Theresa May is under mounting pressure as politicians like former Cabinet minister Michael Fallon dubbed her deal as “the worst of all worlds”. The UK Prime Minister’s plan is due to be put before the UK Parliament next month, but it has not stopped lawmakers from trying to change the terms of the agreement.
Across the Atlantic, Federal Reserve (Fed) member Richard Clarida yesterday, 27 November suggested interest rates are “much closer to neutral”. Speaking to bankers in New York, Clarida also said that monetary policy would be “data dependent”.
His comments come ahead of the minutes from the Fed’s latest meeting due for release this Thursday, 29 November. The Fed’s next meeting will take place in December where the central bank is expected to raise interest rates to the 2.25–2.5 per cent range.
Following the Fed’s recent shift to dovish rhetoric, some economists suggest the central bank may slow down or even pause its monetary policy tightening in the first quarter of 2019.
Finally, Bank of England Governor Mark Carney and Fed Chair Jerome Powell are scheduled to speak today at 16:45 (GMT) and 17:00, respectively. Market participants will listen for clues to the future monetary policy path, as well as any Brexit news and the ongoing US-Chinese trade tensions.
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