Breitbart Business Digest: Powell’s Punchbowl Rally
The wave of euphoria that washed over the stock market on Wednesday following the long-awaited rate hike should probably be taken as a warning sign.
The wave of euphoria that washed over the stock market on Wednesday following the long-awaited rate hike should probably be taken as a warning sign.
Fed officials think rates will have to keep climbing this year and next to bring inflation under control.
A prolonged shutdown in China could mean higher inflation in the U.S., and that’s likely to weigh on the minds of Fed officials as they meet this week to discuss their interest rate target.
A rush of sales as rate hikes loom.
For decades, the Fed has helped pump up asset values and fought inflation by bringing down labor demand. What if it tries something very different?
Fannie Mae’s survey found that the optimism of younger Americans declined in January.
Instead of a hike every other meeting, the swaps market now projects a series of consecutive hikes through the middle of this year.
During an interview aired on Wednesday’s edition of ABC’s “World News Tonight,” President Joe Biden stated that Americans should be prepared for economic pain from Federal Reserve interest rate hikes before things improve, “If we don’t pass Build Back Better,”
Turkish President Recep Tayyip Erdogan on Sunday invoked Islamic law to restate his promise to bring inflation under control without raising interest rates, even as Turkey’s economy teetered on the brink of a meltdown and its currency fell to an all-time low against the euro.
The inflation rate in Britain has hit the highest level in a decade as the cost of living has soared as a result of rising energy prices.
The move came despite an ongoing lockdown in Auckland, New Zealand’s largest city, due to a coronavirus outbreak.
Government-decreed lockdowns helped Big Tech gain trillions of dollars in valuation, said Carol Roth, author of The War on Small Business.
Older Americans represent the fastest-growing demographic for student loan debt either from their own debt or that incurred on behalf of their children, data from the U.S. Department of Education shows.
The Fed left its key interest rate target and bond buying program unchanged at the end of its two-day meeting Wednesday. But the projections of Fed officials show that they see more inflation and more growth by the end of the year than they did at the end of their March meeting.
Fed officials discussed planning to have future discussiont to plan shrinking its $120 billion monthly bond-buying program, minutes from the central bank’s April meeting show.
Former NY Fed chief William Dudley thinks interest rates could climb as high as 4.5 percent in the coming years, much higher than most investors expect
The Federal Reserve on Wednesday acknowledged recent progress in employment and economic growth while saying it would keep its interest rate target near zero.
Federal Reserve Vice Chair Randal Quarles issued a stern warning to banks on Monday about the necessity to stop using Libor interest rate benchmarks.
Federal Reserve Chair Jerome Powell emphasized the damage the economy has suffered due to the pandemic and stressed that there was still a long way to go to a full recovery.
The yield curve—the difference in yields for short-term and long-term debt—has sharpened dramatically in recent weeks as investors have sold off bonds maturing five-years or more into the future while shorter-term bonds have held steady.
Trump was lambasted for criticizing the Fed. But as he leaves office, it’s clear Trump won his fight over monetary policy.
Total federal debt held by the public rose 25 percent while Treasury yields fell 57 percent.
Back in June the Fed’s median forecast was for the economy to shrink 6.5 percent. Now it sees only a 3.7 percent contraction.
The Fed said it will continue bond purchases at least at the current rate, around $1 trillion a year.
Far more Americans are worried that inflation will go higher than are worried about unemployment going higher over the next 6 months.
The U.S. Federal Reserve announced Sunday evening that it would slash interest rates to near-zero and buy billions of dollars in bonds in an effort to protect the U.S. economy from the ongoing effects of the coronavirus outbreak.
The futures market now implies that there is a 100% chance the Fed will cut rates by 50 basis points by the end of the next meeting.
The Fed said recently that it believes its current target will remain appropriate for the foreseeable future. The market disagrees.
Coronavirus fears have sent investors fleeing to the safety of U.S. Treasury bonds, pushing yields to record lows.
Donald Trump may not have had much luck in getting the Fed to push down its interest rate target in recent months but investors on Thursday were happy to push down the rate the government pays to borrow. The U.S.
The bond market and President Trump agree: the Fed should cut rates.
Research has found a link between interest rates and fertility, with homeowners more likely to have children when rates fall.
The Federal Reserve on Wednesday left interest rates unchanged and dropped its forecast for a rate hike next year.
The market is all but certain Federal Reserve officials will cut interest rates at the end of their two-day meeting this week. But what comes next is anyone’s guess.
The Consumer Price Index was flat for September, vindicating Trump’s claim that there is no inflation in the U.S. economy.
The odds implied by futures markets now favor a cut in October and another in December. Even January is now in play.
Currency and rates markets agree with Trump: the Fed’s policy is too tight and rates need to come down.
New home sales were much better than expected in August, putting the year on pace to be the best since 2007.
The Fed moved its benchmark short-term rate target to a range between 1.75 percent and 2 percent Wednesday.
Trump says the U.S. is missing out on a once in a lifetime oppoirtunity to borrow cheaply while global rates go negative.