MORNING ROUNDUP 11/11 — Hawkish Fed officials speak out after hot CPI (2/2)
4. BoC raises rates by 25bp to 2.50% + Schmid: demand remains strong.
The Bank of Canada released the minutes of its October 28 meeting—the meeting at which the BoC raised interest rates by 25bp to 2.50% (the first increase since July 2023), after Canadian inflation reached 3.1% in September. The minutes show the Council agreed that caution is needed before raising rates further—leaving the door open to another increase but with no preset path; rising cost pressures will eventually feed through to core inflation.
On the Fed side, Kansas City Fed President Schmid said demand remains strong, and that the current interest-rate level is no reason to hesitate in adjusting monetary policy.
5. Logan (Dallas Fed): balance the outlook, inflation, and labor risks.
Logan stressed that the Fed must balance both its objectives—curbing inflation without allowing the labor market to deteriorate. She previously said the Fed would need at least two more 25bp hikes to bring inflation back to its 2% target.
6. U.S. mortgages rise by $257 billion in Q3.
The New York Fed: U.S. household mortgage balances rose by $257 billion in Q3—reversing a $74 billion decline in Q2, largely due to an error in converting loan-servicing units. The rebound in household debt shows that U.S. consumers are still borrowing heavily despite high interest rates—the data will be considered by the Fed ahead of its December 8–9 meeting.
$BTC #fed #cpiwatch
4. BoC raises rates by 25bp to 2.50% + Schmid: demand remains strong.
The Bank of Canada released the minutes of its October 28 meeting—the meeting at which the BoC raised interest rates by 25bp to 2.50% (the first increase since July 2023), after Canadian inflation reached 3.1% in September. The minutes show the Council agreed that caution is needed before raising rates further—leaving the door open to another increase but with no preset path; rising cost pressures will eventually feed through to core inflation.
On the Fed side, Kansas City Fed President Schmid said demand remains strong, and that the current interest-rate level is no reason to hesitate in adjusting monetary policy.
5. Logan (Dallas Fed): balance the outlook, inflation, and labor risks.
Logan stressed that the Fed must balance both its objectives—curbing inflation without allowing the labor market to deteriorate. She previously said the Fed would need at least two more 25bp hikes to bring inflation back to its 2% target.
6. U.S. mortgages rise by $257 billion in Q3.
The New York Fed: U.S. household mortgage balances rose by $257 billion in Q3—reversing a $74 billion decline in Q2, largely due to an error in converting loan-servicing units. The rebound in household debt shows that U.S. consumers are still borrowing heavily despite high interest rates—the data will be considered by the Fed ahead of its December 8–9 meeting.
$BTC #fed #cpiwatch
