(Bloomberg) — The Federal Reserve gave a much needed shot in the arm of technology stocks on Wednesday by ruling out an more aggressive rate hike path and reassuring the U.S. economy remains strong. The megacap tech complex — which includes Apple Inc., Microsoft Corp. and Amazon.com Inc — rallied after Fed Chairman Jerome Powell […]
Read More(Bloomberg) — Jerome Powell doesn’t like to bless bets in financial markets, but he could shift the needle this week on how high investors expect the Federal Reserve to raise interest rates to cool overheated prices. The Fed chair and his colleagues want to lift rates expeditiously to a neutral level this year that neither […]
Read More(Bloomberg) — If you’re a Federal Reserve policy maker, the stock selloff of the last few weeks comes with a silver lining. Financial conditions — a cross-asset measure of market health from equities to fixed income — have finally started to tighten over the past week in sympathy with the recent plunge in equities, led […]
Read More(Bloomberg) — Oil erased earlier gains as traders weighed hawkish comments from U.S. Federal Reserve officials and China’s promise to repair the economic damage caused by a spate of lockdowns. Global benchmark Brent traded below $112 a barrel after four days of gains. The bullish run in crude and other commodities are fanning inflation, and […]
Read More(Bloomberg) — Strategists from the world’s biggest asset manager are challenging traders betting that the Federal Reserve will raise rates to around 3% next year, saying that policy makers will raise borrowing costs to 2%, but not go much further. An overly aggressive path of hikes to combat the spiraling cost of living may backfire, […]
Read More(Bloomberg) — Federal Reserve officials laid out a long-awaited plan to shrink their balance sheet by more than $1 trillion a year while raising interest rates “expeditiously” to counter the hottest inflation in four decades. The roadmap for reducing the assets they bought during the pandemic was spelled out on Wednesday in minutes of their […]
Read More(Bloomberg) — A hawkish Federal Reserve, high inflation, war and pestilence are among the reasons to doubt the U.S. stock market rebound. Technical studies suggest such naysayers risk missing out on a run to a record high. Skeptics are presently fixated on proliferating inversions across the Treasury yield curve, where shorter-term yields exceed those for […]
Read More(Bloomberg) — JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called for ratcheting up sanctions against Russia in response to its invasion of Ukraine and said the Federal Reserve may ultimately raise interest rates more than the market expects. The U.S. should increase sanctions “in whatever way national security experts recommend to maximize the […]
Read More(Bloomberg) — Neither war, disease nor inflation are proving capable of preventing American stocks from doing what they’ve almost always done for 13 years: go up. How policy makers devoted to getting inflation under control will view that is becoming a hot topic on Wall Street. Right now, the 6.6% surge in the S&P 500 […]
Read More(Bloomberg) — The U.S. rates market was hammered anew on Monday, with a selloff driving yields on short-dated Treasuries to one of their biggest daily jumps of the past decade after Federal Reserve Chair Jerome Powell said he’s willing to enact larger hikes if needed to fight inflation. The central bank chief’s hawkish tone led […]
Read More(Bloomberg) — Defying their stock-market counterparts, Treasury traders aren’t buying Jerome Powell’s upbeat pronouncements on growth. In fact, in the aftermath of Wednesday’s policy decision, one bond-market indicator of economic hardship is flashing red for the first time since the darkest days of the pandemic. After the Federal Reserve raised interest rates and signaled hikes […]
Read More(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Federal Reserve Chair Jerome Powell must strike a delicate balance before Congress in the coming week as he aims to reassure Americans the central bank will confront high inflation at the same time war in Ukraine clouds […]
Read More(Bloomberg) — The Federal Reserve faces a growing risk of making a policy mistake, tipping the economy into a recession, as it confronts decades-high inflation that’s proving more persistent and broad-based than policy makers expected. After holding interest rates near zero since the start of the pandemic, Fed Chair Jerome Powell and his colleagues are […]
Read More(Bloomberg) — What’s safer than short-duration bonds? Even shorter duration debt. As investors brace for an increasingly aggressive Federal Reserve, money is flooding into cash-like ETFs — which are seen as relatively less vulnerable to interest-rate risk. Traders have been piling into exchange-traded funds mostly focused on ultra-short instruments like Treasury bills, while offloading ETFs […]
Read More(Bloomberg) — Optimists expecting the stock market to weather the rate-hike cycle as they’ve done in the past are missing one important detail, according to Bank of America Corp.’s strategists. While U.S. equities saw positive returns during previous periods of rate increases, the key risk this time round is that the Federal Reserve will be […]
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