Tag: Monetary Policy
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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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Opinion: Fed officials were slow to fight inflation. Now they may be too easy on it.
[ad_1] Political pressures on the U.S. Federal Reserve and President Joe Biden’s economic agenda have delivered a painful blow — inflation still above the Fed’s 2% target, high interest rates and declining living standards. COVID-induced supply chain disruptions can be blamed for about half of the surge in inflation that began in early 2021. Most of the…
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Treasury yields fall after soft European data
[ad_1] Bond yields fell on Monday after weak economic data from Europe and as traders await central bank policy decisions this week. What’s happening The yield on the 2-year Treasury TMUBMUSD02Y, 4.824% slipped by 2.1 basis points to 4.837%. Yields move in the opposite direction to prices. The yield on the 10-year Treasury TMUBMUSD10Y, 3.800%…
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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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Stocks are making a run for record territory. Will the Fed end its rate hikes anyway?
[ad_1] Stocks have been closing in on record territory, which isn’t supposed to be a key worry of the Federal Reserve. But after a dizzying three years of pandemic extremes, the stock rally has become a source of market angst, right as the Fed attempts a final chapter in its epic rate hiking saga. “There…
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Are we still going to have a recession? Maybe next year.
[ad_1] A U.S. recession is still possible, economists say. They’re just not entirely sure when. “I think that a gradual slowdown will still result in a recession,” said senior economist Ben Ayers of Nationwide. “The timing of this is highly difficult to pin down.” Ayers is far from alone. Many Wall Street economists think a…
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China keeps benchmark lending rates unchanged
[ad_1] China’s benchmark lending rates were kept unchanged, as expected on Thursday, following a hold of policy rates earlier this month. However, economists say Beijing will need to ramp up support to shore up the country’s sputtering economy. The one-year loan prime rate was held steady at 3.55%, while the five-year LPR was unchanged at…
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Looking for a mortgage, car loan, or boost for your credit-card limit? More lenders are saying no.
[ad_1] A rising number of consumers say lenders are rejecting their loan applications. What’s more, record-breaking shares of people expect lenders to keep saying no on mortgage applications, car loans and bids for credit card increases well into 2024. This is according to new survey data out from the Federal Reserve Bank of New York.…
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RBA has left door ajar to raise rates further, depending on data
[ad_1] SYDNEY — The prospect of a further interest-rate increase by the Reserve Bank of Australia as early as August remains high, with minutes of the central bank’s July 4 policy meeting warning that even tighter policy settings may be required to bring down inflation. The RBA left the official cash rate on hold at…
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China’s central bank adds liquidity at unchanged policy rates
[ad_1] China’s central bank on Monday injected liquidity into the nation’s financial system via its monetary instruments at unchanged interest rates, signaling a hold on benchmark lending rates this month after June’s cuts. The People’s Bank of China injected 103 billion yuan ($14.42 billion) of liquidity via the one-year medium-term lending facility at an interest…