Wednesday, 19 December, 2018

Fed retunes message for 2019, opening door to 'slow down'

Was Post Fed Chair Speech Rally a Market Overreaction Rising Rates Channel Was Post-Fed Chair Speech Rally a Market Overreaction?By Ben Hernandez
Kelvin Reese | 01 December, 2018, 08:11

Federal Reserve Chairman Jerome Powell speaks at the Economic Club of New York's luncheon in New York November 28, 2018.

Federal Reserve Chairman Jerome Powell ignited a market rally Wednesday by saying interest rates are "just below" broad estimates of a level considered neutral, a setting created to neither speed nor slow economic growth. From the Fed's perspective, the interest rate hike in December will probably lead to an interest rate level that will no longer justify the automatism of a quarterly interest rate hike.

Analysts read that as a suggestion that Powell intends to be more cautious about hikes in rates.

Nearly all Fed officials at the meeting agreed another interest rate increase was "likely to be warranted fairly soon", but also opened debate on when to pause further hikes and how to relay those plans to the public.

"The messaging from the US over the last four weeks has been characteristically erratic", said David Page, senior economist at AXA Investment Managers.

The change comes months after Powell indicated plans to raise interest rates and cool down the United States economy, moves that run counter to President Donald Trump's expansionary moves, including last year's tax cuts.

In a speech Wednesday, Fed Chairman Jerome Powell raised similar points, which sent stock markets surging.

Ivanka Trump defends use of private email, brushes aside Mueller probe
But the controversy has picked up in the interest of Outgoing House Oversight Committee chair Rep. Ms Trump said all of her emails were "stored and preserved".

Australian steer stands out in his field
Knickers, who is a Holstein Friesian, is double the weight of an average animal of its breed and more than a foot taller. Big Knickers: According to BBC , Knickers was first bought when he was about 1 year old.

Watch Chuck Liddell vs Tito Ortiz 3 Live Stream Video on Fite
That's when Ortiz blasted "The lceman" with a right hand to the chin and Liddell's eyes rolled back as he crumbled to the canvas. The former UFC champs fought in 2004 and 2006, and Liddell stopped his fellow star in both scraps.

With last year's deep tax cuts and fiscal stimulus from Congress, the world's largest economy continues to hum, producing steady job growth and driving the unemployment rate to its lowest level since 1969 even as inflation remains right at the Fed's two percent target. Many investors read the remarks as signalling the Fed's three-year tightening cycle was drawing to a close.

His comments sparked a surge in a stock market that had struggled of late and came in the wake of criticism of the Fed's rate increases by President Donald Trump.

In his speech, which was focused on the Fed's assessment of the health of the US financial system, Powell said it is "important to distinguish between market volatility and events that threaten financial stability".

But he cautioned that things could turn out a lot differently than the Fed expects.

It was 2.95 per cent earlier this month, suggesting investors have scratched off a full rate hike from their forecasts of Fed policy. And neither should investor expectations about the Fed's future work. "We also know that moving too slowly - keeping interest rates too low for too long - could risk other distortions in the form of higher inflation or destabilizing financial imbalances". "And I'm not blaming anybody, but I'm just telling you I think that the Fed is way off-base with what they're doing". Three of those increases have been under Powell.

The continued strength of the American economy has made it more likely that the Fed will stick to its plans to raise rates in December, as part of its strategy to keep growth on an even keel into 2019.

"If Trump were able to get those additional concessions from China at this meeting, and announce certainly no trade deal, but. a commitment to further negotiations to work towards a deal and in the interim not see further escalation, then that's something markets would latch onto", Page added.

Recommended

  • Lionel Messi leads Barcelona to 2-1 win over PSV Eindhoven

    Lionel Messi leads Barcelona to 2-1 win over PSV Eindhoven

    PSV can not progress in the Champions League after only picking up a single point from their opening four games. PSV unlucky not to go into the break at least one goal in front after twice hitting the frame of the goal.
    Dershowitz says Robert Mueller report won't result in Donald Trump criminal charges

    Dershowitz says Robert Mueller report won't result in Donald Trump criminal charges

    Last week Trump submitted written answers to questions from Mueller instead of facing an interview in person. Mueller was appointed special counsel in May 2017, after Trump fired then-FBI Director James Comey.
    Algerian government confirms the visit of Saudi Crown Prince

    Algerian government confirms the visit of Saudi Crown Prince

    Saudi Crown Prince Mohammed bin Salman is encountering something in Tunisia that he doesn't see often: public anger. At the presidential airport, he was received by Tunisian President Beji Caid Essebsi and other senior officials.
  • Russian Men Barred From Entering Ukraine Amid Escalating Crisis

    Russian Men Barred From Entering Ukraine Amid Escalating Crisis

    Whatever Putin's true objective are, the Russians seem increasingly focused on making things as turbulent as possible for Ukraine. The vessels were stopped from entering the Kerch Strait and confronted by Russian FSB border guards.
    Pacers guard Victor Oladipo out indefinitely

    Pacers guard Victor Oladipo out indefinitely

    Lakers: Lonzo Ball had two points and eight rebounds in 34 minutes while playing through an ankle injury. It didn't take LeBron James long to take over and essentially run the show for the Lakers , apparently.
    Ohio State Climbs To No. 6 In Latest AP Poll

    Ohio State Climbs To No. 6 In Latest AP Poll

    The next five in the rankings probably don't have a chance at making the playoffs unless a freakish chain of events happens. Knox went down with a foot injury in the win against MI and won't be able to recover quick enough to play a week later.
  • Sen. Brown says Trump 'likes' his auto bill

    Sen. Brown says Trump 'likes' his auto bill

    Numerous job cuts would affect the Midwest, the politically crucial region where the president promised a manufacturing rebirth. General Motors announcement of their Lordstown plant closing has been the topic of discussion between Ohio's senators.
    Bipartisan leaders of Senate Intelligence Committee respond to Michael Cohen's plea deal

    Bipartisan leaders of Senate Intelligence Committee respond to Michael Cohen's plea deal

    Adult-film star Stormy Daniels was given US$130,000 and former Playboy model Karen McDougal was paid US$150,000. As part of this deal, Cohen pleaded guilty to lying to Congress regarding a Trump Tower project in Moscow.
    Xbox One X Sale: Just $399 for Cyber Monday (Lowest Price)

    Xbox One X Sale: Just $399 for Cyber Monday (Lowest Price)

    And the Nintendo Entertainment System: NES Classic Edition system surpassed lifetime sales of 2 million. And next month, it will launch its biggest title of the year, Super Smash Bros.
  • Indonesia safety agency recommends Lion Air improve safety culture

    Indonesia safety agency recommends Lion Air improve safety culture

    The malfunctioning sensor is key to correct operation of the MCAS, which is charged with detecting and correcting unsafe stalls. The main intent of MCAS is to make the MAX respond to a stall in a way pilots would find consistent with other 737 models.
    U.S.  offers new $5 mn reward for Mumbai attackers

    U.S. offers new $5 mn reward for Mumbai attackers

    Over 300 people were left injured after 10 Lashkar terrorists sailed all the way from Pakistan and entered Mumbai . Six hostages - including a rabbi and his pregnant wife - were killed at the Nariman Chabad House.
    What do the White House Christmas decorations look like?

    What do the White House Christmas decorations look like?

    Visitors are encouraged to write messages to their loved ones who are on duty or overseas with provided digital tablets. The Grand Foyer and Cross Hall has 29 trees with more than 14,000 red ornaments and plenty of twinkling lights.

George Bush senior dies at 94 years old George Bush senior dies at 94 years old During World War Two, he was an aviator against the Japanese before being shot down in September 1944 while on a bombing raid. He outlived both Gerald Ford, who died in 2006 at 93, and Ronald Reagan, who died in 2004 at 93.

Crude Market: Oil dips below $50 on output doubts Crude Market: Oil dips below $50 on output doubts By August 2018, Saudi Arabia's production was up by 630,000 barrels per day compared with June 2014 and Russia's output had climbed by 525,000 bpd.

Saudi Crown Prince sidelined in G20 family photo Saudi Crown Prince sidelined in G20 family photo Saudi Arabia denies that bin Salman ordered the killing, but US intelligence agencies have concluded the opposite. In contrast, Mr Putin and the crown prince shared a smiley, enthusiastic greeting at the gathering.

KC Star Kareem Hunt Caught on Camera Assaulting Woman In TMZ Video KC Star Kareem Hunt Caught on Camera Assaulting Woman In TMZ Video According to NFL reporter Benjamin Allbright , two league sources asserted that the NFL and organization knew of the video . The clip, which came from an OH hotel hallway camera, was published by TMZ on Friday afternoon.

Canada blindsided by GM Oshawa closure, workers walk out in protest Canada blindsided by GM Oshawa closure, workers walk out in protest Trudeau tweeted on Monday that he "spoke with GM's Chief Executive Mary Barra to express his deep disappointment in the closure". United States consumers are buying sports utility vehicles (SUV's) and trucks more than traditional four-door cars.

Republicans Win Mississippi Senate Race Despite Media Blitz, Report Says Republicans Win Mississippi Senate Race Despite Media Blitz, Report Says Hyde-Smith was the favorite in the solidly red state, and the final Senate election of 2018 was long seen as an afterthought. In the final weeks of the runoff, Hyde-Smith's campaign said the remark about making voting hard was a joke.

‘Sometimes you need to FIGHT BACK’ - Melania Trump's surpisingly AGGRESSIVE Twitter advice ‘Sometimes you need to FIGHT BACK’ - Melania Trump's surpisingly AGGRESSIVE Twitter advice Trump was speaking at a Liberty University "town hall" about the opioid addiction epidemic. Trump said she wanted to educate the next generation on the dangers of drug use.

Gender reveal party started a huge Arizona fire Gender reveal party started a huge Arizona fire In the end, more than 100 people had to evacuate their homes, and the cost the fire and its damage came out to $8.2 million. Dickey told authorities he constructed the target with an explosive substance known as Tannerite.

U.S. calls China’s tariffs on American autos ‘egregious’ U.S.  calls China’s tariffs on American autos ‘egregious’ If no deal is reached during that meeting, he intends to impose tariffs of 10% to 20% on all remaining imported goods from China. President Ramaphosa will also chair a BRICS Leaders' Summit on the margins of the G20.

LSU-Texas A&M 7-Overtime Thriller Ends with Postgame Fight LSU-Texas A&M 7-Overtime Thriller Ends with Postgame Fight Nearly two hours after LSU dumped Gatorade on their coach in premature celebration, the Texas A&M Aggies prevailed, 74-72. Fisher was asked who the second person was and if he knew about the incident after the game and said: "I have no idea".

Trump’s Chinese Tariffs Target Consumer Electronics, Including Sony and PlayStation Trump’s Chinese Tariffs Target Consumer Electronics, Including Sony and PlayStation The price of an iPhone ranges from $449 to $1,449 in the US , including older models such as the iPhone 7 that Apple still sells. China has retaliated but has less room to manoeuvre as the USA buys much more from China than it exports there.

Three US service members killed in Afghanistan blast Three US service members killed in Afghanistan blast Separately, the military said Tuesday that a preliminary review has found that an Afghan commando likely accidentally shot a U.S. According to an AP Report , The Taliban claimed responsibility for the deadliest attack on American forces since June 2017.

Trump tweets support of MS senator ahead of runoff Trump tweets support of MS  senator ahead of runoff MLB , which made the donation Friday, three weeks after her comment, request Sunday that she return the money. Senate race to be decided in 2018 and will determine whether Republicans add to their slim majority.

Trump rejects key conclusion of US government climate report Trump rejects key conclusion of US government climate report Trump had just visited California where we saw the site of the most destructive and deadly wildfire in the state's history. The report - produced by 300 scientists, many from 13 federal departments and agencies, and overseen by the U.S.

Here's What Happened In Russia And Ukraine's Naval Clash Here's What Happened In Russia And Ukraine's Naval Clash Poroshenko promises that martial law would not mean Ukraine's immediate mobilization for war or the restriction of civil rights. The UN secretary general, António Guterres, has urged both countries to use "maximum restraint" and avoid further escalation .