All Posts Tagged: Peru
Global central banks from Europe, Canada, Peru, Switzerland, Denmark, and India all made moves this month to loosen monetary policy and head off economic and deflation risks.
For a detailed look at this and other developments, see my full weekly analysis. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on Jan. 23.Key observations:
- A weaker euro will bolster Europe’s exports, tourism, and transportation industries, while helping to stabilize Eurozone prices.
- The European Central Bank’s (ECB) recent actions reduce the risk of financial contagion from the Eurozone to the U.S., which solidifies our outlook for a relatively robust U.S. economy this year.
- The ECB decision Thursday makes a Fed mid-2015 liftoff date for the Fed funds target rate more likely.
- Even if oil prices lead to a temporary bout of deflation here in the United States, it won’t last and is not likely to lead to adverse outcomes for domestic demand.