Brazil’s central bank chief, Roberto Campos Neto, highlighted that recent market volatility may indicate a diminishing space for fiscal and monetary intervention in the future. This observation suggests that the market is adjusting its expectations and pricing in a scenario where policy tools will have limited effectiveness. Campos Neto also pointed out the potential repercussions
Economy
The Federal Reserve plays a crucial role in influencing the economy’s momentum through its holdings of mortgage bonds. According to a recent academic paper presented at a central bank research conference, the Fed’s use of increases and contractions in its holdings of Treasury and mortgage bonds is a key component of its monetary policy arsenal.
On a Friday, U.S. stocks experienced a significant rally in response to dovish comments made by U.S. Federal Reserve Chair, Jerome Powell. Powell’s remarks solidified expectations that the central bank will cut its key policy rate in September. The highly anticipated comments, delivered during the Jackson Hole Economic Symposium, highlighted Powell’s belief that “the time
Canada’s economy is facing a significant threat as a railway stoppage continues to persist, causing concerns among economists and analysts. The potential impact of this stoppage on the nation’s GDP could be disastrous if it extends beyond a week. According to Pedro Antunes, chief economist at the Conference Board of Canada, a two-week strike could