Fed’s enduring target rate debacle, Outlook for Chile and Latin America
Tuesday 10 December 2019 – Vol.10 Ed.50.1
Commentary: Fed’s enduring target rate debacle
By Pierre Ortlieb in London
A critical issue looms over US monetary policy-making: the choice of alternative reference and target rates. In April 2018, the Federal Reserve selected the secured overnight financing rate as its alternative reference rate. But its lethargy in reforming its target rate has created significant market uncertainty. This has contributed to the ructions that have upset the overnight rates complex since the end of quantitative easing. The Fed should use the temporary pause in interest rate movement to make inroads in resolving this long-standing quandary.
Read the full commentary on the website.
Tuesday 21 January, London, 9:00-10:30 GMT
Global economic unrest, trade tensions and volatile exchange rates are troubling Chile, necessitating the recent sale of currency reserves by its central bank. These factors, taken together with social and political turmoil in Latin America, have moderated Chile’s economic outlook. Joaquín Vial, deputy governor of the Banco Central de Chile, will discuss the state of the Chilean and Latin American economies, touching on monetary policy, macroeconomic indicators and regional trends.
Request to attend the meeting.