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tony@macenews.com


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Contact Mace News President
Tony Mace tony@macenews.com 
to find a customer- and markets-oriented brand of news coverage with a level of individualized service unique to the industry. A market participant told us he believes he has his own White House correspondent as Mace News provides breaking news and/or audio feeds, stories, savvy analysis, photos and headlines delivered how you want them. And more. And this is important because you won’t get it anywhere else. That’s MICRONEWS. We know how important to you are the short advisories on what’s coming up, whether briefings, statements, unexpected changes in schedules and calendars and anything else that piques our interest.

No matter the area being covered, the reporter is always only a telephone call or message away. We check with you frequently to see how we can improve. Have a question, need to be briefed via video or audio-only on a topic’s state of play, keep us on speed dial. See the list of interest areas we cover elsewhere
on this site.

You can have two weeks reduced price no-obligation trial for $199. No self-renewing contracts. Suspend, renew coverage at any time. Stay with a topic like trade while it’s hot and suspend coverage or switch coverage areas when it’s not. We serve customers one by one, 24/7.

Tony Mace was the top editorial executive for Market News
International for two decades. 

Washington Bureau Chief Denny Gulino had the same title at Market News for 18 years. 

Similar experience undergirds our service in Ottawa, London, Brussels and in Asia. 

 

CONTRIBUTORS

Tony Mace

Tony Mace

President
Mace News

Denny Gulino

Denny Gulino

D.C. Bureau Chief
Mace News

Steven Beckner

Steven Beckner

Federal Reserve
Mace News

Vicki Schmelzer

Vicki Schmelzer

Reporter and expert on the currency market.
Mace News

Suzanne Cosgrove

Suzanne Cosgrove

Reporter and expert on derivatives and fixed income markets.
Mace News

Laurie Laird

Laurie Laird

Financial Journalist
Mace News

Max Sato

Max Sato

Reporter, economic and political news.
Japan and Canada
Mace News

FRONT PAGE

BOJ Conducts Its 1st Rate Hike Since 2007, Ends Yield Curve Control in Light of Clear Signs of Faster Wake Hikes This Year

–Overnight Rate Target Raised to A Range of 0% to 0.1% from -0.1% in 7-to-2 Vote
–BOJ Stops Targeting 10-Year JGB Yield After Capping it Around 1% But Continues Buying JGBs in 8-to-1 Vote

By Max Sato

(MaceNews) – The Bank of Japan said Tuesday its nine-member board decided in a majority vote to end its seven-year-old yield curve control framework and lift the overnight interest rate target to a range of zero to 0.1% from minus 0.1%, its first rate hike since February 2007.

Many board members believe that the risk of Japan’s economy slipping back into deflation has been reduced and inflation is likely to be led by sustained wage hikes, instead of a spike in import costs, following news on Friday that wage hikes for fiscal 2024 that begins next month are set to well surpass the pace of increase seen in the previous year.

But the vote on the short-term rate target was 7 to 2. Board member Toyoaki Nakamura voted against the rate hike, urging the board to wait until the bank can confirm smaller firms also have the ability to raise wages. Asahi Noguchi also dissented, arguing ending the negative rate and yield curve control at the same time could disrupt financial conditions.

The board decided to no longer target the yield on 10-year Japanese government bonds (JGBs), which had been capped at around 0.1% under the bank’s official target of “around zero” under the yield curve control framework adopted in September 2016. It is now allowing a natural uptick in long-term interest rates that reflects economic recovery with substantial wage hikes.

The board decided in an 8 to 1 vote to continue its purchases of JGBs “with broadly the same amount as before,” which is currently about 6 trillion yen a month. In case of a rapid rise in long-term rates, the bank will “make nimble responses by, for example, increasing the amount of JGB purchases and conducting fixed-rate purchases of JGBs.” Board member Nakamura voted against the change in the way the bank targets long-term rates.

On the bank’s large-scale asset purchases that it has been using to support market and economic sentiment, the board decided unanimously to stop new purchases of exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITS), and discontinue the purchases of commercial paper and corporate bonds in about a year by reducing them gradually.

The BOJ board also decided to drop its “inflation-overshooting commitment” under which it expanded the monetary base until the year-on-year rate of increase in the core CPI (excluding fresh food) would exceed 2% and stay above the target in a stable manner.

The bank downgraded its view on current conditions, saying, “Japan’s economy has recovered moderately, although some weakness has been seen in part.” It is in line with a similar move by the government last month. The economy narrowly averted a second straight quarterly drop in October-December, and thus recession last year, but GDP for the January-March quarter is expected to contract as consumption has turned weaker amid elevated costs and production has been hit by suspended vehicle output over a safety test scandal.

Unlike other central banks, the BOJ is not raising rates to cool off an overheating economy or elevated consumer inflation. It is taking the first step toward unwinding massive cash injections into the financial system after nearly 11 years of trying to reflate the economy and turn around the deflationary mindset among households and businesses. Both Governor Kazuo Ueda and Deputy Governor Shinichi Uchida have said financial conditions will remain accommodative even after the bank decides to lift the negative short-term interest rate.

The BOJ board “assessed the virtuous cycle between wages and prices, and judged it came into sight that the price stability target of 2 percent would be achieved in a sustainable and stable manner toward the end of the projection period of January 2024 Outlook Report (throughout fiscal 2025 ending March 2026),” the bank said. “The bank considers that the policy framework of quantitative and qualitative monetary easing (QQE) and yield curve control and the negative interest rate policy to date have fulfilled their roles.”

Under the negative interest rate policy introduced in a tight 5-to-4 vote in January 2016 (effective the following month), the BOJ charged 0.1% interest on a small portion of cash reserves parked at the bank by financial institutions, which was designed to encourage banks to lend more but was unpopular among lenders as it squeezed their profit margins.

The bank will update its economic outlook and risk analysis in the next quarterly Outlook Report due in late April. Until then, it is basically repeating its assessment used in the January report.

“Japan’s economy is likely to continue recovering moderately for the time being,supported by factors such as the materialization of pent-up demand, although it is expected to be under downward pressure stemming from a slowdown in the pace of recovery in overseas economies,” the bank said.

“Thereafter, as a virtuous cycle from income to spending gradually intensifies, Japan’s economy is projected to continue growing at a pace above its potential growth rate,” which is estimated to be zero to 0.5%, the bank said.

Looking ahead, the bank also repeated its recent assessment that “there are extremely high uncertainties” surrounding Japan’s economy including developments in overseas economic activities and prices, commodity prices as well as domestic firms’ wage- and price-setting behavior.

“Under these circumstances, it is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan’s economic activity and prices,” the BOJ said, also repeating its past statements.

The BOJ maintained its latest inflation outlook that the year-on-year increase in the core CPI (excluding fresh food prices) is likely to be above 2% through fiscal 2024 ending in March 2025, due to the remaining pass-through effects of cost increases led by the past rise in import prices, but that the rate of increase will decelerate thereafter as those effects wane.

“Meanwhile, underlying CPI inflation is likely to increase gradually toward achieving the price stability target, as the output gap turns positive and as medium- to long-term inflation expectations and wage growth rise,” the bank said, repeating the January Outlook Report.

White House and Other Schedules for Tuesday, March 19

WASHINGTON (MaceNews) – The following are Tuesday’s schedules for the White House, Treasury, USTR, the State Department and Capitol Hill as well as U.S. economic data and Federal Reserve events:

DAILY GUIDANCE AND PRESS SCHEDULE FOR 
TUESDAY, MARCH 19, 2024
 In the morning, the President will receive the President’s Daily Brief. This meeting will be closed press.

Then, the President will travel to Reno, Nevada. The departure from the South Lawn will be open press. The departure from Joint Base Andrews will be covered by the out-of-town pool. The arrival at Nevada Air National Guard, Reno, Nevada will be open press.

After, the President will participate in a campaign event. This event in Reno, Nevada will be covered by the out-of-town pool.

In the afternoon, the President will depart Reno, Nevada en route Las Vegas, Nevada. The departure from Nevada Air National Guard, Reno, Nevada and the arrival at Harry Reid International Airport, Las Vegas, Nevada will be open press.

Then, the President will deliver remarks on lowering costs for American families. These remarks will be open press.

In the evening, the President will depart Las Vegas, Nevada en route Phoenix, Arizona. The departure from Harry Reid International Airport, Las Vegas, Nevada will be open press and the arrival at Phoenix Sky Harbor International Airport, Phoenix, Arizona will be open press.

After, the President will participate in a campaign event. This event in Phoenix, Arizona will be covered by the out-of-town pool.
 
In-Town Pool
Wires: AP, Reuters, Bloomberg
Wire Photos: AP, Reuters, AFP, NYT
TV Corr & Crew: CBS
Print: USA Today
Radio: BBC

Out-of-Town Pool
Wires: AP, Reuters, Bloomberg
Wire Photos: AP, Reuters, AFP, NYT
TV Corr & Crew: ABC
Print: Politico
Radio: NPR
         

EDT

7:45 AM             Out-of-Town Pool Call Time
                             Joint Base Andrews Overhang

8:00 AM            In-Town Pool Call Time

8:00 AM            THE PRESIDENT receives the Presidential Daily Briefing
                              
Closed Press

8:40 AM             THE PRESIDENT departs the White House en route Joint Base Andrews
                                South Lawn
                               Open Press  (Gather 8:25 AM – Palm Room Doors)

9:00 AM             THE PRESIDENT departs Joint Base Andrews en route Nevada Air National Guard, Reno, Nevada
                               Joint Base Andrews
                               Out-of-Town Pool
PDT

11:00 AM            THE PRESIDENT arrives in Reno, Nevada
                                 Nevada Air National Guard, Reno, Nevada
                                 Open Press

11:15 AM              THE PRESIDENT participates in a campaign event
                                
Reno-Tahoe area, Nevada
                                 Out-of-Town Pool


12:45 PM            THE PRESIDENT departs Reno, Nevada en route Las Vegas, Nevada
                                Nevada Air National Guard, Reno, Nevada
                                 Open Press

1:55 PM              THE PRESIDENT arrives in Las Vegas, Nevada
                               Harry Reid International Airport, Las Vegas, Nevada
                                Open Press

3:00 PM              THE PRESIDENT  delivers remarks on lowering costs for American families
                               Las Vegas area, Nevada
                                Open Press


4:15 PM             THE PRESIDENT departs Las Vegas, Nevada en route Phoenix, Arizona
                                Harry Reid International Airport, Las Vegas, Nevada
                                Open Press


MST

5:15 PM            THE PRESIDENT arrives in Phoenix, Arizona
                               Phoenix Sky Harbor International Airport, Phoenix, Arizona
                               Open Press

5:35 PM             THE PRESIDENT participates in a campaign event
                              
Phoenix area, Arizona
                               Out-of-Town Pool

 
Briefing Schedule

EDT

Press Secretary Karine Jean-Pierre will gaggle aboard Air Force One en route Reno, Nevada
 

 TREASURY DEPT –

Tuesday –  -–  Secretary Yellen has no public engagements

  STATE DEPT

Tuesday –  Secretary Blinken is on travel to Austria, the Republic of Korea, and the Philippines from March 14-20, 2024.

10:25 a.m. LOCAL Secretary Blinken participates in a tour of Amkor Technology in Manila, the Philippines.

(POOLED PRESS COVERAGE)

11:35 a.m. LOCAL Secretary Blinken meets with Philippine Foreign Secretary Enrique Manalo in Manila, the Philippines.

(POOLED CAMERA SPRAY AT TOP)

11:50 a.m. LOCAL Secretary Blinken participates in a working lunch with Philippine Foreign Secretary Enrique Manalo in Manila, the Philippines.

(POOLED CAMERA SPRAY AT TOP)

1:20 p.m. LOCAL Secretary Blinken holds a joint press availability with Philippine Foreign Secretary Enrique Manalo in Manila, the Philippines.

(OPEN PRESS COVERAGE)

2:30 p.m. LOCAL Secretary Blinken holds a meet and greet with employees and families of U.S. Embassy Manila in Manila, the Philippines.

(CLOSED PRESS COVERAGE)

4:00 p.m. LOCAL Secretary Blinken participates in an Emerging Voices Exchange Impact Event in Manila, the Philippines.

(POOLED CAMERA SPRAY AT TOP)

5:00 p.m. LOCAL Secretary Blinken meets with Philippine President Ferdinand Romualdez Marcos Jr. in Manila, the Philippines.

(POOLED CAMERA SPRAY AT TOP)

6:00 p.m. LOCAL Secretary Blinken participates in a working dinner with Philippine President Ferdinand Romualdez Marcos Jr. in Manila, the Philippines.

 Headquarters press briefings, when held on weekdays, occur around 1:15p ET and are livestreamed at State.gov.. The transcript of Monday’s 12:34p ET briefing is at: https://www.state.gov/briefings/department-press-briefing-march-18-2024/

 USTR

Tuesday, March 19

Ambassador Tai will participate in a moderated conversation on the President’s 2024 Trade Policy Agenda at the State International Development Organizations’(SIDO) 2024 Washington Leadership Forum. This event is closed press.

Wednesday, March 20

Ambassador Tai will participate in a White House Women’s History Month labor roundtable. This event is closed press.

Ambassador Tai will participate in a fireside chat at Georgetown University Law Center’s Asian Pacific American Law Students Association’s (APALSA) Trailblazers event. This event will be closed press.

.US HOUSE –

Tuesday –. Back at noon ET. Once again, House faces a partial govt shutdown midnight Friday. Meanwhile, votes on barring data brokers from selling sensitive personal data to foreigners.. Two-week recess coming up, likely leaving Ukrain-Israel aid hanging till April at least.

US SENATE

Tuesday – Back 3:00 p.m.: Convene and proceed to executive session to resume consideration of the nomination of Nicole G. Berner, of Maryland, to be United States Circuit Judge for the Fourth Circuit.

UPCOMING US, JAPAN, CANADA ECONOMIC REPORTS AND FEDERAL RESERVE EVENTS

Tuesday, March 19 – 8:30a ET US housing starts

Tuesday, March 19 – 8:30a ET Canada CPI

Tuesday, March 19 – 13:00 ET US Treasury 20-year bond auction

Tuesday, March 19 – 16:00 ET US Treasury TICS

Tuesday, March 19 – 16:00 ET US API weekly oil inventories

Wednesday, March 20 – 7a ET US Mortgage Bankers Assoc mortgage applications

Wednesday, March 20 – 10a ET US Atlanta Fed business inflation expectations

Wednesday, March 20 – 10:30a ET US EIA petroleum status

Wednesday, March 20 – 14:00 ET US FOMC policy announcement

Wednesday, March 20 – 14:30 ET US Fed chair press conference

Wednesday, March 20 – 19:50 ET Japan merchandise trade

Wednesday, March 20 – 20:30 ET Australia employment

Thursday, March 21 – 8a ET UK Bank of England policy announcement

Thursday, March 21 – 8:30a ET US jobless claims

Thursday, March 21 – 8:30a ET US Philadelphia Fed manufacturing

Thursday, March 21 – 8:30a ET US current account

Thursday, March 21 – 9:45a ET US PMI composite flash

Thursday, March 21 – 10a ET US NAR existing home sales

Thursday, March 21 – 10a ET US index of leading indicators

Thursday, March 21 – 10:30a ET US EIA weekly natural gas inventories

Thursday, March 21 – 13:00 ET US 10-year TIPSs auction

Thursday, March 21 – 12:00 ET US Freddie Mac weekly mortgage rates

Thursday, March 21 – 16:30 ET US Fed weekly balance sheet

Thursday, March 21 – 19:30 ET Japan CPI

Friday, March 22 – 8:30a ET Canada retail sales

Friday, March 22 – 9a ET Fed’s Powell at Fed Listens event

Friday, March 22 –13:00 ET US Baker Hughes Rig count

Friday, March 22 –16:00 ET Fed’s Bostic moderated conversation on household finance at Atlanta Fed

Content may appear first or exclusively on the Mace News premium service. For real-time delivery contact tony@macenews.com. X (Twitter) headlines @macenewsmacro

White House and Other Schedules for Monday, March 18

WASHINGTON (MaceNews) – The following are Monday’s schedules for the White House, Treasury, USTR, the State Department and Capitol Hill as well as U.S. economic data and Federal Reserve events:

DAILY GUIDANCE AND PRESS SCHEDULE FOR 
MONDAY, MARCH 18, 2024

 The President and the First Lady will host a Women’s History Month reception at the White House. The President will announce the most comprehensive set of executive actions ever taken to advance women’s health research and innovation. The First Lady and the Vice President will also deliver remarks, and the Second Gentleman will attend. This event in the East Room will be pooled for TV and open to pre-credentialed media.

In the afternoon, the President will receive the President’s Daily Brief. This meeting in the Oval Office will be closed press. The Vice President will join.

In-Town Pool
Wires: AP, Reuters, Bloomberg
Wire Photos: AP, Reuters, AFP, NYT
TV Corr & Crew: ABC
Print: TIME
Radio: AURN
         
EDT

10:00 AM              In-Town Pool Call Time

11:30 AM               THE PRESIDENT, THE FIRST LADY, and THE VICE PRESIDENT deliver remarks at a Women’s History Month reception at the White House; THE SECOND GENTLEMAN attends
                                 
East Room
                                   Pre-Credentialed Media   (Gather 11:15 AM – Palm Room Doors)


3:15 PM                THE PRESIDENT receives the Presidential Daily Briefing; THE VICE PRESIDENT attends
                                   Oval Office
                                   Closed Press


Briefing Schedule

EDT

1:30 PM               Press Briefing by Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan

 TREASURY DEPT –

Monday -–  Secretary Yellen has no public engagements

  STATE DEPT

Monday – Secretary Blinken is on travel to Austria, the Republic of Korea, and the Philippines from March 14-20, 2024.

 Headquarters press briefings, when held on weekdays, occur around 1:15p ET and are livestreamed at State.gov..

 USTR

Monday –

United States Trade Representative Katherine Tai will participate in a virtual ministerial meeting of the Americas Partnership for Economic Prosperity (APEP). This meeting is closed press.

Tuesday, March 19

Ambassador Tai will participate in a moderated conversation on the President’s 2024 Trade Policy Agenda at the State International Development Organizations’(SIDO) 2024 Washington Leadership Forum. This event is closed press.

Wednesday, March 20

Ambassador Tai will participate in a White House Women’s History Month labor roundtable. This event is closed press.

Ambassador Tai will participate in a fireside chat at Georgetown University Law Center’s Asian Pacific American Law Students Association’s (APALSA) Trailblazers event. This event will be closed press.

.US HOUSE –

Monday – Out. Back Tuesday at noon ET. Once again, House faces a partial govt shutdown midnight Friday. Meanwhile, votes on barring data brokers from selling sensitive personal data to foreigners.. Two-week recess coming up, likely leaving Ukrain-Israel aid hanging till April at least.

US SENATE

Monday – Out. Back Tuesday3:00 p.m.: Convene and proceed to executive session to resume consideration of the nomination of Nicole G. Berner, of Maryland, to be United States Circuit Judge for the Fourth Circuit.

UPCOMING US, JAPAN, CANADA ECONOMIC REPORTS AND FEDERAL RESERVE EVENTS

Monday, March 18 – 10a ET US NAHB homebuilders index

Monday, March 18 – 10:30a ET Japan BOJ policy announcement with expectations for an historic rate hike. In anticipation Nikkei was up 2.5% or 979 points at 2a ET Monday.

Tuesday, March 19 – 8:30a ET US housing starts

Tuesday, March 19 – 8:30a ET Canada CPI

Tuesday, March 19 – 13:00 ET US Treasury 20-year bond auction

Tuesday, March 19 – 16:00 ET US Treasury TICS

Tuesday, March 19 – 16:00 ET US API weekly oil inventories

Wednesday, March 20 – 7a ET US Mortgage Bankers Assoc mortgage applications

Wednesday, March 20 – 10a ET US Atlanta Fed business inflation expectations

Wednesday, March 20 – 10:30a ET US EIA petroleum status

Wednesday, March 20 – 14:00 ET US FOMC policy announcement

Wednesday, March 20 – 14:30 ET US Fed chair press conference

Wednesday, March 20 – 19:50 ET Japan merchandise trade

Wednesday, March 20 – 20:30 ET Australia employment

Thursday, March 21 – 8a ET UK Bank of England policy announcement

Thursday, March 21 – 8:30a ET US jobless claims

Thursday, March 21 – 8:30a ET US Philadelphia Fed manufacturing

Thursday, March 21 – 8:30a ET US current account

Thursday, March 21 – 9:45a ET US PMI composite flash

Thursday, March 21 – 10a ET US NAR existing home sales

Thursday, March 21 – 10a ET US index of leading indicators

Thursday, March 21 – 10:30a ET US EIA weekly natural gas inventories

Thursday, March 21 – 13:00 ET US 10-year TIPSs auction

Thursday, March 21 – 12:00 ET US Freddie Mac weekly mortgage rates

Thursday, March 21 – 16:30 ET US Fed weekly balance sheet

Thursday, March 21 – 19:30 ET Japan CPI

Friday, March 22 – 8:30a ET Canada retail sales

Friday, March 22 – 9a ET Fed’s Powell at Fed Listens event

Friday, March 22 –13:00 ET US Baker Hughes Rig count

Friday, March 22 –16:00 ET Fed’s Bostic moderated conversation on household finance at Atlanta Fed

Content may appear first or exclusively on the Mace News premium service. For real-time delivery contact tony@macenews.com. X (Twitter) headlines @macenewsmacro

MORE NEWS

CONTACT US/SALES

President, Mace News:

tony@macenews.com


Washington Bureau Chief:

denny@macenews.com


SUBSCRIPTIONS

Contact Mace News President
Tony Mace tony@macenews.com 
to find a customer- and markets-oriented brand of news coverage with a level of individualized service unique to the industry. A market participant told us he believes he has his own White House correspondent as Mace News provides breaking news and/or audio feeds, stories, savvy analysis, photos and headlines delivered how you want them. And more. And this is important because you won’t get it anywhere else. That’s MICRONEWS. We know how important to you are the short advisories on what’s coming up, whether briefings, statements, unexpected changes in schedules and calendars and anything else that piques our interest.

No matter the area being covered, the reporter is always only a telephone call or message away. We check with you frequently to see how we can improve. Have a question, need to be briefed via video or audio-only on a topic’s state of play, keep us on speed dial. See the list of interest areas we cover elsewhere
on this site.

You can have two weeks reduced price no-obligation trial for $199. No self-renewing contracts. Suspend, renew coverage at any time. Stay with a topic like trade while its hot and suspend coverage or switch coverage areas when it’s not. We serve customers one by one 24/7.

Tony Mace was the top editorial executive for Market News International for two decades. 

Washington Bureau Chief Denny Gulino had the same title at Market News for 18 years. 

Similar experience undergirds our service in Ottawa, London, Brussels and in Asia.

 

Mace News Archives