Key Events Around the Globe: Dec 31

Fed Minutes Highlight Mixed Views About Outlook For Interest Rates

Following a split decision to lower interest rates by another quarter point last month, the minutes of the Federal Reserve’s December meeting provided further clarification about officials’ mixed views about the outlook for rates.
The minutes revealed participants expressed a “range of views” about the restrictiveness of the Fed’s current monetary policy stance. Most participants judged that further rate cuts would likely be appropriate if inflation declined over time as expected, the Fed said.
However, the Fed noted some participants felt it would likely be appropriate to keep rates unchanged for “some time” following the quarter point rate cut at the December 9-10 meeting.

China Factory Activity Returns to Growth in December, PMI Shows

China’s factory activity unexpectedly grew in December, returning to expansion due to an uptick in domestic demand and new orders, official purchasing managers index data showed on Wednesday. The official manufacturing PMI rose to 50.1 in December from 49.2 in November, moving back above the 50-point mark that separates expansion from contraction. Economists had expected the index to remain steady at 49.2.

Chicago Business Barometer Rebounds Much More Than Expected In December

A report released by MNI Indicators on Tuesday showed a significant rebound by its reading on Chicago-area business activity in the month of December. MNI Indicators said its Chicago business barometer jumped to 43.5 in December after plunging to 36.3 in November. Economists had expected the index to rise to 39.5