Tightening
in sentence
448 examples of Tightening in a sentence
On the contrary, economies worldwide are making progress in recovering from the 2008 disaster, and the US Federal Reserve’s
tightening
of policy last December signals that the global interest-rate cycle is moving into the next phase.
In a world of
tightening
public budgets and growing private wealth, governments cannot provide the required volume of aid on their own.
With the ECB in its current
tightening
mode, “better too late than too early” must be its rule of thumb.
Monetary
tightening
is widely anticipated in the US, with the Federal Reserve having ended quantitative easing in October and likely to raise short-term interest rates sometime in the coming year.
The prospect of US monetary
tightening
coincides with moves by the European Central Bank and the Bank of Japan toward enhanced monetary stimulus.
As for the third, the US Federal Reserve’s slow motion monetary
tightening
has just put the federal funds rate above 1%, and plans to pare the Fed’s asset holdings appear to be in the works.
A Grexit could prove to be the last straw, and would surely lead to a
tightening
in domestic monetary conditions at a very precarious point in the economic cycle.
With the emerging-market economies still structurally subject to short-term risks of contagion, it is usually just a matter of time until a few countries’ problems result in a
tightening
of financial conditions for the asset class as a whole.
But Chinese officials’ piecemeal efforts to restore confidence in the country’s exports – for example, establishing limits for trace amounts of melamine in dairy products and
tightening
quality-control regulations for the dairy industry – are unlikely to reassure foreign consumers or importers.
I have believed for some months that the Fed should start
tightening
monetary policy to reduce the risks of financial instability caused by the behavior of investors and lenders in response to the prolonged period of exceptionally low interest rates since the 2008 financial crisis.
Moreover, despite stronger growth, inflation was tame – if not falling – even in economies like the United States, where goods and labor markets were
tightening.
Fiscal contraction can be expansionary if markets expect that
tightening
today will prevent larger and more disruptive budget cuts (or, worse, a full-fledged fiscal crisis) in the future.
Yet another condition is also crucial for fiscal
tightening
not to wreak havoc on output: the central bank must have room to cut interest rates and allow the currency to adjust.
This includes restoring ties with Europe,
tightening
the nuclear nonproliferation regime and possibly a restoration of China as the centerpiece of US policy in Asia.
One potential shock that has received much attention relates to monetary
tightening.
Though US labor markets are tightening, and the new Fed chair has emphatically emphasized the importance of maximum employment, there is still little risk of high inflation in the near future.
But, though sanctions alone will not stop Iran’s nuclear ambitions, their progressive
tightening
has severely damaged the regime.
The economy recovers, the regulators conclude that they did their job well (which they have), and the regulated then resist further
tightening.
The problem has been solved, the industry argues, and further regulatory
tightening
will harm the economy.
In its recent World Economic Outlook, the IMF recommends monetary
tightening
in emerging markets and continued monetary accommodation in the advanced economies.
And now the US and China have joined her in
tightening
the sanctions noose, particularly with a new prohibition on the export of fuel, including jet fuel.
The latest bout of pessimism over the Chinese economy has focused on the twin headwinds of deleveraging and a related
tightening
of the property market – in essence, a Japanese-like stagnation.
Given this, only a change in fundamentals – the US economy outperforms the consensus forecast and the Fed initiates monetary
tightening
earlier than anticipated, or other economies’ performance is even worse than expected – would cause the dollar to strengthen further.
The second risk is that, even based on current growth expectations, investors may have gotten ahead of themselves in anticipating monetary-policy
tightening.
The Fed would then delay
tightening
for longer than anticipated.
Last but not least, unexpected financial problems – which lower oil prices could catalyze – would interrupt US growth and discourage the Fed from
tightening.
But China’s recent
tightening
of capital controls underscores the challenge it already faces in preventing the renminbi from depreciating further.
This latest round of monetary
tightening
in China reflects the authorities’ growing concern over liquidity.
Budget
tightening
will continue.
Chinese growth is unlikely to accelerate and lift commodity prices; the Fed has increased the pace of its QE tapering; structural reforms are not likely until after elections; and incumbent governments have been similarly wary of the growth-depressing effects of
tightening
fiscal, monetary, and credit policies.
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