(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) — Some big bond investors say don’t be deceived by the Treasury market’s torrid rally Wednesday. The hawkish signals still coming out of the Federal Reserve are what matters. The rest is noise. The world’s biggest bond market has been whipsawed in recent days on the back of a debt crisis gripping the UK. […]
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) — 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) — 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 […]
Read More(Bloomberg) — Losses loom for Asia’s stock market on Monday as investors absorb Federal Reserve Chair Jerome Powell’s stern message that interest rates are going higher for longer in a painful fight against inflation. Futures shed almost 2% for Japan and 1.5% for Australia after a 3.4% plunge in the S&P 500 index. The slide […]
Read More(Bloomberg) — Investors continued piling into stocks and bonds, dismissing the risk of a more aggressive Federal Reserve as they expect it to ease the pace of rate hikes while inflation pulls back from its peak, according to Bank of America Corp. strategists. Global equity funds attracted $7.9 billion in the week through Aug. 17, […]
Read More(Bloomberg) — An account of the debate at the Federal Reserve’s July policy meeting, set to be published after two weeks of whiplash on Wall Street, will probably offer clues as to what would push the central bank to go big with tightening yet again in September. Fed officials’ decision at their July 26-27 gathering […]
Read More(Bloomberg) — Federal Reserve Chair Jerome Powell is raising interest rates at the steepest pace in a generation and he said Wednesday that another big increase is possible. Yet investors sent stocks surging on his comments that the hikes will eventually slow. Some Fed watchers say markets read Powell’s press conference too narrowly. Economists pointed […]
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