The proposed tariff plan announced by former President Trump has reignited debates about trade policy and its ripple effects on the economy and financial markets. Tariffs typically increase costs for businesses that rely on imported goods, leading to potential price hikes for consumers. This can suppress demand for products and impact revenue growth for companies […]
Read MoreFeatured Content The Federal Funds Effective Rate is the primary interest rate in the U.S., influencing various aspects of the economy and the stock market. Set by the Federal Reserve, this rate dictates the interest banks charge each other for overnight loans, impacting everything from credit card rates to mortgage costs. Currently, the Federal Reserve […]
Read MoreFeatured Content The recent rise in oil and food prices has become a crucial topic for stock investors in the United States. Oil prices have surged due to global supply issues, geopolitical tensions, and production cuts. Higher oil costs impact not only energy companies but also transportation, manufacturing, and agriculture, where energy is essential for […]
Read MoreFeatured Content In today’s economic landscape, investors in the United States face three key factors shaping their strategies. The economy is showing resilience, supported by solid consumer spending and easing inflation. The growth rate, recently reported at an annualized 2.8%, indicates that consumers are continuing to spend despite inflationary pressures easing. This environment bodes well […]
Read MoreFeatured Content Economic Update In October, the U.S. labor market saw its weakest growth since December 2020, with non-farm payrolls increasing by only 12,000, far below the 113,000 predicted by economists. This decline is attributed to the impact of hurricanes hitting the southern coast and widespread industrial actions, including a significant strike at Boeing. Revisions […]
Read MoreFeatured Content In October 2024, the U.S. economy added 12,000 nonfarm payroll jobs, a significant decline from September’s revised gain of 223,000. This slowdown is primarily attributed to disruptions from Hurricanes Helene and Milton, which affected the Southeast and Florida, and labor strikes, notably in the aerospace sector. Despite these challenges, the unemployment rate remained […]
Read MoreFeatured Content The latest U.S. economic indicators reveal moderate growth and key data releases expected this week. The economy expanded by 2.8% in Q3, slightly below the projected 3.1%, indicating resilience yet a cautious outlook. This aligns with ongoing high-interest rates aimed at curbing inflation. Key indicators due for release include the Fed’s preferred inflation […]
Read MoreThe Federal Reserve (Fed) plays a critical role in the U.S. economy by adjusting interest rates, a tool used to control inflation, manage employment levels, and stabilize financial markets. The decision to raise or lower interest rates can have far-reaching effects on everything from consumer spending to business investment. Understanding why the Fed adjusts rates […]
Read More(Bloomberg) — The US dollar has erased more than half of this year’s gains amid growing expectations the Federal Reserve will temper its aggressive rate hikes, and as optimism grows over China’s reopening plans. The Bloomberg Dollar Spot Index has pared its 2022 advance to about 7%, after gaining as much as 16% earlier, as […]
Read More(Bloomberg) — A key gauge of US consumer prices posted the second-smallest increase this year while spending accelerated, offering hope that the Federal Reserve’s interest-rate hikes are cooling inflation without sparking a recession. The personal consumption expenditures price index excluding food and energy, which Fed Chair Jerome Powell stressed this week is a more accurate […]
Read More(Bloomberg) — The Federal Reserve needs to raise interest rates significantly higher, to perhaps 6%, to reduce inflation, influential monetary economist John Taylor said on Friday. He told an economic conference in New York that rates were still “quite low” when measured in real, inflation-adjusted terms or when compared to monetary policy rules like the […]
Read More(Bloomberg) — Bond traders are declaring victory over the Federal Reserve’s war on inflation after it slowed last month to a weaker pace than economist forecasts. A part of the yield curve that Federal Reserve Chair Jerome Powell watches closely to monitor recession risks inverted for the first time since the pandemic hit in early […]
Read More(Bloomberg) — The Federal Reserve looks set to deliver a fourth straight super-sized rate increase with Chair Jerome Powell repeating his resolute message on inflation and opening the door to a downshift — without necessarily pivoting yet. The Federal Open Market Committee is expected to raise rates by 75 basis points on Wednesday to a […]
Read More(Bloomberg) — Federal Reserve Bank of St. Louis President James Bullard said he expects the central bank to end its ‘’front-loading” of aggressive interest-rate hikes by early next year and shift to keeping policy sufficiently restrictive with small adjustments as inflation cools. “You do have to think about what the reasonable level is,” Bullard said […]
Read More(Bloomberg) — The latest bout of global financial volatility has heightened concerns about regulators’ continuing failure to resolve liquidity problems with US Treasuries — the debt that serves as a benchmark for the world. It’s getting harder and harder to buy and sell Treasuries in large quantities without those trades moving the market. Market depth, […]
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