Friday, October 18

Tag: Monetary Policy

The Fed Alone Can’t Make Gold Sparkle in 2024
29Dec By adminNo Comments
Money

The Fed Alone Can’t Make Gold Sparkle in 2024

Updated Dec. 29, 2023 4:23 pm ETOn the fifth day of Christmas my true love sent to me: five gold rings, which turned out to be much more expensive than a year ago. The key investment question is whether they will be worth even more by the time next Christmas comes around.New York gold futures closed at $2,062.40 an ounce Friday, ending the year with a 13.34% gain and very near the record close of $2,081.90 reached Wednesday. This snaps a two-year losing streak.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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2024 Could Be the Year of the Yen
29Dec By adminNo Comments
Money

2024 Could Be the Year of the Yen

The Japanese yen has been one of the worst performing currencies of the past couple of years. It could do better in 2024.The yen has lost around 20% against the dollar since the end of 2021, underperforming other major currencies. Japan’s central bank kept its ultralow interest rates while most of its peers have been raising rates aggressively. Higher yields outside of Japan have driven the currency lower and lower.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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China Central Bank to Help Boost Consumer Prices Amid Deflation Risks
29Dec By adminNo Comments
World

China Central Bank to Help Boost Consumer Prices Amid Deflation Risks

Dec. 29, 2023 1:20 am ET|WSJ ProChina’s central bank has vowed to boost consumer prices as the world’s second-largest economy is battered by tepid demand and weakening confidence.The People’s Bank of China said it would “promote price recovery from low levels and keep prices at reasonable levels,” according to a statement released late Thursday summarizing the central bank’s fourth-quarter monetary policy meeting.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Soft Landing Talk Prompts 1990s Flashbacks
28Dec By adminNo Comments
Money

Soft Landing Talk Prompts 1990s Flashbacks

Updated Dec. 28, 2023 4:11 pm ETTalk of a soft landing for the U.S. economy has investors dreaming of a 1990s-style boom soon afterward. A lot would have to go right for that to happen, but it isn’t as outlandish as it sounds.Examples of the economy escaping a tightening cycle from the Federal Reserve without entering a recession are few. Some cite the Fed’s rate cuts in 2019, though it is impossible to know how that would have ended without the pandemic. The most frequently mentioned example is a series of rate hikes in 1994. They wreaked havoc on markets that year, but were soon followed by the dawn of a golden period for both Wall Street and Main Street.  Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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China’s Big Banks Cut Deposit Rates as Growth Plateaus
22Dec By adminNo Comments
World

China’s Big Banks Cut Deposit Rates as Growth Plateaus

Dec. 21, 2023 11:05 pm ETChina’s biggest banks are lowering the deposit rates offered to savers, a move that could pave the way for the central bank to make interest-rate cuts to spur economic growth.Five state-owned lenders and joint-stock bank China Merchants Bank said the rate cuts took effect on Friday. The five were Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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BOE Money Printing to Cost UK as Much as HS2, Ex-Official Says
20Dec By adminNo Comments
Money

BOE Money Printing to Cost UK as Much as HS2, Ex-Official Says

The Bank of England’s quantitative easing program is on track to cost the UK taxpayer as much as the entire HS2 high-speed rail link that the government has scaled back on value-for-money grounds, according to a former BOE rate setter.Michael Saunders, who was on the Monetary Policy Committee between 2016 and 2022, said the £126 billion ($161 billion) “lifetime cost” to the taxpayer of central bank money printing, calculated using the government’s own official forecasts, is “similar to the full HS2 scheme adjusted to 2023 prices.” In October, Prime Minister Rishi Sunak scrapped the rail link’s northern leg as costs spiralled.
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Fed Official Says Central Bank Isn’t ‘Really Talking About Rate Cuts’
16Dec By adminNo Comments
World

Fed Official Says Central Bank Isn’t ‘Really Talking About Rate Cuts’

Updated Dec. 15, 2023 4:53 pm ETFederal Reserve officials offered competing views Friday of when they might begin to lower interest rates next year after Chair Jerome Powell suggested they were likely done raising them.One of Powell’s senior lieutenants said Friday that central-bank officials weren’t actively debating when to cut rates at their policy meeting this week, an apparent effort to temper markets’ exuberant interpretation of the chair’s comments at a news conference Wednesday.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Fed-Fueled Rally Extends Gains in Stocks, Bonds
14Dec By adminNo Comments
World

Fed-Fueled Rally Extends Gains in Stocks, Bonds

Investors’ growing confidence that interest rates have peaked fueled a second-straight day of gains across Wall Street on Thursday, driving the Dow Jones Industrial Average toward a new record and intensifying a debate about whether the rally stands to complicate the Federal Reserve’s fight against inflation.Stocks, bonds, oil and gold all climbed. The Dow rose 0.2%, extending Wednesday’s 512-point rise to a record close above 37000. The yield on the benchmark 10-year U.S. Treasury note, which falls when bond prices rise, headed for its first close below 4% since July. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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