden shocks in 2026: economists

Tariffs, fading AI chip demand or a sharper-than-forecast global slowdown could prompt looser policy – but tightening is possible too

Kazuo Ueda’s policy board is widely expected to raise its benchmark rates by a quarter percentage point to 0.75% at the end of the two-day meeting on Friday.

BOJ is set to raise benchmark rates to highest level since 1995

Japan’s first female prime minister has refrained from criticising Ueda’s plans to dial back monetary easing as she prioritises the inflation fight

RBNZ governor Anna Breman said the central bank "would maintain a laser focus on (its) core mandate" of low and stable inflation.

New Zealand central bank says policy path not preset, guided by inflation outlook

[WELLINGTON] New Zealand’s top central banker said on Wednesday (Dec 10) that there was no preset course for monetary policy and that adjustments would be made if the outlook for inflation changed.

The world’s second-largest economy is on track to reach this year’s growth target of around 5%, but faces headwinds from a prolonged property slump, weak consumer demand, excess factory capacity in some sectors and declines in infrastructure-led investment.

China pledges to expand demand with more proactive policies in 2026

The Politburo’s remarks point to a high Budget deficit, debt issuance and additional rate cuts next year to reach a growth target likely to remain at around 5%: analysts

Federal Reserve Governor Christopher Waller said a December cut will “provide additional insurance” against an acceleration in labour market weakening, adding that he backs another 25 basis points reduction.

US Fed official backs further rate cut due to weak job market

Fed Governor Christopher Waller made the remark at a London dinner

Atlanta Federal Reserve President Raphael Bostic’s exit marks the second departure this year of a hawkish voice at the Fed.

Bostic announces retirement amid Trump push for more influence over Federal Reserve

[WASHINGTON] Atlanta Federal Reserve President Raphael Bostic, the first Black and openly gay person to lead one of the US central bank’s 12 regional banks, said on Wednesday he will retire at the end...

There is no sign that we should expect a major twist in the labour picture when official jobs data is finally released.
THE BOTTOM LINE

Case for Fed pause mounts

Unless there is a major surprise in the delayed data about to be released, the case for the third interest rate cut of the year is weakening fast

Japan's Prime Minister Sanae Takaichi also said she would not rule out a cut to Japan’s sales tax as a future option.

Japan PM flags watered-down fiscal goal in push to lift growth

[TOKYO] Japanese Prime Minister Sanae Takaichi said on Monday (Nov 10) that she would work on setting a new fiscal target extending through several years to allow more flexible spending, essentially w...