(Bloomberg) — Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control, said Sonal Desai, chief investment officer for fixed income at Franklin Templeton Cos. “The Fed lacks credibility,” Desai said on Bloomberg Television’s “Wall […]
Read More(Bloomberg) — Investors bracing for a recession jolt accelerated their retreat from stocks after the Federal Reserve warned it won’t be easily deterred in its fight against inflation, Bank of America Corp. strategists say. Global equity funds had outflows of $9.4 billion in the week to Aug. 31, the fourth-largest redemptions this year, according to […]
Read More(Bloomberg) — Economists boosted their inflation estimates for each quarter in 2023, a potentially worrying sign for Federal Reserve policy makers trying to keep price expectations anchored. The personal consumption expenditures index, which the Fed uses for its inflation target, is seen averaging an annualized 2.5% at the end of next year, up from 2.3% […]
Read More(Bloomberg) — A key measure of US producer prices unexpectedly fell in July for the first time in more than two years, largely reflecting a drop in energy costs and representing a welcome moderation in inflationary pressures. The producer price index for final demand decreased 0.5% from a month earlier and rose 9.8% from a […]
Read More(Bloomberg) — The cooler-than-expected US inflation reading for July is a positive sign that has buoyed risk assets, but some investors may be getting a little ahead of themselves, according to analysts. The rally that sent the S&P 500 to a three-month high and the Nasdaq 100 more than 20% above its June bottom was […]
Read More(Bloomberg) — US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue aggressively hiking interest rates. The consumer price index increased 8.5% from a year earlier, cooling from the 9.1% June advance that was the largest in four decades, Labor Department […]
Read More(Bloomberg) — The last time inflation burned hot, consumers could put money in the bank and watch it grow like the prices on store shelves, easing much of the pain. Not this time — and that’s stoking profits for US lenders. The gap between what banks pay depositors and what they earn from lending money […]
Read More(Bloomberg) — Two key US inflation gauges posted larger-than-forecast increases on Friday, heightening concerns that prices will remain persistently high and prompt continued aggressive interest-rate increases from the Federal Reserve. The Labor Department’s employment cost index, a broad gauge of wages and benefits, increased 1.3% in the second quarter from the prior three months, compared […]
Read More(Bloomberg) — After underestimating the worst inflation outbreak in decades, central banks are now driving their economies headlong toward recession in order to tame prices. The stark outlook is stoking fears that policy makers will end up overreaching as they push ahead with aggressive interest-rate hikes, just as some now concede they overstimulated through the […]
Read More(Bloomberg) — The Federal Reserve will need to go on a longer tightening cycle and raise interest rates well into next year to control inflation that Blackstone Group sees as “more deeply entrenched” in the US. “My own view is the Fed funds rate could exceed 4%. I think they could go above 4.5%, maybe […]
Read More(Bloomberg) — Data that landed like a gut punch on anyone hoping inflation had receded was received with notable poise by investors. Why that happened was the subject of frantic speculation Wednesday on Wall Street. While odds of draconian rate hikes jumped, so did shares of semiconductor producers, retailers and automakers. Tech stocks as tracked […]
Read More(Bloomberg) — US inflation roared again to a fresh four-decade high last month, likely strengthening the Federal Reserve’s resolve to aggressively raise interest rates that risks upending the economic expansion. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data […]
Read More(Bloomberg) — US inflation data in the coming week may stiffen the resolve of Federal Reserve policy makers to proceed with another big boost in interest rates later this month. The closely watched consumer price index probably rose nearly 9% in June from a year earlier, a fresh four-decade high, based on the median projection […]
Read More(Bloomberg) — Worries over surging global food costs are easing as prices of everything from cooking oils to wheat and corn tumble to the lowest levels in months on increasing physical supplies and as investors reduce their bullish bets on futures markets. Palm oil, the world’s most consumed edible oil, has plunged more than 40% […]
Read More(Bloomberg) — Commodities are careering into a second half that promises as much turmoil as the first, with the world facing an escalating energy crisis, copper plunging on Fed-fueled recession fears, and Russian President Vladimir Putin delivering a shock for Shell Plc. Russia’s move to reshuffle ownership of the Sakhalin-2 gas plant spells trouble for […]
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