Tag: fed
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Fed no longer foresees a U.S. recession — and other things we learned from Powell’s press conference
[ad_1] The Federal Reserve on Wednesday raised its benchmark interest rate to a range of 5.25% to 5.5%, the highest level in 22 years, in order to combat “elevated” inflation. With financial markets and economists widely expecting that rate move, the focus was on Fed Chair Jerome Powell’s one-hour session with reporters, which followed. Here…
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Everyone thinks Fed’s rate hike next week will be the last one — except the Fed
[ad_1] Wall Street economists seem convinced that the Federal Reserve will raise its benchmark interest rate by 25 basis points Wednesday and that this increase will turn out to be the final hike of this cycle. But they also don’t expect to hear Fed Chair Jerome Powell say so, at least not yet. “While we…
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Morgan Stanley credits Bidenomics in lifting its U.S. economic-growth outlook
[ad_1] At least one major investment bank has bought into Bidenomics. President Joe Biden’s Infrastructure Investment and Jobs Act has seeped into the domestic economy, “driving a boom in large-scale infrastructure,” wrote Ellen Zentner, chief U.S. economist for Morgan Stanley, in a research note out late this week. Plus, she wrote, “manufacturing construction has shown broad…
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Fed’s Waller, unimpressed by inflation data, calls for two more rate hikes this year
[ad_1] Federal Reserve Board Gov. Christopher Waller said Thursday he was not swayed by June’s benign consumer inflation data, and said he wants the central bank to go ahead with two more 25-basis-point rate hikes this year. “I see two more 25-basis-point hikes in the target range over the four remaining meetings this year as…
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Fed’s Beige Book points to continued slow economic growth
[ad_1] The Federal Reserve’s business contacts across the U.S. reported that economic activity increased only slightly in late May and June and the slow growth was expected to continue, according to the central bank’s latest Beige Book survey released Wednesday. The report, basically a collection of anecdotes from business contacts, is prepared for policymakers ahead…
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Opinion: The Fed’s mission impossible: Drive the economy from the back seat
[ad_1] The U.S. Federal Reserve is talking up rate-hike expectations even when inflation and threats to inflation are slowing markedly. Investors should recognize that the Fed has a poor forecasting record and officials are likely to relent on their hawkish rhetoric as inflation subsides. In 2013, then-president of the Minneapolis Fed, Naryana Kocherlakota, used a pithy…
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S&P 500 is most likely going to correct back to 4,100, Mizuho warns market bulls
[ad_1] It isn’t a bullish sign for the stock market that the Federal Reserve is still chasing “an elusive soft landing” for the economy more than a year into its battle against high inflation, according to economists to Mizuho Securities. The Fed already lifted its benchmark interest rate to a 5%-5.25% range in roughly the…
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Labor is ‘too hot’ for Fed, Stifel’s Bannister says. These industries hold the ‘defensive’ stocks in case of a recession.
[ad_1] Stifel’s chief equity strategist Barry Bannister may turn defensive in U.S. stocks at the end of this year to brace for a potential economic downturn in early 2024, as the Federal Reserve may need to weaken the labor market that looks “too hot” to bring down stubbornly high inflation. “We do not see inflation…
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U.S. bank lending falls in latest week, Fed says
[ad_1] The numbers: Commercial and industrial loans — a key driver economic driver — fell by $7.9 billion to $2.75 trillion in the week ended June 28, the Federal Reserve said Friday. C&I loans hit a peak of $2.82 trillion in mid-March, right before the collapse of Silicon Valley Bank. Key details: Total bank deposits…
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Fed’s Williams: Incoming data points to need for higher interest rates
[ad_1] U.S. economic data in recent weeks points to the need for higher interest rates, said New York Federal Reserve President John Williams on Wednesday. “I think we have more work to do,” Williams said, during a moderated discussion at the annual meeting of the Central Bank Research Association. “I think the incoming data support…