Japan inflation ticks up as oil rises but the central bank’s target remains elusive

Japan’s annual core consumer inflation ticked up in September but remained at half the pace of the central bank’s elusive 2 percent target, underscoring the challenge of meeting the price goal as escalating trade frictions cloud the economic outlook. Private spending needs to increase more for core consumer inflation to accelerate beyond 1 percent,” said Takeshi Minami, chief economist at Norinchukin Research Institute. BOJ Governor Haruhiko Kuroda on Thursday offered a slightly more upbeat view


Japan’s annual core consumer inflation ticked up in September but remained at half the pace of the central bank’s elusive 2 percent target, underscoring the challenge of meeting the price goal as escalating trade frictions cloud the economic outlook. Private spending needs to increase more for core consumer inflation to accelerate beyond 1 percent,” said Takeshi Minami, chief economist at Norinchukin Research Institute. BOJ Governor Haruhiko Kuroda on Thursday offered a slightly more upbeat view
Japan inflation ticks up as oil rises but the central bank’s target remains elusive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, banks, ticks, core, japan, central, elusive, trade, months, inflation, target, rises, boj, remains, price, costs, oil, slightly, prices, consumer


Japan inflation ticks up as oil rises but the central bank's target remains elusive

Japan’s annual core consumer inflation ticked up in September but remained at half the pace of the central bank’s elusive 2 percent target, underscoring the challenge of meeting the price goal as escalating trade frictions cloud the economic outlook.

While the rate of increase was the fastest in seven months, the gain was due mostly to higher oil costs with most other items rising only slightly, government data showed on Friday.

“We’re not seeing inflationary pressure build up. Private spending needs to increase more for core consumer inflation to accelerate beyond 1 percent,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

“Inflation will probably stagnate around current levels for some time.”

The nationwide core consumer price index (CPI), which strips away the effect of volatile fresh food costs, rose 1.0 percent in September from a year earlier, matching a median market forecast and ticking up from 0.9 percent in August.

The so-called core-core CPI, a more closely watched gauge the Bank of Japan uses that excludes the effect of both fresh food and energy costs, stood at 0.4 percent in September, in line with the previous month.

The inflation data will be among factors the central bank examines at its rate review on Oct. 30-31, when it conducts a quarterly review of its growth and price projections.

BOJ Governor Haruhiko Kuroda on Thursday offered a slightly more upbeat view on prices than three months ago, saying that core consumer inflation was “moving around 1 percent.”

Rising energy costs may give the BOJ justification to slightly revise up its inflation forecasts, though the boost may be moderated by uncertainty over the fallout from escalating trade frictions, analysts say.

In a quarterly report scrutinizing Japan’s regional economies, the BOJ cut its assessment for two regions and warned that companies were becoming increasingly worried about the hit from the simmering Sino-U.S. trade frictions.

Under current projections made in July, the BOJ expects core consumer inflation to hit 1.1 percent in the year ending in March 2019, and accelerate to 1.5 percent the following year.

Stubbornly soft inflation has dashed the BOJ’s hopes that solid economic growth will translate into higher prices, and could delay the central bank’s exit from ultra-loose policy.

Japan’s economy rebounded in the second quarter from a contraction in the first three months of this year thanks to robust business spending.

But escalating trade frictions and a series of natural disasters that disrupted supply chains cloud the outlook for the export-reliant economy, with some analysts projecting a slight contraction in the July-September quarter.

Uncertainty over the economic outlook adds to challenges for the BOJ, which has struggled to fire up wages and prices despite years of heavy money printing.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, banks, ticks, core, japan, central, elusive, trade, months, inflation, target, rises, boj, remains, price, costs, oil, slightly, prices, consumer


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Tell us what you think: What will spark the next big market move?

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all capped their worst weekly performance since March on Friday, despite seeing strong gains for the day. The moves on Wall Street came amid a global market sell-off for the week. Meanwhile, the earnings season is underway in the U.S., and financial giant J.P. Morgan reported Friday that third-quarter figures beat analysts’ expectations. Also last week, fresh data showed that China’s trade surplus with the U.S. widened to a record $3


The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all capped their worst weekly performance since March on Friday, despite seeing strong gains for the day. The moves on Wall Street came amid a global market sell-off for the week. Meanwhile, the earnings season is underway in the U.S., and financial giant J.P. Morgan reported Friday that third-quarter figures beat analysts’ expectations. Also last week, fresh data showed that China’s trade surplus with the U.S. widened to a record $3
Tell us what you think: What will spark the next big market move? Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-15  Authors: eustance huang
Keywords: news, cnbc, companies, tell, think, central, bank, spark, weekly, week, big, worst, weekmeanwhile, widened, chinas, weeks, trade, market


Tell us what you think: What will spark the next big market move?

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all capped their worst weekly performance since March on Friday, despite seeing strong gains for the day. The moves on Wall Street came amid a global market sell-off for the week.

Meanwhile, the earnings season is underway in the U.S., and financial giant J.P. Morgan reported Friday that third-quarter figures beat analysts’ expectations.

At the same time, U.S. President Donald Trump has been vocal in his criticism of the Federal Reserve raising interest rates, even attributing last week’s partial meltdown in stocks to the U.S. central bank and saying it has “gone crazy.”

Also last week, fresh data showed that China’s trade surplus with the U.S. widened to a record $34.13 billion in September. All this comes as the ongoing trade war between Washington and Beijing drags on.

On Sunday, China’s central bank governor said it still has “plenty” of tools to counter any downside from the trade tensions.


Company: cnbc, Activity: cnbc, Date: 2018-10-15  Authors: eustance huang
Keywords: news, cnbc, companies, tell, think, central, bank, spark, weekly, week, big, worst, weekmeanwhile, widened, chinas, weeks, trade, market


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Trump doubles down on Fed attacks, saying it’s ‘going loco’

Saying he’s “not happy” with the Fed, Trump told Fox News he could’t understand why it was continuing to tighten U.S. monetary policy. The Fed is going loco and there’s no reason for them to do it. Even as he expressed concerns about the Fed’s interest rate policy, Trump told reporters at the White House Tuesday that he had not spoken to Fed Chairman Jerome Powell about them. I think the Fed has gone crazy,” the president told reporters. The Fed has raised interest rates three times this year an


Saying he’s “not happy” with the Fed, Trump told Fox News he could’t understand why it was continuing to tighten U.S. monetary policy. The Fed is going loco and there’s no reason for them to do it. Even as he expressed concerns about the Fed’s interest rate policy, Trump told reporters at the White House Tuesday that he had not spoken to Fed Chairman Jerome Powell about them. I think the Fed has gone crazy,” the president told reporters. The Fed has raised interest rates three times this year an
Trump doubles down on Fed attacks, saying it’s ‘going loco’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: christina wilkie, everett rosenfeld, nicholas kamm, afp, getty images
Keywords: news, cnbc, companies, saying, white, going, trump, president, fed, problem, central, told, rates, loco, policy, doubles, attacks, interest


Trump doubles down on Fed attacks, saying it's 'going loco'

U.S. President Donald Trump continued his tirade against the Federal Reserve in a late Wednesday television appearance, laying into the central bank’s policy decisions and suggesting it is to blame for Wednesday’s sharp market decline.

Saying he’s “not happy” with the Fed, Trump told Fox News he could’t understand why it was continuing to tighten U.S. monetary policy. The president has previously expressed displeasure with the central bank, and that’s led some to fear the institution’s independence is at risk.

“The problem I have is with the Fed. The Fed is going wild. I mean, I don’t know what their problem is that they are raising interest rates and it’s ridiculous,” Trump said during a telephone interview with Fox host Shannon Bream. “The problem [causing the market drop] in my opinion is Treasury and the Fed. The Fed is going loco and there’s no reason for them to do it. I’m not happy about it.”

“Loco” means “crazy” in Spanish.

In recent months, U.S. officials have sought to emphasize that Trump would honor the Fed’s historic ability to make decisions independent of political interference. “We as an administration absolutely support the independence of the Fed,” Treasury Secretary Steven Mnuchin reportedly said in July.

As recently as Tuesday, Trump had signaled that he understood the importance of maintaining a firewall between the White House and the Fed. Even as he expressed concerns about the Fed’s interest rate policy, Trump told reporters at the White House Tuesday that he had not spoken to Fed Chairman Jerome Powell about them.

“I like to stay uninvolved with them. I have not spoken” to Powell all year, Trump said.

Trump’s attitude towards the Fed seemed to change Wednesday, however, as fears about rapidly rising rates helped cause the Dow Jones Industrial Average to drop more than 800 points by day’s end. The S&P 500 posted its worst day since February and clinched its first five-day losing streak since 2016.

Early on Wednesday afternoon, Trump knocked his central bank as he deplaned from Air Force One in Erie, Pennsylvania for a campaign rally. “I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president told reporters.

The Fed has raised interest rates three times this year and is largely expected to hike once more before year-end.

The most recent September rate hike drew criticism from Trump at the time, who said he was “worried about the fact that they seem to like raising interest rates, we can do other things with the money,” he said.

—CNBC’s Thomas Franck contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: christina wilkie, everett rosenfeld, nicholas kamm, afp, getty images
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‘I would not associate Jay Powell with craziness,’ says IMF’s Christine Lagarde

International Monetary Fund managing director Christine Lagarde said Thursday she “would not associate” U.S. Federal Reserve Chairman Jerome Powell “with craziness.” “I would not associate Jay Powell with craziness. Lagarde made the comment in response to a question from CNBC’s Geoff Cutmore about U.S. President Donald Trump. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally. Lagarde added: “All over the world, it is certainly a


International Monetary Fund managing director Christine Lagarde said Thursday she “would not associate” U.S. Federal Reserve Chairman Jerome Powell “with craziness.” “I would not associate Jay Powell with craziness. Lagarde made the comment in response to a question from CNBC’s Geoff Cutmore about U.S. President Donald Trump. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally. Lagarde added: “All over the world, it is certainly a
‘I would not associate Jay Powell with craziness,’ says IMF’s Christine Lagarde Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: weizhen tan, ted kemp, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, walking, christine, jay, associate, president, bank, fed, imfs, craziness, certainly, central, powell, think, world, lagarde


'I would not associate Jay Powell with craziness,' says IMF's Christine Lagarde

International Monetary Fund managing director Christine Lagarde said Thursday she “would not associate” U.S. Federal Reserve Chairman Jerome Powell “with craziness.”

“I would not associate Jay Powell with craziness. No, no, he comes across, and members of his board, as extremely serious, solid and certainly keen to base their decisions on actual information, and decide to communicate that properly,” she said, speaking to CNBC at the IMF and World Bank annual meetings in Bali, Indonesia.

Lagarde made the comment in response to a question from CNBC’s Geoff Cutmore about U.S. President Donald Trump. The American leader knocked the Fed on Wednesday for continuing to raise interest rates despite some recent market turbulence.

“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally.

Lagarde added: “All over the world, it is certainly a good principle to have independence of the central banks and of the central bank governors. Certainly we have advocated that in all countries, and I think that the Fed is no exception.”


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: weizhen tan, ted kemp, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, walking, christine, jay, associate, president, bank, fed, imfs, craziness, certainly, central, powell, think, world, lagarde


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Larry Kudlow says the Fed is independent and the president is not dictating policy to central bank

A day after President Donald Trump called the Federal Reserve “loco,” his top economic advisor said the White House is not trying to influence monetary policy. Larry Kudlow, director of the National Economic Council, spoke Thursday to CNBC about the current state of the economy and its impact on markets. On Trump’s remarks, he did not address them directly but said the administration knows the Fed has a job to do. The president is not dictating policy to the Fed. The market weakness comes amid a


A day after President Donald Trump called the Federal Reserve “loco,” his top economic advisor said the White House is not trying to influence monetary policy. Larry Kudlow, director of the National Economic Council, spoke Thursday to CNBC about the current state of the economy and its impact on markets. On Trump’s remarks, he did not address them directly but said the administration knows the Fed has a job to do. The president is not dictating policy to the Fed. The market weakness comes amid a
Larry Kudlow says the Fed is independent and the president is not dictating policy to central bank Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: jeff cox
Keywords: news, cnbc, companies, dictating, day, president, kudlow, white, bank, weakness, larry, central, amid, economic, policy, independent, views, economy, fed


Larry Kudlow says the Fed is independent and the president is not dictating policy to central bank

A day after President Donald Trump called the Federal Reserve “loco,” his top economic advisor said the White House is not trying to influence monetary policy.

Larry Kudlow, director of the National Economic Council, spoke Thursday to CNBC about the current state of the economy and its impact on markets.

On Trump’s remarks, he did not address them directly but said the administration knows the Fed has a job to do.

“The president has his own views. He’s stated them many times. There’s nothing new here as far as I can tell,” Kudlow told CNBC’s “Squawk on the Street. “We all know the Fed is independent. The president is not dictating policy to the Fed. He didn’t say anything remotely like that.”

The discussion came a day after the Dow Jones Industrial Average fell more than 800 points amid fears about rising interest rates, the escalating trade battle with China and a number of other factors. The market weakness comes amid an economy growing strongly and the unemployment rate at a nearly 50-year low.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: jeff cox
Keywords: news, cnbc, companies, dictating, day, president, kudlow, white, bank, weakness, larry, central, amid, economic, policy, independent, views, economy, fed


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The European Central Bank could hike rates earlier than expected, El-Erian warns

The European Central Bank (ECB) could be prompted to raise interest rates sooner than planned against a backdrop of inflation and divergent monetary policy, according to Allianz’s Chief Economic Advisor, Mohamed El-Erian. But they’re going to retain optionality ’til the very last moment,” El-Erian told CNBC’s Nancy Hungerford Tuesday. El-Erian, a prominent economist and one-time CEO and co-CIO of bond giant PIMCO, said the interest rate policies of central banks were diverging quickly. And they’


The European Central Bank (ECB) could be prompted to raise interest rates sooner than planned against a backdrop of inflation and divergent monetary policy, according to Allianz’s Chief Economic Advisor, Mohamed El-Erian. But they’re going to retain optionality ’til the very last moment,” El-Erian told CNBC’s Nancy Hungerford Tuesday. El-Erian, a prominent economist and one-time CEO and co-CIO of bond giant PIMCO, said the interest rate policies of central banks were diverging quickly. And they’
The European Central Bank could hike rates earlier than expected, El-Erian warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: holly ellyatt
Keywords: news, cnbc, companies, earlier, bank, inflation, rates, ecb, interest, european, expected, hike, warns, central, summer, theyre, elerian, policy, going, rate


The European Central Bank could hike rates earlier than expected, El-Erian warns

The European Central Bank (ECB) could be prompted to raise interest rates sooner than planned against a backdrop of inflation and divergent monetary policy, according to Allianz’s Chief Economic Advisor, Mohamed El-Erian.

“It wouldn’t surprise me if they (the ECB) start hiking in the middle of summer (2019), as opposed to the end of the summer, or even the beginning of the summer. But they’re going to retain optionality ’til the very last moment,” El-Erian told CNBC’s Nancy Hungerford Tuesday.

El-Erian, a prominent economist and one-time CEO and co-CIO of bond giant PIMCO, said the interest rate policies of central banks were diverging quickly. The Federal Reserve has already embarked on rate hikes amid robust U.S. economic growth while the euro zone’s central bank, the ECB, is approaching rate hikes with caution. It has yet to increase rates with the 19-country euro zone still showing signs of regional weakness, and vulnerable to mounting global trade tensions.

“The interest rate dynamics are completely consistent with divergence in economic policy and divergence in performance,” El-Erian said, adding, “The question is, does it (raising rates in one country) break something somewhere else?”

“The ECB, in particular, is going to be put in a tough position because they’re dealing with high inflation. And they’re going to have to think very seriously as to whether to accelerate their rate hikes.”

The ECB has signaled that it will not raise record low interest rates before September 2019, a month before current President Mario Draghi is due to leave his post. In the meantime, headline inflation in the euro zone is expected to be 2.1 percent in September, up from 2 percent in the previous month, and above the bank’s target of below (but close to) 2 percent.

Although rising oil prices have been largely seen as the culprit for inflationary pressures (and energy costs can quickly change) if the inflation rate rises further it could put pressure on the ECB to act sooner rather than later. Inflation can be counteracted with higher interest rates. But the ECB itself signaled in September that it would not be looking to increase interest rates quickly — a policy it put in place after the sovereign debt crisis of 2011 that looked to stimulate lending and growth.

Asked about what approach the ECB might take to normalize its policy and raise interest rates, El-Erian said the central bank would have to be very cautious and might not fully signal its next move.

“I think they’ll want to have as much optionality and we’re not going to hear anything for a while,” he said.


Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: holly ellyatt
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China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders

US-China trade tensions are the ‘tip of the iceberg,’ analyst says 5 Hours Ago | 02:26On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend. The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The People’s Bank of China announced on Sunday it was cutting the r


US-China trade tensions are the ‘tip of the iceberg,’ analyst says 5 Hours Ago | 02:26On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend. The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The People’s Bank of China announced on Sunday it was cutting the r
China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: eustance huang
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China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders

US-China trade tensions are the ‘tip of the iceberg,’ analyst says 5 Hours Ago | 02:26

On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend.

The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The Shenzhen composite dropped by 3.834 percent to end at about 1,386.28 on the first trading day since the Golden Week holidays ended. As of 3:21 p.m. HK/SIN, Hong Kong’s Hang Seng index traded lower by 1.2 percent.

The People’s Bank of China announced on Sunday it was cutting the reserve requirement ratio (RRR) — or the amount of cash that banks have to hold as reserves — by 100 basis points effective Oct. 15. The RRR is currently 15.5 percent for large commercial banks and 13.5 percent for smaller lenders.

The move by China’s central bank, its fourth in 2018, came amid concerns about the economic impact of Beijing’s ongoing trade war with Washington.


Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: eustance huang
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US-China trade war: Central bank PBOC cuts banks RRR to save economy

The decision by China’s central bank to cut the amount of reserves held by banks is an indication that authorities in the world’s second-largest economy are getting nervous about a long-drawn trade war with the U.S., experts said. China insisted last month, in a 71-page paper, that its economy is “highly resilient” and Beijing is not afraid of a trade war. But the central bank’s move to ease some pressure on the banking sector signals that the situation in China is perhaps not all rosy, experts


The decision by China’s central bank to cut the amount of reserves held by banks is an indication that authorities in the world’s second-largest economy are getting nervous about a long-drawn trade war with the U.S., experts said. China insisted last month, in a 71-page paper, that its economy is “highly resilient” and Beijing is not afraid of a trade war. But the central bank’s move to ease some pressure on the banking sector signals that the situation in China is perhaps not all rosy, experts
US-China trade war: Central bank PBOC cuts banks RRR to save economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: yen nee lee
Keywords: news, cnbc, companies, central, panic, trade, financial, cuts, save, worst, china, securities, war, uschina, experts, chinese, pboc, economy, chinas, banks, rrr


US-China trade war: Central bank PBOC cuts banks RRR to save economy

The decision by China’s central bank to cut the amount of reserves held by banks is an indication that authorities in the world’s second-largest economy are getting nervous about a long-drawn trade war with the U.S., experts said.

China insisted last month, in a 71-page paper, that its economy is “highly resilient” and Beijing is not afraid of a trade war.

At the World Economic Forum in Tianjin, China in September, an official from the country’s securities regulator said there was nothing President Donald Trump’s administration could do to make a significant dent in the Chinese economy. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that the worst that could happen is the U.S. imposing levies on all Chinese imports, but that would only hit 0.7 percentage points of China’s growth.

But the central bank’s move to ease some pressure on the banking sector signals that the situation in China is perhaps not all rosy, experts noted.

“China is probably facing its worst period since the global financial crisis. All news is against it,” Fraser Howie, an independent analyst who has written books about China and its financial system, told CNBC’s “The Rundown” on Monday.

“They certainly want to play down any talks of panic or near panic … but they’re clear it’s not business as usual in China,” he added.


Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: yen nee lee
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Cramer: I don’t want a ‘Fed-mandated slowdown, but we sure seem to be getting one’ in the market

But I also like the stock market going higher,” Cramer said Monday on “Squawk on the Street.” “I don’t want to get a Fed-mandated slowdown, but we sure seem to be getting one.” Cramer said central bankers need to look at the economic data, which he says, show steady growth without problematic inflation. There’s no reason for the Fed to raise rates more aggressively, he contended. “A real slowdown in the economy could occur here; not a recession, but a slowdown.”


But I also like the stock market going higher,” Cramer said Monday on “Squawk on the Street.” “I don’t want to get a Fed-mandated slowdown, but we sure seem to be getting one.” Cramer said central bankers need to look at the economic data, which he says, show steady growth without problematic inflation. There’s no reason for the Fed to raise rates more aggressively, he contended. “A real slowdown in the economy could occur here; not a recession, but a slowdown.”
Cramer: I don’t want a ‘Fed-mandated slowdown, but we sure seem to be getting one’ in the market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: matthew j belvedere
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Cramer: I don't want a 'Fed-mandated slowdown, but we sure seem to be getting one' in the market

The shift at the Federal Reserve under Jerome Powell’s leadership from being data-dependent to being blinded by the desire to normalize interest rates could spell trouble for stocks, according to CNBC’s Jim Cramer.

“I happen to like Mr. Powell very much. But I also like the stock market going higher,” Cramer said Monday on “Squawk on the Street.” “I don’t want to get a Fed-mandated slowdown, but we sure seem to be getting one.”

Cramer said central bankers need to look at the economic data, which he says, show steady growth without problematic inflation. There’s no reason for the Fed to raise rates more aggressively, he contended. “A real slowdown in the economy could occur here; not a recession, but a slowdown.”

The “Mad Money” host expressed concerns about Powell’s comments last week, in which the Fed chair said the central bank still has a ways to go yet before it gets rates to where they are neither restrictive nor accommodative.

“The Fed being lockstep instead of being data-dependent is very bad for the stock market,” contended Cramer, longing for the Janet Yellen days at the Fed when data dependency was the mantra.

There’s been a debate for 10 years about when and how much the Fed should be taking its foot off the gas in terms of the easy money rates that were put in place to prop up economic growth, and by extension, risk assets in the wake of the 2008 financial crisis.

With a third increase this year, the current range for the Fed’s benchmark rate is 2 percent to 2.25 percent. Projections released after last month’s policy meeting indicated central bankers were likely to take the funds rate to 3.4 percent before pausing. Another 0.25 percent rate rise is expected in December.

“We do not want American industry choked off, particularly at a time when we’re putting through tariffs,” said Cramer, whose argument echoes criticism President Donald Trump levied at Powell in a July interview on CNBC and elsewhere.

Trump told CNBC’s Joe Kernen about month after the Fed’s June rate hike that he is “not happy” that every time the economy shows more strength “they want to raise rates again.” But in this rare White House rebuke of the Fed, Trump also said, referring to Powell, that he “put a very good man” in charge of the central bank.


Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: matthew j belvedere
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China cuts some banks’ reserve requirements to spur growth

Reserve requirement ratios (RRRs) – currently 15.5 percent for large institutions and 13.5 percent for smaller banks – would be cut by 100 basis points effective Oct. 15, the PBOC said. The “very timely” RRR cut is big enough to help boost confidence in the economy, said Xu Hongcai, deputy chief economist at the China Center for International Economic Exchanges, a Beijing think tank. The central bank said on Sunday it would continue to take necessary measures to stabilize market expectations, wh


Reserve requirement ratios (RRRs) – currently 15.5 percent for large institutions and 13.5 percent for smaller banks – would be cut by 100 basis points effective Oct. 15, the PBOC said. The “very timely” RRR cut is big enough to help boost confidence in the economy, said Xu Hongcai, deputy chief economist at the China Center for International Economic Exchanges, a Beijing think tank. The central bank said on Sunday it would continue to take necessary measures to stabilize market expectations, wh
China cuts some banks’ reserve requirements to spur growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-07  Authors: jason lee
Keywords: news, cnbc, companies, china, pboc, economy, yuan, banks, rrr, requirements, cuts, reserve, cut, central, spur, trade, growth, bank


China cuts some banks' reserve requirements to spur growth

China’s central bank said on Sunday it would cut the amount of cash that most banks must hold as reserves to lower financing costs and spur growth, amid concerns over a potential economic drag from an escalating trade dispute with the United States.

The reserve requirement cut, the fourth by the People’s Bank of China (PBOC) this year, comes after Beijing has pledged to expedite plans to invest billions of dollars in infrastructure projects as the economy shows signs of cooling further, with investment growth slowing to a record low.

Reserve requirement ratios (RRRs) – currently 15.5 percent for large institutions and 13.5 percent for smaller banks – would be cut by 100 basis points effective Oct. 15, the PBOC said.

The central bank will inject a net 750 billion yuan ($109.2 billion) in cash into the banking system with the cut by releasing a total of 1.2 trillion yuan in liquidity, with 450 billion yuan of that to offset maturing medium-term lending facility (MLF) loans.

The RRR cut, announced on the last day of China’s week-long National Day holiday, shows the central bank is probably worried about the impact of “external shocks” to markets such as a speech last week by U.S. Vice President Mike Pence, said Zhang Yi, chief economist at Zhonghai Shengrong Capital Management.

Pence intensified Washington’s pressure campaign against Beijing on Thursday by accusing China of “malign” efforts to undermine U.S. President Donald Trump ahead of next month’s congressional elections and reckless military actions in the South China Sea.

Pence’s speech marked a sharpened U.S. approach toward China, going beyond the bitter trade war between the world’s two biggest economies, which has magnified concerns about the outlook for China’s economy.

Weakening exports were already a drag on growth in the first half of the year after giving an added boost to the economy last year, highlighting the need for sustained strength in domestic demand if significant new U.S. tariffs are imposed.

The “very timely” RRR cut is big enough to help boost confidence in the economy, said Xu Hongcai, deputy chief economist at the China Center for International Economic Exchanges, a Beijing think tank.

“The trade war’s impact on the economy is showing. There is room for further reductions and I expect another 1 percentage point cut by the year-end,” Xu added.

The central bank said on Sunday it would continue to take necessary measures to stabilize market expectations, while maintaining a prudent and neutral monetary policy.

The PBOC would “maintain reasonably ample liquidity to drive the reasonable growth of monetary credit and social financing scale,” it said.

The RRR cut would not create depreciation pressure on the yuan, the PBOC said, adding that the central bank would keep the foreign exchange markets stable.


Company: cnbc, Activity: cnbc, Date: 2018-10-07  Authors: jason lee
Keywords: news, cnbc, companies, china, pboc, economy, yuan, banks, rrr, requirements, cuts, reserve, cut, central, spur, trade, growth, bank


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