- Federal Reserve interest rate policy has moved beyond the level called for by commonly followed monetary policy rules, according to a report released on Thursday by the Cleveland Fed, pointing to how hawkish the central bank has become in its inflation battle.
- Federal Reserve Vice Chair of Supervision Michael Barr on Thursday signaled that he is among U.S. central bankers backing a slowdown in the pace of interest rate hikes as soon as the Fed's Dec. 13-14 meeting. "Now we're at a point, since I believe we're in restrictive territory, that we can get to a sufficiently restrictive rate at a slower pace," Barr said at the American Enterprise Institute.
It's no secret the COVID-19 pandemic and other world events like the Russia-Ukraine war have shot ramifications throughout the global economy. But on Wednesday, Amazon Inc CEO Andy Jassy said that he believes the economic outlook to be more "uncertain" than previously thought at The New York Times' DealBook event.
With central banks ratcheting up their response to a global inflation shock, debate is shifting from when they'll win the war to whether faster rising prices are here to stay in a supply-constrained world.
* Canadian dollar weakens 0.2% against the greenback. * Canadian manufacturing PMI rises to 49.6 in November. * Investors cut Bank of Canada rate hike bets. * 10-year yield falls to lowest since Aug. 18. By Fergal Smith.
With central banks ratcheting up their response to a global inflation shock, debate is shifting from when they'll win the war to whether faster rising prices are here to stay in a supply-constrained world.
- The U.S. Federal Reserve's regulatory chief said on Thursday the central bank is exploring adjustments to bank capital requirements, noting the inability of supervisors to predict unexpected shocks would argue for higher overall capital levels.
The U.S. Federal Reserve's regulatory chief said on Thursday the central bank is exploring adjustments to bank capital requirements, noting the inability of supervisors to predict unexpected shocks would argue for higher overall capital levels.
Moderating inflation in October pushed
U.S. Treasury yields down further on Thursday after a strong rally the day
before when Federal Reserve Chairman Jerome Powell said the U.S. central bank
could ...
-Austan Goolsbee, a former economic advisor to the Obama White House, will take over as the president of the Federal Reserve Bank of Chicago when its current chief Charles Evans exits in January under the central bank's age-based mandatory retirement rules. Goolsbee, 53, chaired the Council of Economic Advisors under Democratic President Barack Obama.
Netflix, Inc was climbing over 3.5% higher on Thursday in bullish continuation after a 9% surge on Wednesday caused the stock to burst up through the $300 mark. The move higher was propelled by Fed Chair Jerome Powell, who suggested the central bank could begin easing back on its interest rate hikes starting as early as next month when he spoke at the Brookings Institution on Wednesday.
-New York Federal Reserve President John Williams reiterated on Thursday in a television interview his belief that more interest rate rises will be needed to bring down overly high levels of price pressures.
Brazil posted a trade surplus of $6.7 billion in November, official data showed on Thursday, beating a $5 billion surplus expected by economists in a Reuters poll. Exports totaled $28.2 billion in the month, while imports reached $21.5 billion, according to Economy Ministry figures.
What many people saw as an open goal for the Federal Reserve chair on Wednesday, it seems Jerome Powell saw as a potential own goal. Nearly everyone expected him to use his eagerly awaited speech on the economic outlook and the labor market at the Brookings Institution think tank to push back on the significant easing of U.S. financial conditions in recent weeks.
Euro zone yields dropped on Thursday, following U.S. Treasuries, after Federal Reserve chair Jerome Powell signalled the central bank could slow its pace of policy tightening as soon as its December meeting.
* Consumer spending increases 0.8% in October. * Personal income rises 0.7%; saving rate falls to 2.3% * Core PCE price index gains 0.2%; up 5.0% year-on-year. * Weekly jobless claims fall 16,000 to 225,000. By Lucia Mutikani.
-The Federal Reserve should slow the pace of its rate increases in order to assess the impact of its hiking cycle but inflation remains far too high and the central bank's policy will need to be sufficiently restrictive for some time to bring it down, Fed Governor Michelle Bowman said on Thursday.
* Canadian dollar weakens 0.3% against the greenback. * Price of U.S. oil rises 2.9% * Canadian manufacturing PMI rises to 49.6 in November. * Canadian bond yields ease across curve.
* Gold highest since early August, futures surge over 3% * Silver climbs more than 2% to highest since May. * Dollar drops to near four-month low. * Focus on U.S. non-farm payrolls data due on Friday. By Seher Dareen.
U.S. construction spending fell in October, pulled down by continued weakness in single-family homebuilding amid higher mortgage rates. The Commerce Department said on Thursday that construction spending dropped 0.3% in October after gaining 0.1% in September. Spending on private construction projects dropped 0.5% after being unchanged in September.
Dibbs taps users of its blockchain-based collectibles marketplace to uncover first-of-its-kind insights on user sentiment toward NFT technology Dibbs, the world?s onramp to Web3, today released findings from the industry?s first NFT Sentiment Report, which surveyed hundreds of NFT adopters to understand consumer sentiment around NFTs today and into the future.
Tesla, Inc rallied 7.67% Wednesday, with most of the bullish price action taking place after Fed Chair Jerome Powell began to speak at the Brookings Institution. The S&P 500 surged 3.15% after Powell suggested the central bank could begin easing back on its interest rate hikes starting as early as next month, which pulled up many growth stocks.
U.S. manufacturing activity contracted for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, but a measure of prices paid by factories for inputs fell for a second straight month, supporting views that inflation could continue trending lower. The Institute for Supply Management said on Thursday that its manufacturing PMI fell to 49.0 last month.
BlackRock Investment Institute is not "chasing" the stock rally triggered by Federal Reserve chief Jerome Powell's latest comments because U.S. interest rates are still likely to stay elevated, its global chief investment strategist said on Thursday.
International Monetary Fund Managing Director Kristalina Georgieva said on Thursday the chance of global growth falling below 2% next year was increasing due to continued effects of the war in Ukraine and simultaneous slowdowns in Europe, China and the United States.
Canadian manufacturing activity weakened for a fourth straight month in November as worries that the economy would slip into recession undercut demand, but the pace of contraction and a measure of inflation pressures eased, data showed on Thursday. The S&P Global Canada Manufacturing Purchasing Managers' Index rose to a seasonally adjusted 49.6 in November from 48.8 in October.
Canadian manufacturing activity weakened for a fourth straight month in November as worries that the economy would slip into recession undercut demand, but the pace of contraction and a measure of inflation pressures eased, data showed on Thursday. The S&P Global Canada Manufacturing Purchasing Managers' Index rose to a seasonally adjusted 49.6 in November from 48.8 in October.
UK public sector organizations can achieve immediate savings on annual support fees for Oracle and SAP products and up to 90% savings on total support costs, enabling the optimization, evolution and transformation of citizen services Rimini Street (RMNI), Inc., a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products,...
Brazil's central bank intervened in the foreign exchange market on Thursday, selling $2 billion in the spot market with a repurchase agreement, it said in a statement on its website.
U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it faces rising headwinds from the Federal Reserve's aggressive monetary policy tightening. The labor market, the economy's other pillar of support, continues to show resilience.
U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it navigates a high interest rate environment. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.8% after an unrevised 0.6% increase in September, the Commerce Department said on Thursday.
Newtek Business Services Corp. (NEWT) today announced that it has received conditional approval from Office of the Comptroller of the Currency to complete its acquisition of the National Bank of New York City.
The Bank of Canada will hike its key interest rate by another 50 basis points to 4.25% on Dec. 7, according to a slim majority of economists in a Reuters poll that suggests the central bank will then hit pause on a nine-month tightening campaign.
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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