Money: Fed's Powell affirms rate cut view; see U.S. economy humming - PressFrom - United Kingdom
  •   
  •   

MoneyFed's Powell affirms rate cut view; see U.S. economy humming

05:50  12 july  2019
05:50  12 july  2019 Source:   reuters.com

Plans to increase the higher rate tax band to €50,000 would cost €2.3bn, says Government tax group

Plans to increase the higher rate tax band to €50,000 would cost €2.3bn, says Government tax group Plans to increase the higher rate tax band to €50,000 would cost €2.3bn, says Government tax group

Federal Reserve Chairman Jerome Powell said Wednesday that downside risks associated with trade tensions and low inflation are looming over the U . S . economy , laying the When exactly a rate cut will occur, and by how much, is still up in the air. Powell ’ s comments, however, reaffirm the market’ s

Federal Reserve Chairman Jerome Powell on Wednesday set the stage for the rate cut this month, as records from policymakers' latest meeting showed "Uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U . S . outlook," Powell said.

Fed's Powell affirms rate cut view; see U.S. economy humming © Reuters/LEAH MILLIS Federal Reserve Board Chairman Jerome Powell testifies on Capitol Hill in Washington DC

ATLANTA/VICTOR, Idaho (Reuters) - As Federal Reserve Chair Jerome Powell kept the focus Thursday on global risks that could trigger a Fed rate cut in coming weeks, his colleagues from regional Fed districts painted a rosier picture of continued U.S. economic growth and a solid business outlook.

The contrasting remarks show the dilemma the Fed faces as it heads towards an end-of-month monetary policy meeting now broadly expected to end with a rate reduction.

Video: Fed's Powell on the biggest potential concerns for the US economy (Fox Business)

Gig Economy Workers Would Prefer Security Over Higher Earnings, Study Finds

Gig Economy Workers Would Prefer Security Over Higher Earnings, Study Finds Gig economy work is a necessity rather than a choice and those reliant on it would be willing to earn less in exchange for more job security, according to a study of workers in the U.K. and the U.S.

Federal Reserve Chairman Jerome Powell holds a news conference following a two-day Federal Open Market At the same time, in the view of Fed officials, Trump' s own policies - including higher With investors in contracts linked to the Fed ' s targeted overnight lending rate putting the probability of

Fed officials at their June policy meeting signaled those concerns might warrant lower rates , and Powell will present his remarks and take questions from members of the U . S . House of That added a full additional rate cut to the one investors already had expected, and added market pressure to the

On one hand - emphasized by Powell in Congressional hearings Wednesday and Thursday and seconded by the influential chief of the New York Fed and Fed Governor Lael Brainard -- global trade and economic risks have put a dent in investment, inflation is well below the Fed's 2% target, and the U.S. expansion may need a shot in the arm.

But as they polled businesses in their districts, Atlanta Federal Reserve Bank President Raphael Bostic and Richmond Federal Reserve Bank President Thomas Barkin saw an economy still humming, and no clear need for the Fed to ease monetary policy.

Samsung’s new Galaxy Watch Active will have ECG heart rate tracking, report claims

Samsung’s new Galaxy Watch Active will have ECG heart rate tracking, report claims But the feature won’t go live until 2020

Fed officials at their June policy meeting signaled those concerns might warrant lower rates , and Powell will present his remarks and take questions from members of the U . S . House of That added a full additional rate cut to the one investors already had expected, and added market pressure to the

CHICAGO — The Federal Reserve chairman, Jerome H. Powell , said on Tuesday that the central bank was prepared to act to sustain the economic expansion if President Trump’ s trade war weakened the economy . His remarks sent stocks soaring as investors predicted a cut in interest rates .

"I am not seeing the storm clouds actually generate a storm yet," said Bostic, who described himself as skeptical of the need to cut interest rates right now. "With very few exceptions businesses are telling me the economy is performing as strong as it was. They are not seeing weaknesses in consumer engagement. And they are not materially changing their plans."

Fed's Powell affirms rate cut view; see U.S. economy humming © Reuters/CHRISTOPHER ALUKA BERRY Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel discussion in Atlanta

"I've been out in the last couple weeks and I'm talking to business people," Barkin said on Thursday. "They are not yet leaning back...They are not cutting jobs, They are not cutting investments that have already been underway. But they are cautious...They haven't stopped, they've just slowed."

More detail about on-the-ground business sentiment may come next week when the Fed releases its latest Beige Book compendium of anecdotal information from the 12 Fed districts.

Bitcoin extends losses after Fed chief urges halt to Facebook's crypto project

Bitcoin extends losses after Fed chief urges halt to Facebook's crypto project Bitcoin extends losses after Fed chief urges halt to Facebook's crypto project

NEW YORK, July 10 (Reuters) - Treasury yields dropped after Federal Reserve Chair Jerome Powell said that trade and global growth concerns continue to weigh on the U . S . economy in remarks published Wednesday, bolstering expectations of an interest rate cut in July.

Federal Reserve Chairman Jerome Powell on Wednesday set the stage for the first U . S . interest Minutes of the Fed ' s June rate -setting meeting, released shortly after Powell concluded several "We really have learned though that the economy can sustain much lower unemployment than we thought

Powell has pointed to a number of national surveys as evidence business confidence took a hit recently, particularly in May after President Donald Trump threatened to impose tariffs on Mexican imports unless his demands about tougher immigration enforcement were met.

The tariffs were not levied, but "it was a bit of a confidence shock, Powell told the Senate Banking Committee.

In Albany, New York Thursday, New York Fed President John Williams, added his voice in support of a rate cut, citing uncertainties around trade and global growth and soft inflation. "The arguments, for adding policy accommodation have strengthened over time."

Gallery: 11 mind-blowing facts about the US economy (Business Insider)

Brainard, in a separate appearance in Scranton, Pennsylvania, piled on. "Taking into account the downside risks at a time when inflation is on the soft side would argue for softening the expected path of monetary policy according to basic principles of risk management," she told a community banking group.

Neither Barkin nor Bostic have a vote this year on the Fed's rate-setting committee. But they will participate in the debate when the Fed meets in three weeks in a session widely expected to reduce the Fed's overnight target interest rate by at least a quarter of a percentage point.

London house prices fall at fastest rate in a decade

London house prices fall at fastest rate in a decade London house prices fall at fastest rate in a decade

Powell says trade uncertainties and worries about global growth continue to weigh on the U . S . economy , which is likely to lead the central bank to lower rates soon.

Powell contrasted the Fed ' s "baseline outlook" of continued U . S . growth. Image used for illustrative purpose. Workers assemble vehicles at a plant of At the Fed ' s last policy meeting in mid-June, eight of the 17 policymakers saw the need for at least one rate cut by year' s end, and Powell told reporters

Investors expect that cut with near 100% certainty.

Powell, in appearances on Capitol Hill this week, bolstered expectations such a cut is coming, and focused on the need to protect the United States against fallout from a weak global economy.

Fed's Powell affirms rate cut view; see U.S. economy humming © Thomson Reuters A man displays US dollar notes after withdrawing cash from a bank in Harare, Zimbabwe, July 9, 2019. REUTERS/Philimon Bulawayo

Neither Barkin nor Bostic ruled out supporting a rate cut, which, according to minutes of the Fed's June meeting, has drawn support for a variety of different reasons -- both the global tensions Powell has focused upon, as well as weak inflation and a sense that the Fed had unintentionally set policy too tight with its four interest rate increases last year.

At least a couple regional Fed bank presidents do support a rate cut, including St. Louis Fed Bank President James Bullard, and Minneapolis Fed President Neel Kashkari who on Thursday said he is advocating the "stronger medicine" of a half-percent rate cut. Both men say a rate cut is needed to boost inflation expectations.

But other regional bank presidents have in recent days said they were struggling to justify lower rates at a time when unemployment is near a historic low, at 3.7%, and job growth continues apace.

Bostic said that even recent weak inflation data may not be as worrisome as it might seem.

Europe Dived Into Negative Rates and Now It Can't Find a Way Out

Europe Dived Into Negative Rates and Now It Can't Find a Way Out Europe Dived Into Negative Rates and Now It Can't Find a Way Out

Economists suggested that Powell ' s message made a quarter-point rate cut a virtual certainty at the Fed ' s meeting this month, with many Paul Ashworth, chief U . S . economist at Capital Economics, said he thinks economic growth will slow below a 1 percent annual rate in the second half of this year

The Fed expects unemployment to remain low and inflation to gradually increase, but Mr. Powell said that “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U . S . economic outlook.” The Fed , which has not cut rates since slashing

Fed's Powell affirms rate cut view; see U.S. economy humming © 2019 Getty Images NEW YORK, NEW YORK - JULY 02: People walk by the New York Stock Exchange (NYSE) on July 02, 2019 in New York City. Markets were down slightly in morning trading as investors grow increasingly concerned about the lack of progress in trade negotiations between the U.S. and China. (Photo by Spencer Platt/Getty Images)

With the Fed's current preferred measure of inflation running at 1.6%, below the 2% target, some policymakers argue the central bank needs to do more or risk losing public trust that it takes the target seriously.

"If the public comes to believe that a persistent downside miss to the 2% goal means the FOMC is not committed to that goal, then there is a problem," Bostic said.

But he added that his analysis of inflation expectations, based on surveys of professional forecasters and business executives, left him unconvinced that expectations are slipping. In addition, less "noisy" measures of actual inflation, which strip out the most volatile terms, indicate "that right now we are very close to our 2% price stability mandate."

MSN are empowering Women In Sport this summer. Find out more about our campaign and the charity fighting to promote the transformational and lifelong rewards of exercise for women and girls in the UK here.

Wage growth nears 11-year high but hiring slows.
Wage growth nears 11-year high but hiring slows

—   Share news in the SOC. Networks

Topical videos:

usr: 0
This is interesting!