(Bloomberg) — Inflation shows few signs of cooling in the economy. The same cannot be said of markets, which are starting to seem like the only thing the Federal Reserve has going for it these days. Even with Thursday’s big bounce, the S&P 500 has lost a quarter of its value this year. Shocking as […]
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, […]
Read More(Bloomberg) — Michael J. Wilson, one of Wall Street’s biggest equity bears, says a Federal Reserve pivot to dovishness is becoming likely amid falling money supply, but such a move won’t allay concerns about earnings. “We find M2 growth in what we call the ‘danger zone’ -– the area where financial/economic accidents tend to occur,” […]
Read More(Bloomberg) — US stocks swung wildly and the rout in Treasuries eased after investors speculated that the Federal Reserve may have become as hawkish as it will be during its battle against inflation. The S&P 500 closed down 1.7% after gaining as much as 1.5% earlier on the day the Fed raised rates by 75 […]
Read More(Bloomberg) — Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023, stepping up their fight to curb US inflation that’s persisted near the highest levels since the 1980s. Wednesday’s decision by the Federal Open Market Committee, which was unanimous, lifts the […]
Read More(Bloomberg) — Strategists are looking beyond the key issue of inflation for other potential market metrics that may cause the Federal Reserve to slow its aggressive cycle of interest-rate hikes. An ugly August reading for US consumer prices last week cemented bets on a third straight 75 basis-point move when the central bank hands down […]
Read More(Bloomberg) — Economist Nouriel Roubini, who correctly predicted the 2008 financial crisis, sees a “long and ugly” recession in the US and globally occurring at the end of 2022 that could last all of 2023 and a sharp correction in the S&P 500. “Even in a plain vanilla recession, the S&P 500 can fall by […]
Read More(Bloomberg) — The US Federal Reserve and a number of its global counterparts will launch a rapid-fire attack on inflation in the coming week as their commitment to bringing consumer prices under control gets ever more resolute. Three days of central-bank decisions are expected to deliver interest-rate hikes adding up to more than 500 basis […]
Read More(Bloomberg) — Former Treasury Secretary Lawrence Summers argued against the Federal Reserve holding back from aggressive monetary tightening, saying that greater economic damage would result from any hesitation. “History records many, many instances when policy adjustments to inflation were excessively delayed and there were very substantial costs to that,” Summers told Bloomberg Television’s “Wall Street […]
Read More(Bloomberg) — Federal Reserve officials will signal a more hawkish stance next week, with interest rates reaching 4% by December and staying high through 2023, economists surveyed by Bloomberg said. The Federal Open Market Committee will raise rates by 75 basis points for a third consecutive meeting when policy makers announce their decision at 2 p.m. […]
Read More(Bloomberg) — Jeffrey Gundlach of DoubleLine Capital is worried the Fed will choke off economic growth by raising interest rates too fast. Former Treasury Secretary Larry Summers is among those saying the central bank needs to hike even faster to restore its credibility. Gundlach, the chief investment officer of DoubleLine Capital, believes the Fed will […]
Read More(Bloomberg) — Investors, analyst and economists alike received a harsh reality check on Tuesday as inflation for the month of August topped expectations and sent US stocks tumbling by the most more than two weeks. The S&P 500 Index slumped as much as 2.7%, putting it on track to snap its longest winning streak in […]
Read More(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Federal Reserve officials look on track for another jumbo increase in interest rates this month, as they hasten to crimp demand and assure Americans they will bring inflation back down to 2%. Fed Governor Chris Waller signaled […]
Read More(Bloomberg) — Federal Reserve Chair Jerome Powell said officials will not flinch in the battle to curb inflation, hardening expectations that they will deliver a third straight jumbo rate hike later this month. “We need to act now, forthrightly, strongly as we have been doing,” Powell said Thursday in remarks at the Cato Institute’s monetary […]
Read More(Bloomberg) — A late-summer lull is nowhere to be seen in the stock market, with traders recalibrating their expectations after a blunt warning from the Federal Reserve chief in Jackson Hole. Most likely, they have a long ways to go. So say derivatives strategists at Bank of America Corp., who point to a disparity in […]
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