Federal Reserve snubs Trump by refusing to cut interest rates
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Showing posts with label Interest Rates. Show all posts
Showing posts with label Interest Rates. Show all posts
Wednesday, May 1, 2019
Wednesday, February 21, 2018
US Economy: Dow Jones drops another 166.97 points today after a loss of 254 yesterday.
U.S. stocks on Wednesday ended a tumultuous session firmly lower after
minutes from the Federal Reserve’s most recent policy-setting meeting
sparked a fresh wave of volatility, as bond rates clambered higher and
the dollar strengthened, weighing on equities.
Rea more: Dow gives up 300-point gain to end lower as bond yields rise after Fed minutes - MarketWatch
Rea more: Dow gives up 300-point gain to end lower as bond yields rise after Fed minutes - MarketWatch
Saturday, October 7, 2017
Brexit: Britain dips to bottom of G7 economic growth table
 |
| Brexit: Too Little, Too Late |
The pound dropped as much as 0.7 per cent against the euro on the back of weaker-than-expected GDP figures, a report that London’s house prices fell for the first time in nine years, and higher levels of consumer debt.
But despite the poor economic data, Mark Carney hinted that interest rates were still likely to rise in November. “If the economy continues on the track that it’s been on, and all indications are that it is, in the relatively near term we can expect that interest rates would increase somewhat,” the Bank of England governor said recently..
Some economists who think the BoE will raise interest rates from 0.25 per cent to 0.5 per cent at its Monetary Policy Committee meeting in November were more cautious following Recent data release. Alan Clarke, of Scotiabank, said: “I’m sticking to my call for a hike in November, but I’m much more nervous now than I was before this data release.”
Having been the fastest-growing economy in the G7 on the eve of the EU referendum, new figures from the Office for National Statistics in Britain showed UK growth below the US, Japan, Germany, France, Italy and Canada.
EU-Digest
Monday, January 25, 2016
Global Economic Change: Truly a New Economic Order - by Uwe Bott,
During the past few weeks, global financial markets have reacted with great volatility. The two key drivers are increasingly bad economic news coming out of China as well as the anticipated increase in U.S. interest rates, the first such rise since 2006.
To cut right to the chase: The Federal Open Market Committee of the Federal Reserve Bank of the United States should not raise intere rates!
Central bankers who favor an increase in U.S. interest rates overlook that they no longer live in their parents’ world economy. As a matter of fact, too many policy makers and central bankers across the globe
still live in the 20th century.
They have not yet realized that we live in a radically altered world economy that will shape the 21st century for some time to come. That tardy realization is not just unfortunate. It is a bad omen.
The acumen of central bankers has to be put into serious question. They celebrated themselves for accomplishing the “great moderation” in inflationary expectations over the past decades or so, even though that outcome had next to nothing to do with central banks’ management ofmonetary policy.
Still, there are many observers who argue that an increase is long overdue. After all, rates have been near zero since the financial crisis of 2008 and surely the U.S. economy is doing better, even if there is still a lot of room for improvement. Isn’t interest rate policy suppose to be anticipatory in nature?
That statement is both right and wrong at the same time. Yes,interest rate policy is to be anticipatory — and not reactive. But that alone would ignore the fundamental structural changes in the world economy.
During the past few weeks, global financial markets have reacted wigreat volatility. The two key drivers are increasingly bad economic news coming out of China as well as the anticipated increase in U.S.interest rates, the first such rise since 2006.
To cut right to the chase: The Federal Open Market Committee of the Federal Reserve Bank of the United States should not raise interest rates!
Central bankers who favor an increase in U.S. interest rates overlook that they no longer live in their parents’ world economy. As a matter of fact, too many policy makers and central bankers across the globe
still live in the 20th century.
They have not yet realized that we live in a radically altered worldeconomy that will shape the 21st century for some time to come. That tardy realization is not just unfortunate. It is a bad omen.
The acumen of central bankers has to be put into serious question. They celebrated themselves for accomplishing the “great moderation” in\inflationary expectations over the past decades or so, even though that outcome had next to nothing to do with central banks’ management of monetary policy.
Still, there are many observers who argue that an increase is longoverdue. After all, rates have been near zero since the financial crisis of 2008 and surely the U.S. economy is doing better, even if there is still a lot of room for improvement. Isn’t interest rate policy supposed to be anticipatory in nature?
That statement is both right and wrong at the same time. Yes,interest rate policy is to be anticipatory — and not reactive. But that alone would ignore the fundamental structural changes in the world economy.
Read more: Truly a New Economic Order - The Globalist
To cut right to the chase: The Federal Open Market Committee of the Federal Reserve Bank of the United States should not raise intere rates!
Central bankers who favor an increase in U.S. interest rates overlook that they no longer live in their parents’ world economy. As a matter of fact, too many policy makers and central bankers across the globe
still live in the 20th century.
They have not yet realized that we live in a radically altered world economy that will shape the 21st century for some time to come. That tardy realization is not just unfortunate. It is a bad omen.
The acumen of central bankers has to be put into serious question. They celebrated themselves for accomplishing the “great moderation” in inflationary expectations over the past decades or so, even though that outcome had next to nothing to do with central banks’ management ofmonetary policy.
Still, there are many observers who argue that an increase is long overdue. After all, rates have been near zero since the financial crisis of 2008 and surely the U.S. economy is doing better, even if there is still a lot of room for improvement. Isn’t interest rate policy suppose to be anticipatory in nature?
That statement is both right and wrong at the same time. Yes,interest rate policy is to be anticipatory — and not reactive. But that alone would ignore the fundamental structural changes in the world economy.
During the past few weeks, global financial markets have reacted wigreat volatility. The two key drivers are increasingly bad economic news coming out of China as well as the anticipated increase in U.S.interest rates, the first such rise since 2006.
To cut right to the chase: The Federal Open Market Committee of the Federal Reserve Bank of the United States should not raise interest rates!
Central bankers who favor an increase in U.S. interest rates overlook that they no longer live in their parents’ world economy. As a matter of fact, too many policy makers and central bankers across the globe
still live in the 20th century.
They have not yet realized that we live in a radically altered worldeconomy that will shape the 21st century for some time to come. That tardy realization is not just unfortunate. It is a bad omen.
The acumen of central bankers has to be put into serious question. They celebrated themselves for accomplishing the “great moderation” in\inflationary expectations over the past decades or so, even though that outcome had next to nothing to do with central banks’ management of monetary policy.
Still, there are many observers who argue that an increase is longoverdue. After all, rates have been near zero since the financial crisis of 2008 and surely the U.S. economy is doing better, even if there is still a lot of room for improvement. Isn’t interest rate policy supposed to be anticipatory in nature?
That statement is both right and wrong at the same time. Yes,interest rate policy is to be anticipatory — and not reactive. But that alone would ignore the fundamental structural changes in the world economy.
Read more: Truly a New Economic Order - The Globalist
Wednesday, December 16, 2015
Global Economy: The global impact of the US interest rate rise - by Kamal Ahmed
When America stirs, the rest of the world takes notice.
Rising US interest rates could mean higher debt repayments for emerging market governments and businesses - as the amount owed is denominated in dollars.
And with higher interest rates in America, investment capital will be encouraged across the Atlantic and away from Asia in the hunt for better returns.
That could affect Europe as well.
On the upside, the stronger dollar which has followed the rise might be good for European and Asian economies as it means exports to America are cheaper.
Read More: The global impact of the US interest rate rise - BBC News
Rising US interest rates could mean higher debt repayments for emerging market governments and businesses - as the amount owed is denominated in dollars.
And with higher interest rates in America, investment capital will be encouraged across the Atlantic and away from Asia in the hunt for better returns.
That could affect Europe as well.
On the upside, the stronger dollar which has followed the rise might be good for European and Asian economies as it means exports to America are cheaper.
Read More: The global impact of the US interest rate rise - BBC News
Saturday, November 7, 2015
US Federal Reserve is right to raise interest rates, yet risk remains - by Larry Elliott
Janet Yellen’s finger is poised over the button. The US Federal Reserve will finally take the plunge and raise interest rates when it meets again just before Christmas. The days when borrowing costs were kept at zero are coming to an end.
That was the interpretation Wall Street was putting on Friday’s news that the world’s biggest economy created 271,000 extra jobs in October and, barring a big domestic or global crisis in the next month or so, it is almost certainly the correct one.
US looks set for December interest rate rise after jobs boost
Read more
The reason for the heightened speculation about a Fed tightening was that the employment news did not so much exceed expectations as smash them.
After a couple of months in which employment growth had been disappointing, the markets were betting on non-farm payrolls – all sectors barring agriculture – increasing by 185,000 last month.
The number of jobs created in September was revised down a bit, but that was more than compensated for by the October increase and by two other pieces of information that will make the Fed think the labour market is getting stronger.
First, the unemployment rate edged down from 5.1% to 5%, within the range that the Fed categorises as full employment. Second, hourly wages were up by 0.4%, taking the year-on-year increase to 2.5%. That might not sound too impressive, and indeed is quite poor for a US economy now into the seventh year of recovery, but it is the strongest annual increase since 2009.
If the Fed moves next month, the search will be on for the next major central bank to raise rates. Given that the European Central Bank and the Bank of Japan are still increasing the amount of stimulus they are providing, every pronouncement by members of the Bank of England’s monetary policy committee will be scrutinized.
Read more: US Federal Reserve is right to raise interest rates, yet risk remains | Business | The Guardian
That was the interpretation Wall Street was putting on Friday’s news that the world’s biggest economy created 271,000 extra jobs in October and, barring a big domestic or global crisis in the next month or so, it is almost certainly the correct one.
US looks set for December interest rate rise after jobs boost
Read more
The reason for the heightened speculation about a Fed tightening was that the employment news did not so much exceed expectations as smash them.
After a couple of months in which employment growth had been disappointing, the markets were betting on non-farm payrolls – all sectors barring agriculture – increasing by 185,000 last month.
The number of jobs created in September was revised down a bit, but that was more than compensated for by the October increase and by two other pieces of information that will make the Fed think the labour market is getting stronger.
First, the unemployment rate edged down from 5.1% to 5%, within the range that the Fed categorises as full employment. Second, hourly wages were up by 0.4%, taking the year-on-year increase to 2.5%. That might not sound too impressive, and indeed is quite poor for a US economy now into the seventh year of recovery, but it is the strongest annual increase since 2009.
If the Fed moves next month, the search will be on for the next major central bank to raise rates. Given that the European Central Bank and the Bank of Japan are still increasing the amount of stimulus they are providing, every pronouncement by members of the Bank of England’s monetary policy committee will be scrutinized.
Read more: US Federal Reserve is right to raise interest rates, yet risk remains | Business | The Guardian
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