• Not that anyone was in any doubt, but the Federal Reserve’s dovish turn is consistently being confirmed.
• Chicago Fed President Charles Evans said he can see the central bank keeping rates where they are until late 2020.
• And there are indications that as the Fed studies what it may have gotten wrong in its policy moves regarding inflation, the review is also starting to consider its employment mandate.
• Any changes or review of Fed policy will presumably be music to the president's ears.

(Source: Bloomberg)

• The U.K. labor market continued its impressive performance in the three months through February as employment jumped and wage growth far outpaced inflation.
• The number of people in work rose by 179,000 to a record high, keeping unemployment at 3.9 percent, the lowest rate since 1975, the Office for National Statistics said Tuesday.
• Basic wages rose 3.4 percent from a year earlier, close to an 11-year high.
• The figures help to explain the resilience of consumer spending, which has kept the economy growing as companies slash investment amid the continuing deadlock over Brexit. 

(Source: Bloomberg)

• European negotiators got the green light this week to get started on trade negotiations with the U.S., with a target of getting something done by September.
• Meanwhile, the U.S. and China continue to talk and the latter is considering a request from the former to shift some tariffs on agricultural goods to other products, just as U.S. soybean shipments slump.
• All in all, the four biggest economies in the world are now gripped by trade negotiations.

(Source: Bloomberg)

• The Housing Agency of Jamaica (HAJ) will be increasing the number of affordable housing solutions provided to low- and middle-income earners.
• As stated in the 2019/20 Public Bodies Estimates of Revenue and Expenditure, the entity is projecting to deliver some 1,460 solutions this fiscal year, up from 309 in 2018/19. These comprise serviced lots, housing starts and/or completed houses.
• In addition, construction is scheduled to commence on 2,058, housing starts, up from 1,477 in the previous financial period.

(Source: JIS)

• Officials of the International Monetary Fund (IMF) are banking on a return to growth for the Barbados economy as a result of Government’s austerity measures.
• Chief of the World Economic Studies Division in the Research Department of the IMF, Oya Celasun is predicting that confidence will return to the local economy in the coming months as a result of the four-year austerity IMF-backed programme.
• Responding to a question from Barbados TODAY at the 2019 World Economic Outlook media conference in Washington yesterday, Celasun also pointed out that in coming months, tourism-dependent economies in the Caribbean should experience higher growth than commodity dependent ones.

 (Source: Barbados Today)

• With the start of the Atlantic Hurricane season in June not too far away, forecasters are predicting a below average season.
• In a statement, researchers said: “We anticipate a slightly below-average probability for major hurricanes making landfall along the continental United States coastline and in the Caribbean.”
• The Colorado State University Tropical Meteorology predicts five hurricanes, 13 named storms, 50 named storm days, 16 hurricane days, two major (Category 3-4-5) hurricanes and four major hurricane days.
• The 2018 season saw 15 named storms and eight hurricanes which included two Category 4 hurricanes. The 2019 hurricane season starts June 1 and ends November 30.

 (Source: Reuters)

• A key measure of U.S. inflation rose less than forecast in March on a drop in apparel prices following a methodology change for data collection, offering some reinforcement for the Federal Reserve’s message of patience on interest rates.
• The core consumer price index, which excludes food and energy, rose 0.1% from the prior month, and 2% from a year earlier, according to a Labour Department report Wednesday
• Those readings missed both the monthly and annual estimates of economists, while the broader CPI climbed 0.4% as forecast and a faster-than-estimated 1.9% annually.

(Source: Bloomberg)

• Economists expect U.S. first-quarter growth to decelerate less than previously thought even as they cut forecasts for the rest of the year, projecting a second-quarter rebound will fade as the effects of tax cuts wane.
• The median estimate for growth in the first three months of the year increased to 1.6% from 1.5 percent seen last month, according to an April 5-10 Bloomberg News survey.
• At the same time, forecasts for the second quarter held at 2.6% while those for the third edged down to 2.2% and were also lower for the fourth, at 2%.

(Source: Bloomberg)

• Jamaica’s consumers and businesses continue to show confidence in the economy as evidenced by the Jamaica Chamber of Commerce (JCC) commissioned survey results for the first quarter of 2019.
• The indices tracking consumer confidence and business confidence recorded historical highs of 177.5 and 151.3, respectively.
• These improvements emanate from respondents’ expectation for observation of increased availability of jobs, and their anticipation that the economy will continue to boom due to expansion in sectors such as construction.

(Source: JCC)

• The Bank of Jamaica on Monday intervened in the foreign exchange market through the Bank’s Foreign Exchange Intervention and Trading Tool (B-FXITT).
• Approximately US$20Mn was sold to authorized dealers and cambios and the Bank highlighted that the flash sale was necessary to smooth temporary gaps between supply and demand in the market.
• The BOJ, in their press release, urged companies to utilize forward contracts in an environment where the exchange rate moves in both directions in order to minimize the risks associated with foreign exchange obligations.

(Source: Bank of Jamaica)