Sunday, December 22

Tag: Federal Reserve

Inflation is sticking around. Here’s what that means for interest rate cuts — and your money.
11Apr By adminNo Comments
Money

Inflation is sticking around. Here’s what that means for interest rate cuts — and your money.

The war against inflation was never going to be easy, but the latest consumer price index data demonstrates just how tough a fight the Federal Reserve is facing. In the months ahead, the outcome of that battle will have major implications for your finances.New labor data shows that U.S. prices in March rose 3.5% from a year ago, hotter than economists expected and the third straight month that inflation has accelerated. Gasoline prices and rent contributed over half the monthly increase, the government said on Wednesday.The upshot: The Fed's ongoing campaign to tame inflation is far from over. That has left consumers and investors wondering if the central bank, who until recently were widely expected to cut its benchmark interest rate in June, could push back that timeline several months,...
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When will the Fed cut rates? Maybe not in 2024, one Fed official cautions
5Apr By adminNo Comments
Money

When will the Fed cut rates? Maybe not in 2024, one Fed official cautions

Inflation expected to continue with no recession. Financial advisor provides tips on how to save Inflation expected to continue with no recession. Financial advisor provides tips on how to save 05:28 A Federal Reserve official on Thursday raised the possibility the central bank may not cut interest rates at all in 2024, deflating Wall Street's expectations that several reductions could be in store later this year. "If we continue to see inflation moving sideways, it would make me quest...
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2023 a mixed bag for Wall Street, U.S. economy
31Dec By adminNo Comments
Money

2023 a mixed bag for Wall Street, U.S. economy

2023 a mixed bag for Wall Street, U.S. economy - CBS News Watch CBS News It has been a blockbuster year for investors, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all up with double-digit gains. However, the Federal Reserve battled the worst inflation in decades with several rate hikes, and 2023 marked the worst banking crisis since 2008, with three major institutions collapsing. Astrid Martinez reports. Be the first to know Get browser notifications for breaking news, live events, and exclusive reporting. ...
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The Federal Reserve Is Trying to Catch Up with Falling Inflation
15Dec By adminNo Comments
Entertainment

The Federal Reserve Is Trying to Catch Up with Falling Inflation

On Wall Street, happy days are here again, and Jay Powell, the chair of the Federal Reserve, is the toast of the market. On Wednesday and Thursday, stock prices surged after Powell and his colleagues indicated that they are likely to cut a key interest rate three times next year. Market interest rates, which are tied to the Fed’s actions, fell sharply in anticipation of the central bank’s policy pivot becoming a reality.Just a couple of weeks ago, Powell, who has spent the past two years trying to bring down inflation, said that it was too early to consider interest-rate cuts. But, in a press conference on Wednesday, following a gathering of Fed policymakers, he said, “That’s really what happened in today’s meeting.” A set of new projections showed that Fed officials now expect the federa...
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Federal Reserve leaves interest rate unchanged, but hints at cuts for 2024
14Dec By adminNo Comments
Money

Federal Reserve leaves interest rate unchanged, but hints at cuts for 2024

The Federal Reserve on Wednesday said it is holding its benchmark interest rate steady, extending a reprieve for borrowers after the fastest series of hikes in four decades. The central bank also indicated it expects three rate cuts in 2024. The Fed said in its policy statement that it will maintain the federal funds rate in a range of 5.25% to 5.5%, marking the third consecutive pause since July, when it last raised rates. Federal Bank officials also signaled the benchmark rate could be cut by 0.75% percentage point in 2024, according to a chart that documents their projections."The appropriate level [of the federal funds rate] will be 4.6% at the end of 2024" if the Fed's economic projections hold up, Fed Chair Jerome Powell said during a conference call to discuss today's decision. ...
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Dow hits record high as investors cheer Fed outlook on interest rates
13Dec By adminNo Comments
Money

Dow hits record high as investors cheer Fed outlook on interest rates

The Dow Jones Industrial Average surged to close at more than 37,000 points for the first time as investors applauded a statement from the Federal Reserve on Wednesday that it could cut its benchmark interest rate next year.The blue-chip index jumped 512 points, or 1.4%, to end the day at 37,090, topping its prior peak of 36,799 in early 2023. The broader S&P 500 rose 1.4% and is within 1.9% of its own record. The tech-heavy Nasdaq composite added 1.4%.Fed officials also left their short-term rate unchanged for a third straight meeting amid signs that their aggressive push to subdue inflation is working. With the price spikes that slammed Americans during the pandemic now receding in earnest, Fed Chair Jerome Powell said in a news conference that the federal funds rate is projected to...
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Fed rate hikes are over, economists say. Here’s what experts say you should do with your money.
13Dec By adminNo Comments
Money

Fed rate hikes are over, economists say. Here’s what experts say you should do with your money.

Americans are paying the price for the Federal Reserve's flurry of interest rate hikes, engineered to battle the hottest inflation in 40 years, through sharply higher borrowing costs. But with inflation now receding, the Fed's rate hikes may be drawing to an end, and that has important implications for your finances, according to economists. The Federal Reserve on Wednesday said it's keeping its benchmark rate steady, the central bank's third consecutive pause. Wall Street is now forecasting that the Fed will stand pat in early 2024 due to cooling inflation and a slower job market. After that, the Fed could begin cutting rates as soon as early 2024, some economists are now predicting.To be sure, Fed Chairman Jerome Powell is keeping mum on the bank's next moves, saying earlier this month ...
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Oil Falls: Oil falls 3%, extends losses after US inflation data
12Dec By adminNo Comments
Business

Oil Falls: Oil falls 3%, extends losses after US inflation data

LONDON: Oil fell 3% on Tuesday, with Brent crude hitting the lowest since June after US consumer prices rose in November, offering more evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year. The CPI report added to downward pressure earlier coming from concern over excess supply and slowing demand, despite support from escalating supply risks in the Middle East after an attack by the Iran-aligned Houthis on a tanker. Brent crude futures for February fell $2.30, or 3%, to $73.73 per barrel by 1458 GMT and traded as low as $73.56, the lowest since June. US West Texas Intermediate crude for January slipped $2.39, or 3.4%, to $68.93. "Sentiment remains negative," said Tamas Varga of broker PVM. "There is no help coming from the demand side of the oil e...
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US dollar listless as markets brace for post-Thanksgiving buzz
27Nov By adminNo Comments
Business

US dollar listless as markets brace for post-Thanksgiving buzz

LONDON: The US dollar began the last week of November on the back foot and was on track for its biggest monthly drop in a year as traders eyed fresh economic cues in the week ahead to determine the future path of policy rates. A postponed OPEC+ meeting, the release of the Federal Reserve's tracked measure of inflation alongside consumer prices data in the euro zone and Australia fill this week's calendar, which will also see a rate decision from the Reserve Bank of New Zealand and Chinese PMI data. The dollar index, which measures the currency against six major peers, slipped as much as 0.2% to 103.22 and was headed for a monthly loss of more than 3%, its worst performance in a year. "Expectations are that US rates have peaked which suggests it's time to get out of the dollar," said Colin...
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Euro zone bond yields climb as central banks talk tough on rates
9Nov By adminNo Comments
Business

Euro zone bond yields climb as central banks talk tough on rates

LONDON: Euro zone government bond yields rose on Thursday after falling the two previous sessions, as central bankers pushed back against market bets that interest rates will drop in 2024.Germany's 10-year bond yield, the benchmark for the bloc, was last up 3 basis points (bps) at 2.647%, up from a two-month low of 2.606% hit on Wednesday. Yields move inversely to prices.European bond yields have fallen sharply over the past two weeks, dragged lower by a drop in their US counterparts, after the EuropeanCentral Bank, Federal Reserve and Bank of England left interest rates on hold at their latest meetings. Some weaker-than-expected US and European economic data and a tweak to US Treasury debt issuance plans have also pushed down market rates. Yet ECB vice president Luis De Guindos said on T...
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