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Fed’s Perli: Monthly Pace of Treasury Purchases Likely to Be ‘Significantly Reduced’ After Mid-April
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- The Federal Reserve will significantly reduce its monthly government bond purchases after mid-April, according to Fed markets official Roberto Perli.
- The Fed’s bond-buying program is for reserve management, ensuring banks have adequate reserves for daily operations, not economic stimulus.
- The adjustment is tied to the U.S. income-tax season, which affects banking system reserves, allowing the Fed to throttle back purchases.
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Bank of Canada to Protect Economy From Risk of Persistent Inflation, No. 2 Official Says
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- The Bank of Canada’s priority is preventing higher energy prices from the Iran war from causing extended, elevated inflation.
- Senior Deputy Gov. Carolyn Rogers said officials expect increased crude-oil and natural-gas costs to lead to higher inflation.
- Rogers noted higher energy prices would lift Canadian income but also squeeze household budgets and corporate margins.
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Korea’s Incoming Central Bank Chief Faces Tough Balancing Act
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- South Korea’s central bank pick, Shin Hyun-song, could lead to a more hawkish policy stance amid economic challenges and geopolitical tensions.
- Markets imply a quarter-point rate increase within six months and up to 100 basis points over the next year.
- Economists from ING and Citigroup expect rate hikes in July and October, with ING not ruling out a May hike.
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Bank of Mexico Cuts Benchmark Interest Rate in Split Decision After Pause
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- The Bank of Mexico lowered its benchmark interest rate by a quarter of a percentage point to 6.75% in a 3-2 split decision.
- The Bank of Mexico will assess timing for an additional rate cut, citing Middle East conflict uncertainty and raising inflation forecasts.
- Mexico’s inflation rose to 4.63% in mid-March, led by fresh fruit and vegetable prices, while core inflation slipped to 4.46%.
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U.S. Jobless Claims Rose Slightly Last Week
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- U.S. jobless claims rose to 210,000 in the week through March 21, up from 205,000 a week earlier, the Labor Department said.
- Continuing jobless claims fell to 1.82 million in the week through March 14, the lowest level since May 25, 2024.
- Low jobless claims signal employers are not implementing widespread layoffs, despite a relatively cooler labor market.
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U.K. Consumer Sentiment Dampens as Iran War Provokes Inflation Worries
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- U.K. consumer confidence fell two points to minus 21 in March, the lowest point since April last year, amid renewed fears over price rises from the Iran war.
- The OECD expects U.K. inflation to average 4% in 2026, up from 2.5%, and downgraded U.K. growth to 0.7% this year due to the war.
- U.K. retail sales volumes declined 0.4% on month in February, according to separate data from the Office for National Statistics.
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EU Lawmakers Vote to Advance U.S. Trade Deal
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- European Union lawmakers voted 417 to 154 to advance talks on a trade deal with the U.S., initially reached in July 2025.
- The deal would eliminate tariffs on most U.S. goods to the EU and cap tariffs on EU goods to the U.S. at 15%.
- The parliament added safeguards, allowing temporary tariff suspension if U.S. imports harm EU industry or if the U.S. fails commitments.
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Growth in Asia Could Slow Sharply on Prolonged Mideast Conflict, ADB Says
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- A prolonged Middle East conflict could cut developing Asia’s economic growth by up to 1.3 percentage points and raise inflation by 3.2 percentage points through 2027, the Asian Development Bank said.
- The effects would be uneven, with Southeast Asia likely seeing the most negative growth impacts and South Asia experiencing the largest inflation spikes.
- The Asian Development Bank advised central banks to prioritize stability, avoid overly aggressive tightening, and provide targeted liquidity support.
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FTC Issues Warnings to Payment Processors Against ‘Debanking’
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- The Federal Trade Commission warned Mastercard, Visa, PayPal, and Stripe against denying financial services based on political or religious views.
- FTC Chair Andrew Ferguson cited President Trump’s August executive order on “debanking” in letters to the companies.
- The FTC warned that denying access inconsistent with terms of service could lead to investigations and enforcement actions.
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Fannie Mae to Accept Crypto-Backed Mortgages for the First Time
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- Fannie Mae will soon accept so-called crypto-backed mortgages, a new product from Better Home & Finance and Coinbase Global that allows home buyers to pledge crypto.
- The goal is to tap in to demand from potential home buyers who don’t want to use their cash savings for a down payment and don’t want to sell their crypto investments.
- Once the crypto assets have been pledged for the down payment, the homeowner can’t trade them.
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WSJ Pro Central Banking brings you news and analysis from a global team of reporters and editors at The Wall Street Journal and Dow Jones Newswires. Send your tips, suggestions and feedback to service@dowjones.com. An artificial-intelligence tool created these summaries, which are based on the text of the article and checked by an editor. Read more about how we use artificial intelligence in our journalism.
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