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


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Fed injects $ 300 billion into financial markets in 4 days

Fed injects $ 300 billion into financial markets in 4 days

 20 September 2019 12:42 PM
Live: The Federal Reserve Bank of New York plans to inject funds into the US financial markets for the fourth consecutive day.

The Federal Reserve Bank of New York said in a statement on its website on Thursday that it will pump 75 billion dollars on Friday to provide more liquidity in the US financial system.

This is the fourth time in a row that the Federal Reserve Bank of New York has injected money into the market, a move that occurs for the first time in more than a decade.

The move to repurchase securities comes in an effort to stem the rise in US short-term financing costs and keep them within the target range of 1.75 to 2 percent.

Earlier this week, the US central bank decided to cut interest rates by 25 basis points, or 0.25 percent, the second decision since the global financial crisis.

Over the past three days, the Fed in New York has injected $ 225 billion into the financial system, bringing the total liquidity injected to $ 300 billion by the start of trading today.

The central bank could pump or withdraw liquidity in the market in order to keep short-term interest rates in line with the target range, which is the Fed's New York job.

 
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35 minutes ago, bostonangler said:

That's because the economy is so good. Because our policies are genius and stable.

The Fed are doing this independently from Trump. Most countries are slashing Interest rates an corporate taxes due to the Vibrate US Economy just to keep up. Your Hate is getting in the way again for thinking straight or you just don't understand reality. 

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1 minute ago, yota691 said:

The Fed are doing this independently from Trump. Most countries are slashing Interest rates an corporate taxes due to the Vibrate US Economy just to keep up. Your Hate is getting in the way again for thinking straight or you just don't understand reality. 

 

Donald wants zero to negative rates... He is complaining because the Fed didn't cut the rate enough... He really doesn't know what he's doing, except when it comes to breaking the law. He's got that down to a science, but like most criminals, he isn't smart enough to get away with it and the clock is running. Even the conservative members of his party are distancing themselves...

 

B/A

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42 minutes ago, bostonangler said:

 

Donald wants zero to negative rates... He is complaining because the Fed didn't cut the rate enough... He really doesn't know what he's doing, except when it comes to breaking the law. He's got that down to a science, but like most criminals, he isn't smart enough to get away with it and the clock is running. Even the conservative members of his party are distancing themselves...

 

B/A

DANGER WILL ROBINSON DANGER 

BLIND HATER IN THE HOUSE. :lmao:

 

So when Obama had the FED to keep the interest rate at 0 for his entire presidency to shore up the quantitative-easing giving the stock market a major boost, where you made a fortune that was okay? Truth be told I'm beginning to think you only care about your portfolio and nothing else.

 

 

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2 hours ago, ladyGrace'sDaddy said:

DANGER WILL ROBINSON DANGER 

BLIND HATER IN THE HOUSE. :lmao:

 

So when Obama had the FED to keep the interest rate at 0 for his entire presidency to shore up the quantitative-easing giving the stock market a major boost, where you made a fortune that was okay? Truth be told I'm beginning to think you only care about your portfolio and nothing else.

 

 

 

Hey if you like Donald's idea of zero percent rates, you have to admit you loved Obama.. Thanks for clearing that up.

 

B/A

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1 hour ago, bostonangler said:

 

Hey if you like Donald's idea of zero percent rates, you have to admit you loved Obama.. Thanks for clearing that up.

 

B/A

I was actually thankful that the Fed kept the rate at zero during President Obama's administration. Otherwise we'd have become a third world country in that eight years. 

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The Fed plans to inject more money into the market for 3 weeks

The Fed plans to inject more money into the market for 3 weeks

 20 September 2019 11:47 PM
Direct : Federal Reserve Bank in the state of "New York" announced that he plans to inject more money into the financial markets in the United States over the next three weeks to help maintain the interest rate within the target range.

The Fed announced today that it would inject $ 75 billion into the financial system for the fourth consecutive day in an effort to stem the sharp rise in US short-term financing costs and keep them within the target range of 1.75 to 2 percent after the Fed cut interest rates last week.

The US bank said in a statement on Friday, it will conduct "repo" daily from Monday until Friday, October 10.

The bank said it would inject at least $ 75 billion into the US financial system from Monday through the end of the period.

The US bank said that after October 10, it will pump money into the financial markets as necessary.

Separately, the US bank plans to make three 14-day stock buybacks for a total of at least $ 30 billion on September 24, 26 and 27.

 

1024.jpg

 

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41 minutes ago, bostonangler said:

 

How am I assuming? That's what he said... It's time for his followers to actually listen to his spoken words and not their unicorn fantasies.

 

B/A

 

The fantasy is Iraq increasing their rate, so  you can buy your dream boat and sail away.  Make sure you sail to the left, you don’t deserve any benefits from the right.  

 

Edited by gregp
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44 minutes ago, gregp said:

 

The fantasy is Iraq increasing their rate, so  you can buy your dream boat and sail away.  Make sure you sail to the left, you don’t deserve any benefits from the right.  

 

Now that's  been a fantasy of mine for years, seeing liberals sail away over the edge of Gods glorious FLAT earth until they fall off into oblivion 

:pirateship::drunk::lmao::lmao::lmao::praying:

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Fed member: US central bank may need additional rate cut

Fed member: US central bank may need additional rate cut

 23 September 2019 10:13 PM
Direct: A Fed member believes that the US central bank may need to further ease monetary policy to offset the negative risks of trade disputes and very low inflation.

In a pre-prepared statement announced in Illinois on Monday, St. Louis Reserve Bank President James Pollard said a sharper-than-expected slowdown could make it difficult for the FOMC to meet the 2 percent inflation target.

The Committee might choose to provide additional facilitation in the future, but decisions would be taken on a meeting-by-meeting basis .

Pollard argues that the Fed may need to implement further rate cuts to balance the situation when looking at downside risks.

The US central bank cut interest rates for the second time in two months last week by about 25 basis points to 1.75 to 2 percent.

Inflation figures are below the Fed's target for most of the past seven years.

Pollard said the recent reversal in US Treasury yields - higher interest rates for short-term bonds than long-term ones - seems to suggest that US monetary policy may be too restrictive for the current environment.

The Fed member said that the negative risks to the US economic expansion, which has continued for 10 years, include uncertainty in global trade policy, slowing global economic growth, contraction of US industrial activity in addition to the slowdown of corporate investment.

"Trade policy uncertainty is putting pressure on global investment and slow global growth may slow US economic growth."

He said that cutting interest rates as a form of insurance would bring inflation and its forecasts back to the 2 percent target as soon as possible.

 
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The Fed is pumping $ 110 billion into the US financial system

The Fed is pumping $ 110 billion into the US financial system

 26 September 2019 10:56 PM
Direct : Federal Reserve Bank said in the state of "New York" more than $ 100 billion in the US financial system in the continuation of the Bank 's efforts to ease short - term funding pressures.

The New York Federal Reserve has pumped about $ 110.1 billion into the financial system, the Wall Street Journal reported Thursday.

The US bank announced yesterday that it will raise the funds to be provided for loans overnight through repurchase agreements or repo today to 100 billion dollars from 75 billion dollars.

In the middle of this month, the Fed began pumping more money into short-term financing markets to stem the sharp rise in borrowing costs and keep them within the target range of 1.75 to 2 percent.

The Fed announced last week that it would conduct "repo" operations daily until October 10, by pumping at least $ 75 billion into the financial system.

 
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Political Motivation Never Trumper

Fed: US needs to allow more immigrants to suppor t economy

Fed: US needs to allow more immigrants to support economy

 26 September 2019 11:23 PM
Direct: said , "Robert Kaplan , " a member of the Federal Reserve that the proposals aimed at curbing immigration will affect economic growth in the United States , where the current workforce is growing more slowly with the progress of the age of the population.

Kaplan said the Federal President in the state of "Dallas" in comments on Thursday: "If you think you will reduce the number of immigrants and increase GDP, these two things are not consistent together," according to the agency "Reuters."

The federal member explained that the United States needs to develop the workforce.

Kaplan suggested that the United States consider reforms that would allow more immigration based on skills surveys.

Trade and immigration are looming as opportunities for the US economy to grow faster in the face of threats, the Fed said.

 
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Fed member calls for fixing US interest in anticipation of economic developments

Fed member calls for fixing US interest in anticipation of economic developments

 27 September 2019 09:36 PM
Direct: A member of the Federal Reserve said that US interest rates should remain constant until events become clear in what he called a strong economy, which also carries "obvious negative risks."

"My view is that we should keep interest rates steady, let things stabilize and watch how events are going on," Fed Chairman Patrick Harker said in prepared remarks on Friday.

The Fed cut interest rates this month for the second time in a row by a quarter percentage point to 1.75 percent to 2 percent.

The "Harker" that the US economy is strong as inflation is on the way to the goal of the Federal Reserve of 2 percent, however, also pointed to the potential obstacles in global trade developments.

Given the turmoil in the short-term funding markets last week, the Fed member said it did not directly reflect or direct the monetary policy stance and had no impact on the economy.

US financial markets have seen a rise in the cost of short-term borrowing, prompting the Fed to intervene by pumping more money to keep the federal funds rate at the target range.

 
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Fed Member: We may need additional US rate cuts

Fed Member: We may need additional US rate cuts

 30 September 2019 02:29 PM
Direct: A member of the Federal Reserve believes that the US central bank has taken a cautious approach, but there may be a need to further cut interest rates if the headwinds increase on the economy.

"We have cut interest rates by about 50 basis points (0.5 percent) and I think this move helped move us to the US," said Charles Evans, president of the Reserve Bank of Chicago, on CNBC. Tessere's position. "

"But that would be a moving target if the headwinds increased and we might need to do more."

In the last two meetings, the US central bank cut its benchmark interest rate from 2.25 to 2.5 percent before cutting it again between 1.75 and 2 percent, a trend the Fed is taking for the first time since the global financial crisis.

The Fed member added that he was "certainly open" to the appropriate target level of interest rates in order to obtain the right monetary policy.

He said: "At the moment I think that the appropriate monetary policy without interest rates to some extent neutral, and therefore we are providing the easing situation."

Evans noted that the past six months have seen difficulties in bringing inflation closer to the 2 percent target, as well as more uncertainty over trade negotiations as Chinese and European economic growth slows.

He pointed out that for the time being, data will be expected, especially inflation and labor market figures as key indicators.

 
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Fell to the lowest level in 9 years .. What do you know about the size of the global reserves of the dollar?

Economy | 12:09 - 02/10/2019

 
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Follow - Mawazine News

The dollar's share of global currency reserves reported to the International Monetary Fund (IMF) in the second quarter fell to its lowest level since the end of 2013, while the yen's share rose to its highest level in nearly 20 years, data published on Monday showed.
Reserves in US dollars amounted to $ 6.79 trillion, equivalent to 61.63% of total reserves allocated in the second quarter, compared with $ 6.74 trillion or 61.83% in the first quarter.
This is the lowest share of dollar reserves in total since the fourth quarter of 2013, when it stood at 61.27%.
Total reserves increased to $ 11.02 trillion in the second quarter from $ 10.90 trillion in the previous quarter.
Global reserves are assets held by banks in different currencies, mainly used to support their liabilities. Central banks sometimes use reserves to support their currencies.
While the dollar's share of foreign exchange reserves declined, the share of the euro, yen and Chinese yuan increased compared to the previous quarter.
The dollar remains the dominant reserve currency, but central banks around the world appear to continue to diversify their reserves rather than just the dollar.
The yen's share of global currency reserves
rose to 5.41% in the second quarter of 2019, the highest since the first quarter of 2001. The yuan's share also rose to 1.97%, its highest level since the IMF began announcing its share of central bank holdings in the fourth quarter. Ended 29 / p. 2016

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JPMorgan Tips: Beware of Global Equities and Keep Dollar Liquidity

JPMorgan Tips: Beware of Global Equities and Keep Dollar Liquidity

06 Oct 2019 07:12 PM
From: Ahmed Shawky

Direct : JPMorgan believes that the global economy is still stuck in a slowdown, and while the strength of the US consumer sector continues, weak global trade and manufacturing are hurting global growth prospects and increasing risks.

The bank confirmed in a report for its forecast for the fourth quarter of this year on its recommendation to reduce weight in stocks, in light of the continuing headwinds on profits, but preferred stocks in the United States over Europe and emerging markets.

The bank also favors US bonds over others, as well as a recommendation to slightly increase the weight of dollar liquidity.

JPMorgan sees trade and monetary policy dominating the economic situation in 2019, to the point that all major market volatility throughout the year can be linked to one or both.

Clearly, monetary policy easing has a disproportionate effect in pushing investment returns lower, but equally with today's yields and the forward pricing of future rate cuts suggests that bond markets express a more cautious view of economic growth than equities.

All of the following comes from the US investment bank's forecast.

Comprehensive outlook for the global economy

Our fundamental view is that the US economy will grow slightly in the last quarter of this year, and while risks have risen, a moderate acceleration of growth is still possible by mid-2020.

But the economy is still at the end of its cycle (where there is a marked slowdown), and despite the easing monetary policy, the boom of simultaneous and significant global growth that investors enjoyed in 2017 is not expected to return.

The crux of the problem for asset markets, especially equities - is that although growth in some indices, especially US consumer data, appears to be strong, the sectors of the global economy to which stocks are exposed are clearly under performing.

Escalating tensions between the United States and China affect not only global trade, but also capital spending data, external factors such as the technology development cycle, and the weakness in export and trade-dependent economies such as Germany and South Korea in 2019 are worrying. .

Weak manufacturing and trade concerns are likely to justify monetary easing, but they may come at a cost.

In the US, rate cut pricing may be ahead of itself, leaving room for disappointment in some asset markets if the Fed does not pursue the rate cut.

We see an increase in the reflection of the bond yield curve and slower job growth and corporate profits at the end of the economic cycle, but the US recession remains fundamentally unexpected.

In Europe , the consistently low long-term inflation outlook has been a sufficient reason for monetary easing, but it is not yet clear whether the banking sector is isolated enough from the negative interest rate damage.

Weak global manufacturing, trade war and Brexit risks continue to weigh on the European economy.

In emerging markets, growth and confidence are under pressure from the trade war, resulting in some winners and losers .

In another context, the sharp decline in bond yields seems more justified than the scene achieved by the stock markets, which reached new record levels, and this also tells us the need to take a cautious attitude in investment portfolios.

The US bank insists on retaining the modest underweight rating of stocks approved last November, but despite the sharp rise in bonds over the summer, the bank remained neutral on the recommendation of neutrality.

Over the past year, investment returns in high-yield debt in the United States have outpaced returns of large-cap stocks (6.6 percent versus 4.3 percent on a one-year basis), but as default rates began to rise and fundamentals deteriorated, the rating was downgraded. Weight to neutral.

Another change in expectations is the shift to increase the relative weight of cash in US dollars, reflecting little caution and a desire to increase liquidity if the economic outlook is bright.

But the bias of the US in most asset markets remains valid, although it may be tempting to end the outperformance of US equities and growth / quality in general, there is a strong belief that value will continue to rebound.

For regions like Europe and emerging markets to outperform, we will need to see a path to higher global returns.

Also in bonds, the higher yield available on US Treasuries strengthens the relative preference for government debt, although it is acknowledged to be slightly less clear than in recent quarters.

In credit, the bank trimmed its recommendation to invest in high-yield bonds (non-investment grade).

Overall, the Bank's investment portfolios reflect a slightly cautious view of the world, with the fact that it is currently in a late stage in the economic cycle.

The bank added that it would continue to examine the data for signs of a recovery in leading global manufacturing, capital and trade indices that could fuel a sustained recovery in cyclical assets such as the euro zone and emerging market equities. At the same time, a little "cash" on the margin gives room for To seize opportunities more dynamically as they appear and when they appear.

In the following points, the US bank outlines its asset performance forecast over the next 12 to 18 months.

Negative outlook for global stocks and bonds

The US bank has given a negative rating to global equities and bonds, although it is supported by monetary easing this year, but earnings expectations are still set for next year.

Government bonds .. US debt yields the biggest gainers

The bank is expecting more positive US Treasury yields than its global counterpart, but the outlook model sees a slight decline.

The US Bank continues to take a neutral rating on European bonds despite negative yields, weak economy and quantitative easing.

Britain's debt took a negative rating as political uncertainty deepened.

 

image.png.a3946a714f229a347818b367ea949ce9.png

                    (Equity and bond forecasts .. JPMorgan)

Credit .. Neutral rating for all

The US bank prefers investment-grade credit with a positive rating.

JPMorgan gave a neutral credit rating of high yields in the US, Europe and emerging markets.

The bank notes a slight rise in default rates and deteriorating economic fundamentals in the US, while the euro zone's neutral rating coincides with the strong performance of US bond yields but would be at risk if Europe's economy slows.

Emerging markets are still favored, but we are at risk of rising trade tensions.

Dollar Outlook is the King

The bank expects a positive performance for the US dollar against the G10 currencies and if the Fed's monetary easing is less than expected, the greenback will appreciate slightly.

On the euro side, the ECB sees no significant weakness from the ECB's easing measures, but there are few expectations for its recovery.

The bank expects a negative performance for the pound sterling with the risk of difficult Brexit and political crises, while the Japanese yen will be in a neutral position as a safe-haven currency in addition to the quantitative easing process of the central bank.

 

image.png.d4cb7b02c2a2764288dab70af3beede5.png

(Credit outlook and major currency performance .. JPMorgan)

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Fed member calls for further rate cut as risks increase

Fed member calls for further rate cut as risks increase

 07 October 2019 08:39 PM
Direct : A member of the Federal Reserve said that the US central bank should continue to cut interest rates to face the rising risks to the economy.

The US economy was shocked by disappointing economic data last week on the manufacturing and services sectors.

"My message is clear: we should support the economy and not put pressure on it, so I want to look at the data in the next few months, but so far," Neil Kashkari, the Federal Reserve president in Minneapolis, said at an event in Minnesota on Monday. I am happy that we have cut interest rates, ”according to Reuters.

The Fed has cut rates twice this year to 1.75 percent to 2 percent with expectations of a further cut at the next meeting at the end of this month.

He did not disclose how much he wanted, citing slowing global growth, weak corporate investment and inflation below the central bank's 2 percent target.

Asked whether the Fed might have less room to stimulate the economy in the event of a recession because interest rates are already low, Qashkari said QE could be used again as happened after the 2008 financial crisis.

"I feel like we have more confidence now that if the economy needs to use other tools, they will probably be used more aggressively than in the past."

 
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  • yota691 changed the title to Fed: US economy is growing at a moderate pace with positive outlook

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