* Four of Fed's 12 voters dissented on Wednesday, most in 34 years. * Warsh says 'family fight' dynamic improves Fed decision-making. * Warsh clears key hurdle on way to Fed chair post. By Ann Saphir. Kevin Warsh wanted a family fight at the Federal Reserve. "The war in Iran has made the Fed's job incredibly complex and there's a wide range of views of what to do next," Long said.
* Gross domestic product forecast to increase at 2.3% rate. * Post-shutdown rebound in government spending to account for much of anticipated pickup. * Consumer spending projected to have slowed further as inflation reduces spending power. By Lucia Mutikani.
* China's official manufacturing PMI expands for second straight month. * Export orders surge as buyers stockpile amid Iran war fears. * Rising energy prices threaten sustainability of export-led growth. * Non-manufacturing PMI drops to 49.4, highlights fragile domestic demand.
* Japan's Nikkei falls 1% but South Korea hits another record. * Nasdaq futures up 1% on still positive results from tech gaints. * Brent hovers near $120 a barrel as Strait of Hormuz remains closed. * Fed holds rates but saw rising dissent over lower interest rates. * Dollar hovers above 160 yen, global bond yields march higher. By Stella Qiu.
* RatingDog manufacturing PMI 52.2 in April vs 50.8 in March. * Output and new orders strengthened. * Input price inflation highest in just over four years. * Firms raise output prices at fastest rate since October 2021. China's manufacturing sector expanded in April at its fastest pace since the end of 2020, driven by stronger output and surging new orders, a private survey showed on Thursday.
China's factory activity expanded for a second straight month in April, an official survey showed on Thursday, suggesting that growth momentum held despite external shocks stemming from the Middle East war.
Global oil prices jumped to a four-year high of more than $126 a barrel on Thursday on concerns that the U.S.-Iran war could worsen and lead to a protracted Middle East supply disruption that could hurt global economic growth, but later retreated.
* March factory output falls 0.5%, compared with forecast of +1.1% * Petroleum-related goods lead downturn, data shows. * Separate survey shows consumer confidence slump in April. * Think tank projects price hike rush as soon as this summer. * Data highlight dilemma BOJ faces in steering rate hikes. By Kantaro Komiya and Leika Kihara.
Benchmark Japanese government bond yields rose to a 29-year high on Thursday after the Federal Reserve signalled growing concerns about inflation, while a stalemate in U.S.-Iran peace talks pushed oil prices higher.
Japan's factory output unexpectedly fell 0.5% in March from the previous month versus the median market forecast for a 1.1% gain, hit by shrinking output in chemical and petroleum products, government data showed on Thursday. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect seasonally adjusted output to rise 2.1% in April and increase 2.2% in May.
* BoE expected to keep Bank Rate at 3.75% * MPC seen voting 8-1 for hold decision. * Bailey: bets on rate hikes in 2026 are premature. * Chief economist has warned against "wait-and-see" approach. * BoE likely to raise inflation forecast, cut growth outlook. By William Schomberg.
* Markets see three rate hikes starting in June. * Growth is tumbling on war fallout. * Second-round inflation effects not yet visible. * Decision at 1215 GMT, press conference at 1245 GMT. By Balazs Koranyi and Francesco Canepa.
Brazil's central bank cut interest rates by 25 basis points on Wednesday for a second straight meeting, leaving its next moves open as it sizes up the economic effects of the U.S.-Israel war against Iran.
Kevin Warsh, U.S. President Donald Trump's pick to lead the Federal Reserve, cleared a key procedural hurdle on Wednesday, opening a path for him to succeed Jerome Powell next month amid the White House's unprecedented efforts to exert control over the world's most powerful central bank.
More Federal Reserve officials dissented against Wednesday's U.S. central bank policy decision and statement than at any of their interest-rate-setting meetings in the past 34 years.
Brazil's central bank cut interest rates by 25 basis points on Wednesday for the second straight meeting, as widely expected, despite a deterioration in the inflation outlook triggered by the U.S.-Israel war against Iran.
* Wall Street choppy, dollar rises after Fed holds rates steady. * Fed shows three dissents on easing bias, one dissenter favored a cut now. * Microsoft (MSFT), Alphabet, Amazon (AMZN) and Meta report earnings. * Oil prices rally on fears of extended U.S. blockade of Iran. By Sin?ad Carew and Elizabeth Howcroft.
Oil surged toward $120 a barrel on Wednesday on deepening supply fears, while U.S. bond yields jumped and stocks stumbled after the Federal Reserve's decision to keep interest rates on hold masked the most divided vote since 1992.
Oil surged toward $120 a barrel on Wednesday on deepening supply fears, while U.S. bond yields jumped and stocks stumbled after the Federal Reserve's decision to keep interest rates on hold masked the most divided vote since 1992.
US equity indexes closed mixed on Wednesday as crude oil futures and government bond yields rose amid concern that no end is in sight for the Iran war. The Federal Open Market Committee maintained its target rate at a policy meeting, but beneath that outcome, the level of dissent was, reportedly, the highest since 1992. The Dow Jones Industrial Average fell 0.6% to 48,861.81 at the close.
US equities closed mixed Wednesday after the Federal Reserve kept interest rates steady at the end of what was likely Jerome Powell's last policy meeting as central bank chief. The Dow Jones Industrial Average fell 0.6% to 48,861.8, while the Nasdaq Composite and the S&P 500 were little changed at 24,673.2 and 7,136, respectively.
* Fed's Powell says he will stay as governor when chair term ends. * Powell gave no timetable for exit as governor. * Powell's term as governor runs until 2028. By Michael S. Derby.
* Fed keeps rates in 3.50%-3.75% range. * Oil prices rise, boosting dollar demand as safe haven. * Yen weakens near intervention levels. By Chibuike Oguh. The dollar strengthened against major currencies on Wednesday after the U.S. Federal Reserve left interest rates unchanged, with investors also on edge as the U.S.-Israel war with Iran shows little sign of easing.
"The market is starting to feel a little bit on the heavy side," said Jamie Iselin, head of municipal fixed income at Neuberger Berman. "The Treasury market has been leaking higher as, I think, people are getting concerned that the conflict in the Middle East is going to [last] longer."
Jerome Powell used his final press conference as Federal Reserve chair to deliver an unexpected message: he is not leaving the Fed. When his term expires on May 15, Powell plans to remain on the Board of Governors, citing what he called "unprecedented" legal assaults on the central bank ? a move that could reshape the balance of power inside the Federal Open Market Committee.
The Toronto Stock Exchange closed down for a fifth-straight session Wednesday, with most sectors lower, bar the notable exception of Energy as Scotiabank's Derek Holt said market participants are "chasing higher oil prices oil prices" that are up "on a bet that war may be back on, if it ever subsided".
* Fed's most divided policy vote since 1992, with three officials dissenting. * Kevin Warsh set to succeed Powell, but faces resistance to rate cuts. * Rising oil prices and strong capital goods data add to inflation concerns. By Karen Brettell.
BNY Mellon Investment Adviser, Inc. announced today that BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and BNY Mellon Strategic Municipals, Inc. (LEO) have declared a monthly distribution for each Fund's common shares as summarized below. Important Information BNY Mellon Investment Adviser, Inc., the investment adviser for each Fund, is part of BNY Investments.
* Fed holds key interest rate steady. * Data-storage stocks gain after Seagate's (STX) upbeat forecast. * Starbucks (SBUX) up after lifting forecast. * Amazon (AMZN), Alphabet, Meta Platforms (META), Microsoft (MSFT) reporting shortly. By Stephen Culp and Niket Nishant.
US equity indexes fell ahead of Wednesday's close as crude oil futures and government bond yields rose amid concern that no end is in sight for the Iran war. The Federal Open Market Committee maintained its target rate at a policy meeting, but beneath that outcome, the level of dissent was, reportedly, the highest since 1992.
Financial stocks were mixed in late Wednesday afternoon trading, with the NYSE Financial Index decreasing 0.2% and the State Street Financial Select Sector SPDR ETF up 0.1%. The Philadelphia Housing Index was falling 1.5%, and the State Street Real Estate Select Sector SPDR ETF was down 0.9%. Bitcoin was declining 1.4% to $75,268.8, and the yield for 10-year US Treasuries rose 6.2 basis points ...
Most Latin American stocks and currencies fell on Wednesday after the U.S. Federal Reserve flagged inflation risks at the end of its two-day policy meeting, prompting investors to price in potential ...
The Federal Reserve kept its benchmark lending rate steady on Wednesday, saying the Middle East conflict is fueling uncertainty around the US economic outlook. The central bank's Federal Open Market Committee left interest rates unchanged in a range of 3.50% to 3.75%, in line with Wall Street's expectations.
* Wall Street choppy, dollar rises after Fed holds rates steady. * Fed shows three dissents on easing bias, one dissenter favored a cut now. * Microsoft (MSFT), Alphabet, Amazon (AMZN) and Meta earnings due. * Oil prices rally on fears of extended U.S. blockade of Iran. By Sin?ad Carew and Elizabeth Howcroft.
Federal Reserve Chair Jerome Powell said on Wednesday that the U.S. economy has been "quite resilient" in the face of the Iran war energy shock, and is likely to keep growing at more than 2% this year because of solid consumer spending and data center investment. "Growth is really solid across our economy.
Financial stocks were mixed in late Wednesday afternoon trading, with the NYSE Financial Index decreasing 0.2% and the State Street Financial Select Sector SPDR ETF up 0.1%. The Philadelphia Housing Index was falling 1.5%, and the State Street Real Estate Select Sector SPDR ETF was down 0.9%. Bitcoin was declining 1.4% to $75,268.8, and the yield for 10-year US Treasuries rose 6.2 basis points ...
U.S. Federal Reserve Chair Jerome Powell said on Wednesday that he will return to being a Fed governor and will try to support the central bank's prospective next chair, Kevin Warsh, and not try to act as a "shadow chair" who attempts to wield outsized influence over monetary policy.
* Canadian dollar trades in a range of 1.3668 to 1.3710. * BoC leaves key interest rate on hold at 2.25% * Price of oil settles nearly 7% higher. * 2-year yield jumps 15.8 basis points to 3.038% By Fergal Smith.
Federal Reserve Chair Jerome Powell said Wednesday at a press conference that he will remain on the Federal Reserve board for a period of time after his term as chair ends on May 15, noting the recent attacks on the Fed and saying that "the things that have happened really in the last three months I think left me no choice but to stay until I see them through at least that long."
Federal Reserve Chair Jerome Powell said that he will leave the U.S. central bank when "I think it's appropriate to do so," and said that this reflects his concern about the series of legal attacks on the Fed that threaten its ability to conduct monetary policy.
Federal Reserve Chair Jerome Powell said on Wednesday he will stay on as a central bank governor for an undetermined period of time when his leadership term ends next month, amid hopes that ongoing political attacks on the institution will start to settle down.
* Trump urges Iran to sign a deal and discusses prolonged blockade. * Traders stick to bets the Fed will leave rates on hold well into next year. * Total gold demand up 2% y/y in Q1, WGC says. By Ashitha Shivaprasad.
The Federal Reserve kept its benchmark lending rate steady on Wednesday, saying the Middle East conflict is fueling uncertainty around the US economic outlook. The central bank's Federal Open Market Committee left interest rates unchanged in a range of 3.50% to 3.75%, in line with Wall Street's expectations.
The Federal Reserve held the benchmark federal funds rate at 3.50-3.75% on Wednesday, in what is widely expected to be Chair Jerome Powell?s final policy decision before passing leadership to Kevin Warsh on May 15. Governor Stephen Miran again dissented in favor of a quarter-point cut.
Housing starts rose by 10.8% to a 1.502 million annual rate in March, above expectations, with single-family housing starts and multi-family starts both higher. Building permits fell by 10.8% to a 1.372 million rate in March. The number of homes under construction and completions were little changed in the month.
The Federal Reserve held its policy rate steady on Wednesday, as was widely expected, citing rising concerns about inflation in what is likely to be Jay Powell's last meeting as chair.
* Fed keeps rates in 3.50%-3.75% range. * Oil prices rise, boosting dollar demand as safe haven. * Yen inches towards intervention levels. By Chibuike Oguh. The dollar strengthened against major currencies on Wednesday after the U.S. Federal Reserve left interest rates unchanged, with markets also on edge over as the U.S.-Israel war with Iran shows little sign of easing.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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