Fed: US economy is growing at a moderate pace with positive outlook

[yota691]

UPDATE: Gold is falling globally as Powell's testimony waits for the Fed record

10 July 2019 03:38 PM
Mubasher : Gold prices continued their losses during Wednesday's trading, with the Fed Chairman's remarks and the minutes of the bank meeting.

Later in the day, investors are awaiting the testimony of US Secretary of State James J. Powell to the US Congress on monetary policy and economic performance, as well as the minutes of the Federal Reserve meeting, which saw interest rates stabilize.

White House economic adviser Larry Kowaldi revealed telephone conversations on Tuesday between US and Chinese officials on the trade issue, describing them as constructive.

He said yesterday that there was no attempt on the part of the administration of President Donald Trump to dismiss the Fed chairman.

The comments come despite repeated press reports that Trump is considering removing Mr Powell from his post, discontent over the rate increase.

By 12:17 pm GMT, the price of gold futures for August delivery fell by 0.4 percent, or $ 5 at $ 1395.50 an ounce.

The spot delivery price of the yellow metal fell 0.4 percent at $ 1392.03 an ounce.

During that period, the major dollar index, which measures the performance of the currency against six major currencies, stabilized at 97.454.

 

[yota691]

 

[yota691]

A member of the Fed supports a two-year rate cut in 2019 to counter inflation sluggishness

16 July 2019 10:33 PM
Direct: A member of the Council of the Federal Reserve that inflation is slowing along with economic uncertainty refers to the need to cut interest rate twice by the end of this year.

Charles Evans, the head of the Federal Reserve in Chicago, told the CNBC network on Tuesday that in order for inflation to exceed the bank's target of 2 percent, we need to cut interest rates twice by the end of 2019.

Evans said that lowering interest rates may not be enough in the long term when the bank faces sustained low inflation as well as tensions over trade and a slowing global economy.

A Fed member said he would defend multiple interest rate cuts, which markets expect widely.

A member of the Fed said he believed that slowing inflation alone was enough to demand interest rate cuts before the end of the year.

The Federal Reserve is due to meet at the end of the month to unveil its monetary policy decision as market expectations that there is a 100 percent chance of a rate cut at the next meeting.

In his remarks today, the Fed chairman said that continuing uncertainty raised the possibility of a rate cut.

 

[yota691]

US market expectations for US interest rate cut 0.5% at July meeting

19 July 2019 02:12 PM
From: Sally Ismail

Mubasher: Investors' expectations for the Federal Reserve to cut US interest rates by about 0.5 percent have increased at its next meeting, with speculation about whether or not to cut interest rates.

According to the CMA index, which tracks Fed futures futures trading on Friday, the probability of a 50 basis point rate cut (0.5 percent) at the July meeting rose to 46.2 percent.

This means that investors expect to cut the interest rate to a range of 1.75 to 2 percent instead of the current range of 2.25 to 2.50 percent.

 

From CMMA to monitor market expectations

Investors see a 53.8 percent chance of a 25 basis-point cut in interest rates at the same meeting for interest rates ranging from 2 to 2.25 percent.

Comparing market expectations to speculation just a week ago, there is a very big difference, with only 23 percent seeing a 50-basis-point chance of a rate cut, versus 77 percent expecting a 25bp cut.

The outlook comes after comments by Reserve Bank of New York President John Williams yesterday that a rapid and strong US rate cut should be implemented to protect the economy.

Investors considered Williams' comments a sign of more cautious approach by the US central, which could open the way for a significant rate cut at the end of the month.

Earlier this month, US Treasury chief Jerome Powell's testimony indicated the possibility of a rate cut, but hinted at limited action.

Bianco CEO Jim Bianco believes there is a need to cut rates by 50 basis points at the July 31 meeting, given the yield curve .

[yota691]

Trump commented on the Fed's decision: "Jerome Powell let us down as usual"

 01 August 2019 12:08 p
From: Ahmed Shawky

Direct: US President Donald Trump said that the President of the Federal Council of Jerome Powell hit the markets let down after a few hours of the decision to cut the interest rate.

The Fed decided to cut interest rates by 25 basis points to between 2 percent and 2.25 percent, butthe US president had previously said he wanted a strong cut in interest rates.

"What the market wanted to hear from Jerome Powell and the Federal Reserve is that this was the beginning of a long cycle of interest rate cuts that would keep pace with what China, the EU and other countries around the world are doing," Trump wrote in a tweet on Wednesday.

"As usual, we failed Powell, but at least ended the quantitative emphasis, which should not have started at the beginning, not inflation."

"We win anyway, but I certainly do not get much help from the Fed," said the head of the world's largest economy.

The Federal Reserve chairman said that the interest rate cut was only to adapt to economic conditions, but not a shift in monetary policy, in a sign that further rate cuts were not certain.

 

[yota691]

UPDATE 1-Dollar rises globally to two-year high after Powell's comments

 31 July 2019 10:18 PM
The US dollar boosted its gains to a two-year high against most major currencies on Wednesday, following the Fed's decisions and President's comments.

The Fed today decided to cut interest rates by 25 basis points for the first time since the global financial crisis and decided to stop the budget cut program in August, which is two months early than the previous date.

The Fed chairman said the rate cut was to adapt to economic conditions, not a shift to the bank's policy towards more monetary easing.

In terms of trade developments, a US trade delegation visited China this week, the first since the two heads of state agreed at the end of last month to resume trade talks.

However, US President Donald Trump on Tuesday accused China of delaying talks in anticipation of the US presidential election.

The US private sector added 156,000 jobs this month, more than analysts expected, and Chicago's economic activity hit its lowest level since 2015 , official data showed on Wednesday .

While labor costs in the United States rose in the second quarter of this year at the slowest pace since the end of 2017.

By 7:15 pm GMT, the dollar was up against the euro by 0.6 percent at $ 1.1083 and the yen gained 0.2 percent at 108.81 yen.

The US currency fell against the pound by 0.09 percent to raise the sterling to 1.2163 dollars, while rose against the Swiss franc by 0.3 percent, recording 0.9931 francs.

The British currency saw some support today after significant losses in the past few days for fear of the difficult bricast, to exceed the pound sterling again level of 1.22 dollars.

During that period, the major dollar index, which measures the performance of the currency against six major currencies, rose more than 0.5 percent to 98.567, its highest level since May 2017.

 

[yota691]

Dollar price forecast in the coming period

Economie

2019-08-08 | 08:29

 

2,536 views

In the opinion of experts polled by Reuters, the dollar exchange rate in the next stage will depend on the nature of the Federal Reserve's response to financial market pressures and US President Donald Trump.

Half of the analysts surveyed believed that the Fed's easing of its monetary policy would lead to a depreciation of the US currency. 

Financial markets expect the Fed to cut interest rates this year at least twice by 25 basis points, and such a scenario would significantly weaken the dollar.

 

According to analysts, the euro, which has fallen more than 2% this year, will rise 3% in the next 12 months, to $ 1.15 from $ 1.11.

[yota691]

Trump: I'm not happy with the strength of the US dollar

 08 August 2019 06:49 PM
From: Sally Ismail

Live: US President Donald Trump expressed his unhappiness with the strength of the US dollar and continued his repeated attack on the Fed.

`` As president of the United States, some might think I would be happy with the strong US dollar, but I'm not, '' Trump wrote in a series of tweets posted on his official Twitter account on Thursday.

The president explained that the Fed's high interest rates compared to other countries are keeping the dollar high.

"The strength of the currency makes it more difficult for big industrial companies like Caterpillar, Boeing, John Deere, American automakers and others to compete fairly."

 

By 3:26 pm GMT, the dollar index, which tracks the greenback's performance against six major currencies, was flat at 97.492.

With significant rate cuts (no inflation) and no monetary tightening, the dollar will make it possible for our companies to win any competition, the president said.

President Donald Trump does not leave the occasion without launching an attack against the Fed's interest rate policy, the latest of which is his demand for greater and faster cuts in borrowing costs.

The president said: We have the largest companies in the world and there are no other companies close to that level but unfortunately can not say the same thing about the Federal.

He pointed out that the Fed makes the wrong decisions at every step and we are still winning, wondering: Can you imagine what would happen if they already made the right decisions ?.

At its last meeting, the Fed decided to cut interest rates by 25 basis points to between 2 and 2.25 percent.

[MyLadiesDaddy]

I wish he would end the Fed.

[yota691]

Trump abandons strong dollar policy: hinders our exports

Economie

2019-08-09 | 03:14

 

 

3,875 views

WASHINGTON (Reuters) - US President Donald Trump has again expressed dissatisfaction with the dollar's strength, saying the Fed's policy on interest rates is hurting US manufacturers, according to Reuters.

"The high level of interest rates of the Federal Reserve compared to other countries keeps the dollar higher, which makes it more difficult for US manufacturers to compete in a level playing field," Trump said in a series of tweets.

 

This is not the first time that Trump has criticized the appreciation of the dollar exchange rate, and is believed that the strong US currency hinders the export of US goods and services, as well as worsening the US trade deficit, which reached in 2018 the level of $ 621 billion. 

Trump argues that if the dollar becomes cheaper, foreign consumers will prefer to buy American goods, which will increase production and reduce the deficit in foreign trade. 

Earlier, Bloomberg quoted a senior administration official as saying that Trump believes the dollar's current exchange rate is too high, a sign that the president has abandoned the strong dollar policy his predecessors have stuck to power.

[yota691]

Oh my Barrack Hussein Obama never experience a Fed rate hike in his prop up economy supported by a Bailout, an 11 Trillion  debt. Obama once stated that pulling out the Credit Card in the name of the Bank of China was UnAmerican...

US investor: US interest rate cut is not enough to support the economy

 09 August 2019 07:50 PM
Direct: An American investor doubted that the process of reducing US interest rates can simply solve the problems facing the economy.

"I don't think interest rate cuts are the solution," Carl Eckahn said in televised comments with CNBC on Thursday. "If it is that easy, you will never have those economic cycles."

The US billionaire added that there is a justification for cutting interest rates, but given Europe, which cut interest rates to the negative range and compared with their economy, it is unlikely that reducing the cost of borrowing is the solution to this problem.

The US central bank decided to cut rates for the first time in more than a decade last month, citing global developments and subdued inflation.

"I think the problem of China should be solved," said Eckahn.

 

[bostonangler]

I really don't think Trump has a clue... One day he wants high rates the next day he wants low rates... And his advisor is Larry Kudlow. A CNBC guy who hasn't got a call right in 20 years... 

 

B/A

[bostonangler]

Why neg the truth? He said rates should be high, then said they should be low.... Which is it?

And be honest, would you take investment advise from Larry Kudlow? Be honest.

 

B/A

[bostonangler]

I swear you people have no idea what you are supporting. So you like Larry Kudlow? The president wants low rates? Here's what Larry advises.

 

Larry Kudlow, the new economic adviser. He’s for free trade, tax cuts and a strong dollar.

 

Take his advise?  Uh I don't think so.

 

And Kudlow has made some enormous bad calls. In the fall of 2007, when the housing and stock markets were collapsing, he downplayed it, writing in National Review that, “Despite all the doom and gloom from the economic pessimistas, the resilient U.S economy continues moving ahead quarter after quarter, year after year, defying dire forecasts and delivering positive growth.” Looking ahead to 2008—when the entire U.S. economy came crashing down and millions of Americans lost their jobs, and banks, automobile makers and mortgage lenders had it be bailed out to the tune of hundreds of billions of taxpayer dollars—he said “we are about to enter the seventh consecutive year of the Bush boom.”

 

https://www.marketwatch.com/story/kudlows-history-of-bad-economic-calls-2018-03-15

 

 

And don't say fake news... This history, not news. Unless you want to change history like those evil leftist, this is what you got. A big mouth reality TV star who gets it wrong... Yup he does fit right in.

 

B/A

[yota691]

Markets return 100% probability of US rate cut in September

23 August 2019 07:09 PM
From: Ahmed Shawky

Mubasher : Investors raised their expectations for a 100 percent US interest rate cut again at their next meeting in September.

There is a 95 percent probability that the central bank will cut interest rates in September by 25 basis points, according to the CME index, which follows the Fed's futures trading on Friday.

Markets also see a 5 percent chance of a 50bp cut in US interest rates next month.

The likelihood of a 100 percent US rate hike again rose after Federal Reserve Chairman Jerome Powell said the central bank would do what was necessary to sustain economic expansion.

The economic data negative of rising fears of slowing economic growth with trade escalation between China and the United States , where the first announced its intention to impose tariffs on US goods worth $ 75 billion at a time when President Donald Trump called for companies to search for another alternative non - Beijing.

The markets briefly abandoned a certain rate cut as the likelihood of a stabilization rose to around 9 percent yesterday, with uncertainty over the Fed's stance on recession fears following comments by central bank members that they would not favor a rate cut.

The Fed is scheduled to meet on September 17-18 with broad expectations that it will cut rates for the second time since the global financial crisis after last month's cut.

 

[yota691]

Trump calls on the Fed to cut interest rates and announce stimulus measures

 16 September 2019 03:54 PM
Forbidden copper

Direct : The US president again criticized the high interest rates in the United States, calling on the Federal Reserve to cut interest rates and stimulus measures.

Donald Trump said on Monday that producer prices in China contracted at the fastest pace in three years as a result of the sharp devaluation of the yuan and monetary stimulus.

"Does the Fed not keep an eye on what is happening? Will the US central bank take part in the game? The US dollar is stronger than ever, real bad for exports," he said.

 

Donald Trump said: "There is no inflation, interest rates are high, and the United States pays a higher interest rate than other countries because of the Fed.

Trump continued: "Now, above all , oil prices have risen . We need to cut interest rates and inject monetary stimulus."

The Fed is scheduled to hold its monetary policy meeting this week, amid expectations of a 25bp

[Shabibilicious]

Donald's trying really really hard to buy a 2020 victory for himself....greasing pockets when it benefits him is all he knows.  He's already proclaimed publicly his love for debt, so fiscal responsibility and future generations are the furthest things from his mind.

 

GO RV, then BV

[coorslite21]

4 hours ago, yota691 said:

Trump calls on the Fed to cut interest rates and announce stimulus measures

 16 September 2019 03:54 PM
Forbidden copper

Direct : The US president again criticized the high interest rates in the United States, calling on the Federal Reserve to cut interest rates and stimulus measures.

Donald Trump said on Monday that producer prices in China contracted at the fastest pace in three years as a result of the sharp devaluation of the yuan and monetary stimulus.

"Does the Fed not keep an eye on what is happening? Will the US central bank take part in the game? The US dollar is stronger than ever, real bad for exports," he said.

 

Donald Trump said: "There is no inflation, interest rates are high, and the United States pays a higher interest rate than other countries because of the Fed.

Trump continued: "Now, above all , oil prices have risen . We need to cut interest rates and inject monetary stimulus."

The Fed is scheduled to hold its monetary policy meeting this week, amid expectations of a 25bp

 

4 hours ago, Shabibilicious said:

Donald's trying really really hard to buy a 2020 victory for himself....greasing pockets when it benefits him is all he knows.  He's already proclaimed publicly his love for debt, so fiscal responsibility and future generations are the furthest things from his mind.

 

GO RV, then BV

 

Seems the Country is now between the proverbial rock, and a hard place, due to decades of financial mismanagement.....will the economy tank?.....and how soon?

 

Yes it will.......and that timing will have a profound affect on the election......       JMO.  CL 

[bostonangler]

6 hours ago, yota691 said:

Trump calls on the Fed to cut interest rates and announce stimulus measures

 

Worked for Obama... 

 

B/A

[yota691]

For the second day .. Federal plans to inject $ 75 billion into the financial system

18 September 2019 02:14 PM
Direct : Federal Reserve Bank of New York announced that it plans to pump $ 75 billion in the US financial system when the resumption of trading today, the second intervention of its kind in two days.

The Federal Reserve in New York yesterday announced the  injection of funds in the financial market for the first time in more than a decade.

The cost of borrowing overnight through repo, known as repo, rose in the morning trade yesterday to 10 percent, a fourfold increase from Monday morning, according to Reventive data.

A ribo is vital to the financial system because it gives companies access to cash using US Treasury bonds as collateral.

The sharp rise in the repo rate has created a crisis for the Fed as officials there prepare to announce their monetary policy decision later in the day.

The effective interest rate on federal funds rose to 2.25 per cent, the highest range of the Fed's target of 2 to 2.25 per cent, and against the 2.14 per cent level at the end of last week.

In response, the Federal Reserve Bank of New York, which is in charge of market operations for the Federal Reserve, has issued a process to help boost the federal funding rate through the target range.

 

[MyLadiesDaddy]

 

[yota691]

The Fed plans to inject $ 75 billion into the financial system for the third day

 19 September 2019 02:02 PM
Direct : The US Federal Reserve announced that it plans to inject $ 75 billion into the banking system for the third day in a row, in an effort to control the high interest rate in the money market.

This week, the New York Financial Reserve - in charge of market operations - injected money into the financial market for the first time in more than a decade.

The Fed's decision in New York was in response to the rise in the cost of overnight cash borrowing through the repurchase agreement known as repo in morning trading on Tuesday to 10 percent, a fourfold increase from Monday morning.

But after my decision on Tuesday and Wednesday to inject money into the financial markets, yesterday's repo rates fell to more normal levels.

Traders will be allowed not to exceed two bids for each asset class, and there will be a maximum of $ 10 billion per offer in that process, the Fed said in a statement on Thursday.

Fed Chairman Jerome Powell said yesterday that the Fed would continue repo operations if necessary to correct the market.

The Federal Reserve yesterday decided to cut interest rates for the second time in a row by 25 basis points to a level between 1.75 percent to 2 percent.

 

[yota691]

Fed cuts interest rate amid split members

18 September 2019 09:09 PM
From: Ahmed Shawky

Direct : The Fed decided to cut US interest rates for the second consecutive meeting, amid a clear split among its members on the decision.

The US central bank said in a statement on Wednesday that it had decided to cut its benchmark interest rate by 25 basis points to a level of 1.75 percent to 2 percent.

The US central bank cut interest rates in July for the first time since the global financial crisis.

Seven members of the Federal Reserve agreed to cut interest rates by 25 basis points, while two members opposed the decision, preferring to hold rates unchanged, while a third saw a rate cut of about 0.50 percent.

The Fed said that in light of the economic implications of global developments as well as downward inflationary pressures, it decided to cut rates.

The Fed noted that the labor market remained strong, economic activity rose at a moderate pace, and the unemployment rate remained low.

 

[yota691]

Trump comments on Fed decision: Powell failed again

18 September 2019 09:57 PM
From: Ahmed Shawky

Direct: US President Donald Trump criticized the Fed's decision, saying the central bank failed again.

The Fed cut interest rates for its second meeting in a row by 25 basis points, but the statement showed members were split on the decision amid limited signs of further direction to further ease monetary policy.

"The Fed and Gerol Powell failed again, no courage, no sense, no vision," Trump said in a tweet on Twitter.

The US president has repeatedly called for a rate cut to zero or less to support US economic growth.

The US central bank raised expectations for economic growth this year at 2.2 percent, while inflation estimates have been confirmed.

 

[yota691]

SECRETARY POWELL: We'll cut more if the economy goes down

 18 September 2019 10:36 PM
Direct : Federal Reserve Chairman Jerome Powell has pledged that the bank will make a "wave" of interest rate cuts if circumstances warrant, but does not see it as necessary at the moment.

The US central bank decided to cut interest rates by 25 basis points, from 1.75 percent to 2 percent.

Powell said at a news conference after the monetary policy statement on Wednesday that the data will determine future movements in interest rates, as the Bank is ready to move in order to maintain the expansion continued for a decade.

"If the economy slips, it would be appropriate to make several rate cuts, but we don't see that, and that is not what we expect," he said.

The Fed justified its decision to cut interest rates in response to a weak global economy and continued slowing inflation.

"Today's rate cut is in line with our objectives and not within a predetermined easing cycle, and we will rely heavily on data," the Fed chairman said.

The Fed's decision today comes with a split of members as well as a lack of strong evidence of further monetary easing in the future.

Powell said: "Sometimes the way forward is clear and sometimes less, we will look carefully at the meetings on the data and we will assess the appropriate position of the policy and proceed."

The Fed chairman said he did not see the central bank going to use negative interest rates in the future, even in times of crisis, during which strong asset purchases would result.