Another Asian central bank cuts interest rates — analysts say the region’s not done easing yet

Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall. Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing. A lower


Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall. Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing. A lower
Another Asian central bank cuts interest rates — analysts say the region’s not done easing yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: yen nee lee
Keywords: news, cnbc, companies, central, inflation, regions, monetary, global, easing, growth, rates, policy, rate, economy, say, indonesias, analysts, bank, interest, asian, cuts


Another Asian central bank cuts interest rates — analysts say the region's not done easing yet

Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall.

Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing.

Perry Warjiyo, Indonesia’s central bank governor, told CNBC on Friday there’s room to cut interest rates this time because inflation for the year is expected to remain within its target range of 2.5% to 4.5%. That will help Indonesia to maintain its growth momentum at a time when the ongoing tariff fight between the U.S. and China has held back global economic activity, he explained.

A lower interest rate environment generally encourages businesses and consumers to spend more, which boost the economy but could cause inflation to rise. Prices rising too much and too quickly are harmful for the economy, so central banks typically adjust monetary policies to keep inflation in check.

“This is a preemptive move to support our growth momentum and to anticipate the possibility of downward risks on the global economic outlook going forward,” Warjiyo told CNBC’s “Street Signs.”

The central bank expects Indonesia’s economy to grow between 5% and 5.4% this year. Last year, the country — Southeast Asia’s largest economy — grew by 5.17%.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: yen nee lee
Keywords: news, cnbc, companies, central, inflation, regions, monetary, global, easing, growth, rates, policy, rate, economy, say, indonesias, analysts, bank, interest, asian, cuts


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Bullard says Fed should ‘take out the insurance’ with a rate cut and can always take it back

St. Louis Fed President James Bullard likes the idea of an “insurance” rate cut from the Federal Reserve. Insurance cuts were used in 1995 and 1998 by the Alan Greenspan-led Fed to combat an economic slowdown and successfully prolong the expansion that wound up being the second longest in U.S. history. “I think that’s a good model or baseline case for what could happen here,” said Bullard. “There’s some downside risk, and I think you’d like to take out some insurance against that downside risk a


St. Louis Fed President James Bullard likes the idea of an “insurance” rate cut from the Federal Reserve. Insurance cuts were used in 1995 and 1998 by the Alan Greenspan-led Fed to combat an economic slowdown and successfully prolong the expansion that wound up being the second longest in U.S. history. “I think that’s a good model or baseline case for what could happen here,” said Bullard. “There’s some downside risk, and I think you’d like to take out some insurance against that downside risk a
Bullard says Fed should ‘take out the insurance’ with a rate cut and can always take it back Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, cut, think, risk, rates, thats, yield, rate, cuts, bullard, insurance, inverted, fed


Bullard says Fed should 'take out the insurance' with a rate cut and can always take it back

St. Louis Fed President James Bullard likes the idea of an “insurance” rate cut from the Federal Reserve.

“You take out the insurance, if nothing happens you take it back,” Bullard told CNBC’s Steve Liesman on Friday from the Fed’s economic policy symposium in Jackson Hole, Wyoming.

“It’s always the case with insurance that you can say: ‘Well, you made these cuts and it turned out the economy continued to grow.’ That’s OK, you can just come back and take the cuts back,” he said.

Insurance cuts were used in 1995 and 1998 by the Alan Greenspan-led Fed to combat an economic slowdown and successfully prolong the expansion that wound up being the second longest in U.S. history. The central bank slashed interest rates three times, a total of 75 basis points, during both periods against risks stemming from Mexican and Russian defaults and the collapse of hedge fund Long-Term Capital Management.

“I think that’s a good model or baseline case for what could happen here,” said Bullard.

A global manufacturing contraction and a U.S.-China trade war are weighing on global growth, said Bullard.

“There’s some downside risk, and I think you’d like to take out some insurance against that downside risk and I’d like to take out more insurance,” said Bullard. “We can take the insurance back next year if it turns out that this is all going to blow over.”

Bullard, who is a voting member of the Federal Open Market Committee this year, also said the Fed should cut rates because inverted yield curve is “not a good place to be.”

The bond market’s main yield curve inverted briefly for the third time in less than two weeks on Thursday.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, cut, think, risk, rates, thats, yield, rate, cuts, bullard, insurance, inverted, fed


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Trump reverses course, says he’s not considering tax cuts, because of ‘strong economy’

President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. A White House official first denied a report Monday that the administration would consider a payroll tax reduction. But the president backtracked on Wednesday, tamping down talk about either trimming payroll taxes or indexing capital gains to inflation. “I’m not looking at a tax cut now. We have a strong economy,” the president told reporters on the White House lawn when asked if he wo


President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. A White House official first denied a report Monday that the administration would consider a payroll tax reduction. But the president backtracked on Wednesday, tamping down talk about either trimming payroll taxes or indexing capital gains to inflation. “I’m not looking at a tax cut now. We have a strong economy,” the president told reporters on the White House lawn when asked if he wo
Trump reverses course, says he’s not considering tax cuts, because of ‘strong economy’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jacob pramuk
Keywords: news, cnbc, companies, tax, payroll, taxes, strong, consider, hes, trump, president, cuts, course, recession, reverses, considering, house, economy, cut, white


Trump reverses course, says he's not considering tax cuts, because of 'strong economy'

President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019.

President Donald Trump insisted Wednesday that his administration will not cut taxes to turn aside an economic slowdown — only a day after he said he would consider tax policy changes.

It follows several days of mixed messaging from the White House on whether it would respond to growing concerns about a potential recession. Trump has spent the week arguing the U.S. has the strongest economy in the world — while urging the Federal Reserve to chop interest rates, a step typically taken during cycles of economic weakness.

A White House official first denied a report Monday that the administration would consider a payroll tax reduction. By Tuesday, Trump said he was “thinking about” cutting the levies — though he stressed that “whether or not we do something now, it’s not being done because of a recession.”

But the president backtracked on Wednesday, tamping down talk about either trimming payroll taxes or indexing capital gains to inflation. Trump’s comments continue the president and his administration’s struggle to clarify whether and how it would change U.S. tax policy in the face of recession fears.

“I’m not looking at a tax cut now. We don’t need it. We have a strong economy,” the president told reporters on the White House lawn when asked if he would consider a payroll tax cut.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jacob pramuk
Keywords: news, cnbc, companies, tax, payroll, taxes, strong, consider, hes, trump, president, cuts, course, recession, reverses, considering, house, economy, cut, white


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Oil rises as US retail sales ease recession fears

Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy. U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday. An inverted Treasury yield curve is historically a reliable predictor of looming recessions. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.


Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy. U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday. An inverted Treasury yield curve is historically a reliable predictor of looming recessions. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.
Oil rises as US retail sales ease recession fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16
Keywords: news, cnbc, companies, output, economic, oil, cuts, treasury, fears, sales, data, crude, opec, weakening, ease, rises, yield, recession, retail


Oil rises as US retail sales ease recession fears

Crude oil prices rose on Friday following two days of declines, buoyed after data showing an increase in retail sales in the U.S. helped dampen concerns about a recession in the world’s biggest economy.

Brent crude was up 52 cents, or 0.9%, at $58.75 a barrel at 0352 GMT, after falling 2.1% on Thursday and 3% the previous day.

U.S. crude was up 65 cents, or 1.2%, at $55.12 a barrel, having dropped 1.4% the previous session and 3.3% on Wednesday.

U.S. retail sales rose 0.7% in July as consumers bought a range of goods even as they cut back on motor vehicle purchases, according to data that came a day after a key part of the U.S. Treasury yield curve inverted for the first time since June 2007 prompting a sell-off in stocks and crude oil.

An inverted Treasury yield curve is historically a reliable predictor of looming recessions.

“The rebound has a corrective look about it on thin volumes, rather than a beachhead for an impending rebound,” said Jeffrey Halley, senior market analyst at OANDA. “Overall, U.S. data continues to be a bright spot in a dark economic universe.”

Gains are likely to be capped after a week of data releases including a surprise drop in industrial output growth in China to a more than 17-year low, along with a fall in exports that sent Germany’s economy into reverse in the second quarter.

“The broader story around global economic growth has been a weak one, or a weakening one and expectations (are for) further weakening,” Phin Ziebell, senior economist at National Australia Bank, said by phone.

The price of Brent is still up nearly 10% this year thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+. In July, OPEC+ agreed to extend oil output cuts until March 2020 to prop up prices.

“At what point will further output cuts be needed at the back end of this year from OPEC and Russia to keep things going the way they are?” Zeibell said, given the broader economic outlook.

A Saudi official on Aug. 8 indicated more steps may be coming, saying “Saudi Arabia is committed to do whatever it takes to keep the market balanced next year.”

But the efforts of OPEC+ have been outweighed by worries about the global economy amid the U.S.-China trade dispute and uncertainty over Brexit, as well as rising U.S. stockpiles of crude and higher output of U.S. shale oil.


Company: cnbc, Activity: cnbc, Date: 2019-08-16
Keywords: news, cnbc, companies, output, economic, oil, cuts, treasury, fears, sales, data, crude, opec, weakening, ease, rises, yield, recession, retail


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Trump’s tax cut isn’t giving the US economy the boost it needs

If ever the U.S. economy could use a strong tax cut tail wind, it could use one now as conditions weaken around the world. Those levels assure the failure of another tax cut promise. Tax cut backers painted a picture of robust new business investment that would revive American manufacturing and create good-paying jobs at home. Increased demand was itself limited by the fact that so much of the tax cut proceeds went to higher-income households with lower propensity to spend. But there’s no sign t


If ever the U.S. economy could use a strong tax cut tail wind, it could use one now as conditions weaken around the world. Those levels assure the failure of another tax cut promise. Tax cut backers painted a picture of robust new business investment that would revive American manufacturing and create good-paying jobs at home. Increased demand was itself limited by the fact that so much of the tax cut proceeds went to higher-income households with lower propensity to spend. But there’s no sign t
Trump’s tax cut isn’t giving the US economy the boost it needs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: john harwood
Keywords: news, cnbc, companies, economic, cuts, growth, tax, trump, trumps, cut, isnt, economy, investment, business, economists, boost, needs, giving, president


Trump's tax cut isn't giving the US economy the boost it needs

President Donald Trump promotes a newly unveiled Republican tax plan as he meets with House Republican leaders and Republican members of the House Ways and Means Committee in the Cabinet Room of the White House in Washington, November 2, 2017.

If ever the U.S. economy could use a strong tax cut tail wind, it could use one now as conditions weaken around the world.

But the tail wind isn’t there.

Instead, benefits from what President Donald Trump called “the biggest reform of all time” to the tax code have dwindled to a faint breeze just 20 months after its enactment. Half of corporate chief financial officers surveyed by Duke University expect the economy to shrink by the second quarter of 2020. Two-thirds expect a recession by the end of next year.

Corporate executives blame the darkening outlook on Trump’s trade war with China. The president blames mismanagement by Jerome Powell, the Federal Reserve chairman he appointed.

But economists who have examined the impact of the 2017 Tax Cuts and Jobs Act say it isn’t helping much in any of the ways advocates once advertised: overall growth, business investment, or worker pay. The strongest current case for the law’s economic benefits is that it remains too early to see them.

Most broadly, the tax cuts have not generated the promised growth of 3% or more – even in tandem with the additional stimulus of large government spending increases that Congress enacted separately. After an uptick in the second quarter of 2018, growth declined in the next two quarters to end up at 2.9% for the year.

Goldman Sachs economist Jan Hatzius says that second-quarter surge – initially measured at 4.2% but later revised down to 3.5% – represented the tax law’s peak impact. He expects it to vanish altogether by late this year or early 2020, as the economy returns to the same 2% growth levels Trump inherited from President Barack Obama.

Those levels assure the failure of another tax cut promise. Trump and congressional Republicans insisted the law would spur so much economic activity that surging new revenues would replace those lost through lower tax rates.

In reality, deficits have soared back toward the $1 trillion mark reached during the Wall Street crisis and Great Recession a decade ago. A Congressional Research Service analysis concluded that the law has produced no more than 5% of the growth needed to offset tax cut losses.

Tax cut backers painted a picture of robust new business investment that would revive American manufacturing and create good-paying jobs at home. But investment and manufacturing have slumped so much lately that Powell cited their weakness in announcing interest rate cuts last month.

Economists say the improved 2018 growth resulted largely from the boost in aggregate demand generated by tax cuts and spending hikes. Increased demand was itself limited by the fact that so much of the tax cut proceeds went to higher-income households with lower propensity to spend.

Today, “the economic benefits of the Tax Cuts and Jobs Act seem to have petered out,” Tax Policy Center analysts wrote early this month. “The economy’s strength now seems to lie almost entirely with consumer spending.”

Like overall growth, business investment spiked temporarily in 2018. Economists disagree on whether that stemmed from new incentives in the tax cut law or just oil price increases that encouraged more domestic energy production.

An analysis by Alexander Arnon at the University of Pennsylvania’s Penn Wharton Budget Model found that the rising price of oil “explains the entire increase in the growth rate of investment in 2018.” The Penn Wharton Budget Model is directed by Kent Smetters, a former economist for President George W. Bush.

The idea that lower taxes would boost business investment sounds intuitive. But in examining lackluster investment growth after the 2017 tax cut compared with earlier ones, International Monetary Fund economists this spring identified an explanation: corporate consolidation has freed dominant firms with high profit margins to invest as they choose with less regard for government tax rates.

“In an environment of rising market power, corporate tax cuts become less effective at raising investment,” the IMF economists wrote.

The economic expansion that began in 2010, now the longest in American history, has driven unemployment down to a 50-year low. But there’s no sign the tax cut has fattened paychecks very much for average workers.


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: john harwood
Keywords: news, cnbc, companies, economic, cuts, growth, tax, trump, trumps, cut, isnt, economy, investment, business, economists, boost, needs, giving, president


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GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s


Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s
GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief.

“Anything we raise in tariffs, we should give back to the rank and public in tax reductions,” the Florida senator said in a “Squawk Box ” interview, acknowledging there’s been some “short-term pain.”

“We have to help American farmers open up more markets around the world,” said Scott, who did not elaborate on what such relief might look like.

Data from U.S. Customs and Border Protection, which collects taxes on imports, showed the U.S. had assessed $23.7 billion in tariffs from early 2018 through May 1. According to a Reuters report, total tariff revenue rose 73% in the first half of 2019 from a year earlier.

The trade dispute between the world’s two largest economies has been escalating in recent months, with investors fearing that it could slow global and U.S. economic growth. In fact, Goldman Sachs lowered its fourth-quarter U.S. growth forecast by 0.2% to 1.8%, with the cumulative drag on gross domestic product of 0.6%.

President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods.

“We have to help American companies … and get more American jobs and stop helping China,” Scott said. “Stop acting like they are a partner,” adding he doesn’t see how a trade deal can be reached.

“I’m not sure what else we can do, other than stand up for American interests and American values,” he wondered. “I’m not sure what the president can do otherwise than the tariffs he is doing.”


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


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Tumbling bond yields ramp up the pressure for the Fed to cut rates

After the rate cut approved last week, Fed Chairman Jerome Powell quickly doused market expectations that the move was a sign of an extended period of monetary easing. The Federal Reserve’s “midcycle adjustment” to interest rates could be morphing into something considerably more serious, judging by recent market action. As a result, Powell’s characterization of the reduction is a “midcycle adjustment” looks considerably less likely. “That’s why I think the Fed really made a mistake by only cutt


After the rate cut approved last week, Fed Chairman Jerome Powell quickly doused market expectations that the move was a sign of an extended period of monetary easing. The Federal Reserve’s “midcycle adjustment” to interest rates could be morphing into something considerably more serious, judging by recent market action. As a result, Powell’s characterization of the reduction is a “midcycle adjustment” looks considerably less likely. “That’s why I think the Fed really made a mistake by only cutt
Tumbling bond yields ramp up the pressure for the Fed to cut rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: jeff cox
Keywords: news, cnbc, companies, fed, pressure, midcycle, adjustment, cut, market, reduction, considerably, yields, bond, rates, tumbling, yield, powell, ramp, thats, cuts


Tumbling bond yields ramp up the pressure for the Fed to cut rates

But things have changed considerably in just a week, and financial markets have responded accordingly as bonds have pointed even more strongly to a recession on the horizon. The 10-year Treasury yield hit a three-year low Wednesday, and the inversion between benchmark note’s yield and its 3-month counterpart increased by the most in more than 12 years.

After the rate cut approved last week, Fed Chairman Jerome Powell quickly doused market expectations that the move was a sign of an extended period of monetary easing. Powell mostly expressed optimism in the economy, saying that the quarter percentage point reduction likely was not “the beginning of a lengthy cutting cycle.”

The Federal Reserve’s “midcycle adjustment” to interest rates could be morphing into something considerably more serious, judging by recent market action.

The sharp drop in Treasury yields, spurred by worries of a global slowdown, an intensifying trade war and cuts from central banks in New Zealand, India and China, pushed up anticipation that the Fed would follow suit aggressively, despite Powell’s assessment.

“The Fed and the market are both looking at the same set of facts, and the outlook has gotten more pessimistic,” said Lou Crandall, chief economist at Wrightson ICAP. “Chair Powell has said in the past when the yield curve is inverted, the business community takes that as a recession signal and that affects their own planning. The fed is cognizant of that.”

As a result, Powell’s characterization of the reduction is a “midcycle adjustment” looks considerably less likely.

Markets anticipate a 100% chance of another quarter-point cut in September, with about a 1 in 3 probability of a half-point reduction. They also see about a 60% chance of two more cuts before the end of the year, according to the CME.

“So much of this is psychological,” said Joseph LaVorgna, chief Americas economist at Natixis. “That’s why I think the Fed really made a mistake by only cutting by 25 basis points. But they compounded it by calling it a midcycle adjustment. That’s just not the thing to say.”

President Donald Trump agrees — in a three-part tweet Wednesday morning, the president said the Fed needs to enact “bigger and faster” rate cuts. It was Trump’s own tweeting last Thursday that the administration now intends to enact tariffs on all Chinese goods entering the U.S. that kicked off the latest leg in volatility.

The Fed finds itself in a complicated place between expectations from the market’s assumptions and Trump’s demand against an economy central bank officials characterize as continuing to grow with a strong labor market.

The messaging of a “midcycle adjustment” could be problematic if the Fed sees a need to move more aggressively, and it repeats the communication problems it has had for much of the past year.

“You have to figure out a way to put the genie back in the bottle. I don’t know if that can happen, but that’s what I would do. Have fewer press conferences, give less information,” LaVorgna said. “The Fed is … making themselves accountable for things they can neither control nor predict.”


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: jeff cox
Keywords: news, cnbc, companies, fed, pressure, midcycle, adjustment, cut, market, reduction, considerably, yields, bond, rates, tumbling, yield, powell, ramp, thats, cuts


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Central banks around the world are surprising markets with aggressive rate cuts: Here’s why

The Reserve Bank of Australia, meanwhile, held rates at a record low following cuts in June and July. Central banks in New Zealand, India and Thailand all announced larger-than-expected cuts to interest rates on Wednesday, furthering a global trend of monetary policy easing. The main takeaway from the raft of monetary policy easing points to central banks signaling major concerns about the outlook for economic growth, and resorting to sharp monetary policy action in order to stave off a downturn


The Reserve Bank of Australia, meanwhile, held rates at a record low following cuts in June and July. Central banks in New Zealand, India and Thailand all announced larger-than-expected cuts to interest rates on Wednesday, furthering a global trend of monetary policy easing. The main takeaway from the raft of monetary policy easing points to central banks signaling major concerns about the outlook for economic growth, and resorting to sharp monetary policy action in order to stave off a downturn
Central banks around the world are surprising markets with aggressive rate cuts: Here’s why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: elliot smith
Keywords: news, cnbc, companies, banks, rates, policy, reserve, markets, heres, cuts, monetary, low, bank, aggressive, surprising, cut, rate, central, world


Central banks around the world are surprising markets with aggressive rate cuts: Here's why

The Reserve Bank of New Zealand (RBNZ) stunned markets with a 50 basis point cut , twice the expected level, to take its official cash rate to an all-time low of 1%. The Reserve Bank of Australia, meanwhile, held rates at a record low following cuts in June and July.

The Reserve Bank of India cut rates by 35 basis points for a fourth straight meeting this year, while the Bank of Thailand unexpectedly cut its rate by 25 basis points for the first time since 2015.

Central banks in New Zealand, India and Thailand all announced larger-than-expected cuts to interest rates on Wednesday, furthering a global trend of monetary policy easing.

The main takeaway from the raft of monetary policy easing points to central banks signaling major concerns about the outlook for economic growth, and resorting to sharp monetary policy action in order to stave off a downturn. Central banks often resort to lower interest rates in environments like this in order to boost money supply in the economy, stoke demand and provide an impetus to growth.

Rabbani Wahhab, senior fixed income portfolio manager at London & Capital, told CNBC on Wednesday that the timing and size of the rate cuts from New Zealand, Thailand and India sends out a clear message to their respective economies and the rest of the world.

He further pointed out that the central banks are of the opinion that “it’s not just the large economic blocs such as the U.S. and the euro zone that need easier monetary conditions, but other economies which are part of the global machine.”

The key drivers for monetary policy loosening from central bankers are softening domestic outlooks, falling annual growth rates and expectations, low inflation and weakening business and consumer confidence.

Global long-term interest rates have declined to historically low levels to accommodate this, with the European Central Bank (ECB) citing these concerns as it hinted at a potential rate cut later this year, along with the U.S. Federal Reserve, which last month announced its first cut since the 2008 financial crisis. The regional headwinds are compounded at the moment, however, by the risks to global growth arising from the ongoing trade war between the U.S. and China.

“The common worry among global central bankers is disinflation, which in itself is often a precursor to slowing economic activity. This is the reason why we are likely to see more central banks move over the course of the next few weeks,” Wahhab said.


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: elliot smith
Keywords: news, cnbc, companies, banks, rates, policy, reserve, markets, heres, cuts, monetary, low, bank, aggressive, surprising, cut, rate, central, world


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Cloudflare cuts service to 8chan after El Paso shooting, CEO calls it ‘a cesspool of hate’

U.S. cybersecurity company Cloudflare said on Monday it was terminating services to online message board 8chan after the suspected gunman in the weekend’s El Paso shooting appeared to have used the website before he went on a rampage. “We just sent notice that we are terminating 8chan as a customer effective at midnight tonight Pacific Time,” Matthew Prince, CEO of Cloudflare, wrote in a blog post. Cloudflare provides services to help web sites stay online and load faster. “Based on evidence we’


U.S. cybersecurity company Cloudflare said on Monday it was terminating services to online message board 8chan after the suspected gunman in the weekend’s El Paso shooting appeared to have used the website before he went on a rampage. “We just sent notice that we are terminating 8chan as a customer effective at midnight tonight Pacific Time,” Matthew Prince, CEO of Cloudflare, wrote in a blog post. Cloudflare provides services to help web sites stay online and load faster. “Based on evidence we’
Cloudflare cuts service to 8chan after El Paso shooting, CEO calls it ‘a cesspool of hate’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, cuts, cesspool, online, users, cloudflare, shooting, walmart, hate, 8chan, el, service, terminating, suspected, ceo, sites, calls, paso


Cloudflare cuts service to 8chan after El Paso shooting, CEO calls it 'a cesspool of hate'

U.S. cybersecurity company Cloudflare said on Monday it was terminating services to online message board 8chan after the suspected gunman in the weekend’s El Paso shooting appeared to have used the website before he went on a rampage.

“We just sent notice that we are terminating 8chan as a customer effective at midnight tonight Pacific Time,” Matthew Prince, CEO of Cloudflare, wrote in a blog post.

Cloudflare provides services to help web sites stay online and load faster. In particular, it provides protection against denial-of-service attacks, meaning when this protection is lifted, sites may be effectively taken offline. 8chan has been experiencing intermittent lengthy outages since Cloudflare pulled out.

On Saturday, a suspected shooter was said to have posted an anti-immigrant and anti-government screed on the forum before opening fire at a Walmart in El Paso, Texas, which left at least 20 people dead and another 26 wounded.

His post was deleted from one of 8chan’s forums after the shooting started, but forum users archived the document, which contained a link to a PDF version, NBC News reported.

The suspect, identified as 21-year-old Patrick Wood Crusius, cited in his note that the gunman who killed 51 people at a mosque in Christchurch, New Zealand, in March was an inspiration, according to NBC News. The Christchurch shooter had live-streamed the attack online.

“Based on evidence we’ve seen, it appears that he posted a screed to the site immediately before beginning his terrifying attack on the El Paso Walmart killing 20 people,” Prince wrote.

“8chan has repeatedly proven itself to be a cesspool of hate,” he said.

Prince added that even if the online message board did not violate the law by refusing to moderate the “hate-filled” content uploaded by users, it created “an environment that revels in violating its spirit.”

— Reuters and CNBC’s Spencer Kimball contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, cuts, cesspool, online, users, cloudflare, shooting, walmart, hate, 8chan, el, service, terminating, suspected, ceo, sites, calls, paso


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This Social Security rule cuts public workers’ benefits. Politicians want to change that

Legislators on Capitol Hill are looking to change a Social Security rule that some say leaves public workers, including teachers, firefighters and police officers, in the lurch when it comes to their retirement income. Its mission: to replace the Social Security Windfall Elimination Provision with a new formula that would protect individuals who have worked in jobs not covered by Social Security. “We start Social Security reform by making sure our teachers, firefighters and police receive the So


Legislators on Capitol Hill are looking to change a Social Security rule that some say leaves public workers, including teachers, firefighters and police officers, in the lurch when it comes to their retirement income. Its mission: to replace the Social Security Windfall Elimination Provision with a new formula that would protect individuals who have worked in jobs not covered by Social Security. “We start Social Security reform by making sure our teachers, firefighters and police receive the So
This Social Security rule cuts public workers’ benefits. Politicians want to change that Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: lorie konish
Keywords: news, cnbc, companies, benefits, security, social, rule, receive, workers, teachers, cuts, jobs, change, means, wep, politicians, public


This Social Security rule cuts public workers' benefits. Politicians want to change that

Legislators on Capitol Hill are looking to change a Social Security rule that some say leaves public workers, including teachers, firefighters and police officers, in the lurch when it comes to their retirement income. Rep. Kevin Brady, R-Texas, has put forward a new version of a bill he has advocated for in the past. Its mission: to replace the Social Security Windfall Elimination Provision with a new formula that would protect individuals who have worked in jobs not covered by Social Security.

House Ways and Means Committee Chairman Richard Neal, D-Mass., and ranking member Rep. Kevin Brady, R-Texas, talk before a hearing on on Capitol Hill on May 16, 2019 in Washington, DC. (Photo by Chip Somodevilla/Getty Images) Chip Somodevilla | Getty Images News | Getty Images

Brady, the lead Republican on the House Ways and Means Committee, addressed the issue at a committee Social Security hearing last week. “Democrats often cry you don’t have a plan,” Brady said. “We do. “We start Social Security reform by making sure our teachers, firefighters and police receive the Social Security they have earned, just like every other American worker,” he added. The Windfall Elimination Provision, or WEP, went into effect along with Social Security reform changes that were enacted in 1983. The rule means certain workers who are eligible for Social Security retirement or disability benefits, but who have also worked for employers who don’t withhold Social Security taxes, receive reduced benefits. The logic behind the rule is that those workers also receive pensions from their other jobs, often in the public service sector. The WEP has some exceptions. For example, it does not apply to workers who have 30 or more years of substantial earnings under Social Security. It also does not apply to survivors’ benefits. Still, the WEP – and the fact that there’s a reduction in benefits – is often a disappointment and sometimes a surprise to affected workers, said Monty Exter, senior lobbyist at the Association of Texas Professional Educators. Exter said he hears from teachers “on a weekly, sometimes daily” basis on this issue. Most teachers in Texas do not pay into Social Security while they are educators. But many of them earn income outside of teaching in summer jobs, or if they work in other jobs before or after their careers as teachers, Exter said.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: lorie konish
Keywords: news, cnbc, companies, benefits, security, social, rule, receive, workers, teachers, cuts, jobs, change, means, wep, politicians, public


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