MMA FREE WEEKLY COLUMN FOR THE WEEK BEGINNING APRIL 15, 2024 ©
April 12, 2024
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Rate cuts are coming. Economically, the dissenters on the (ECB) governing council are probably correct and rate cuts would be better now—but precise timing on monetary policy is less important when the objective is cyclical (precision matters when the aim is liquidity or managing disorderly markets).
—Dr. Paul Donovan, “Prices, Policy, and Politics,” UBS Morning Comment, www.ubs.com, April 12, 2024.
U.S. consumer sentiment and Americans’ view on the economy both fell more than expected in April, as inflation expectations rose…American households are turning more pessimistic as higher prices for everyday items take their toll. The latest University of Michigan read on consumer sentiment for April fell to 79.3 after coming in at 82.5 last month. Economists only expected that index to fall to 82.2.
—Breck Dumas, “US Consumer Sentiment Falls More than Expected as Inflation Fears Rise,” www.foxbusiness.com, April 12, 2024.