Millions of Americans are only $400 away from financial hardship

An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation. Emergency expensesIf faced with an unexpected expense of $400, 61% of adults could cover it with cash, savings, or a credit card paid off at the next statement. A recent survey from the New York Fed found an alarming rise in credit card delinquencies among younger Americans of 90 days or more. Race and limited access to financial servicesThe percentage of American adults who remai


An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation. Emergency expensesIf faced with an unexpected expense of $400, 61% of adults could cover it with cash, savings, or a credit card paid off at the next statement. A recent survey from the New York Fed found an alarming rise in credit card delinquencies among younger Americans of 90 days or more. Race and limited access to financial servicesThe percentage of American adults who remai
Millions of Americans are only $400 away from financial hardship Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: eric rosenbaum, eric roberge, founder, financial planner at beyond your hammock
Keywords: news, cnbc, companies, millions, economic, card, expense, fed, pay, americans, adults, unexpected, hardship, 400, unbanked, financial, credit, away


Millions of Americans are only $400 away from financial hardship

A woman enters an All American Check Cashing location in Brandon, Miss., May 12, 2017. Rogelio V. Solis | AP

Many Americans describe their situation as financially stable, but economic fragility is persistent across the U.S., especially related to income level, educational attainment, and ethnicity and race. An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation. That’s according to the just-released “Report on the Economic Well-being of U.S. Households for 2018,” a study that Fed has been conducting since 2013. The Fed survey finds that many families have experienced substantial gains since 2013, but the decade-long economic expansion and the low unemployment has done “little to narrow the persistent economic disparities by race, education, and geography.” The Fed indicated that a primary goal of the 2018 study was to explore the reasons behind persistent financial fragility across much of the U.S. Seventy-five percent of adults say they are either doing “okay” or “living comfortably,” up 12 percentage points from the first study in 2013. The picture changes when race is factored into the responses. Nearly 8 in 10 whites are at least doing okay financially versus two-thirds of blacks and Hispanics, and that gap has not budged since 2013.

Emergency expenses

If faced with an unexpected expense of $400, 61% of adults could cover it with cash, savings, or a credit card paid off at the next statement. But 27% would have to borrow or sell something to pay for the expense; 12% would not be able to cover the expense. Seventeen percent of adults are not able to pay all of their current month’s bills in full, led by credit card bills. Another 12 percent of adults would be unable to pay their current month’s bills if they also had an unexpected $400 expense that they had to pay.

A recent survey from the New York Fed found an alarming rise in credit card delinquencies among younger Americans of 90 days or more. Medical expenses remain a point of financial stress, with one-fifth of adults saying they had major, unexpected medical bills to pay in the prior year. One quarter of adults said they skipped necessary medical care in 2018 because they were unable to afford the cost.

Race and limited access to financial services

The percentage of American adults who remain unbanked and underbanked are higher among minorities. Fourteen percent of blacks and 11% of Hispanics are unbanked, versus 4 percent of whites. The unbanked or underbanked also are more likely to have low income, and less education. One percent of those with incomes over $40,000 are unbanked, versus 14 percent of those with incomes under that threshold. More from Invest in You Military families are living on the financial edge

Retirement looms. Here is how to catch up on investing, fast

Think buying a home is a great investment? Think again Being unbanked leads to reliance on higher-cost financial services. One-fifth of adults still cannot access traditional banks and credit unions. and 89% of people who use alternative financial services purchase a money order or cash a check at a place other than a bank. Twenty-eight percent borrowed money, including payday loans, paycheck advances, pawn shop or auto title loans, and tax refund advances. Thirty-five percent of blacks and 23 percent of Hispanics use alternative financial services, compared to 11 percent of whites. More than one-fourth of blacks are not confident that a new credit card application would be approved if they applied—over twice the rate among whites.

Retirement savings remains a struggle

Only 36% of non-retired adults think that their retirement saving is on track. One-quarter have no retirement savings or pension. Among non-retired adults over the age of 60, less than half (45%) believe that their retirement saving is on track. Even among Americans with access to 401(k) and IRA plans, Six in 10 told the Fed they have little or no comfort in managing their investments.

Education and race

The ballooning student loan debt, now at roughly $1.5 trillion and the second-largest source of debt in the U.S. after mortgages is a national crisis, with a typical monthly payment between $200 and $299 per month. But higher education remains a key to economic well-being. Adults with a bachelor’s degree or higher are significantly more likely to be doing at least okay financially (87%) than those with a high school degree or less (64%). However, the Fed survey finds that minorities are much more likely to attend for-profit schools, and struggle with student loans after graduation and question their educational choices.


Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: eric rosenbaum, eric roberge, founder, financial planner at beyond your hammock
Keywords: news, cnbc, companies, millions, economic, card, expense, fed, pay, americans, adults, unexpected, hardship, 400, unbanked, financial, credit, away


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Gold hovers near two-week low on strong dollar ahead of Fed minutes

Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion ahead of the minutes from U.S. Federal Reserve’s latest meeting. Spot gold edged 0.1% lower to $1,273.70 per ounce at 0239 GMT. “A stronger dollar and Washington’s extension to Huawei for 3 months has put the knife into gold, ” OANDA analyst Jeffrey Halley said. Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fun


Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion ahead of the minutes from U.S. Federal Reserve’s latest meeting. Spot gold edged 0.1% lower to $1,273.70 per ounce at 0239 GMT. “A stronger dollar and Washington’s extension to Huawei for 3 months has put the knife into gold, ” OANDA analyst Jeffrey Halley said. Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fun
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Company: cnbc, Activity: cnbc, Date: 2019-05-22
Keywords: news, cnbc, companies, dollar, low, ounce, ahead, stronger, united, strong, twoweek, hovers, gold, trade, edged, steady, fed, near, minutes, huawei, unchanged


Gold hovers near two-week low on strong dollar ahead of Fed minutes

Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion ahead of the minutes from U.S. Federal Reserve’s latest meeting.

Spot gold edged 0.1% lower to $1,273.70 per ounce at 0239 GMT. In the previous session, the metal fell to $1,268.97, its lowest since May 3.

U.S. gold futures were unchanged at $1,273.30 an ounce.

The dollar hovered near a four-week high supported by higher U.S. yields, which rose overnight after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies.

“A stronger dollar and Washington’s extension to Huawei for 3 months has put the knife into gold, ” OANDA analyst Jeffrey Halley said.

On Monday, the U.S. Department of Commerce granted Huawei a license to buy U.S. goods until Aug. 19, a move intended to give telecom operators that rely on Huawei enough time to make alternative arrangements.

“The market has been tipping it as an easing of trade friction, so we have seen a rotation out of safe harbour trade, albeit temporarily,” Halley added.

Chinese Ambassador to the United States Cui Tiankai said on Tuesday that Beijing was ready to resume talks with Washington, but blamed the latter for frequently “changing its mind” on tentative deals.

Gold is now more than 5% below its late-February 2019 peak of $1,346.73 per ounce.

Meanwhile, investors await the release of U.S. Federal Reserve’s minutes at 1800 GMT, which is expected to provide insights into the May 1 meeting by the central bank, when policymakers kept interest rates steady and signaled little appetite to adjust them any time soon.

On Monday, Fed Chair Jerome Powell reiterated his unmoved demeanor stating it was premature to ascertain the impact of trade and tariffs on monetary policy.

“Despite the volatile environment, investors perhaps still believe that the equity market provides better capital gains due to the Fed’s actions, and are playing down the need for a hedge,” Howie Lee, an economist at OCBC Bank, said.

Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.4% to 739.69 tonnes on Tuesday.

However, holdings fell nearly 7% so far this year, indicating a subdued investor interest in bullion.

Among other precious metals, silver was steady at $14.44 per ounce.

Platinum was unchanged at $813.80 per ounce, while palladium edged up 0.1% to $1,320.50 per ounce.


Company: cnbc, Activity: cnbc, Date: 2019-05-22
Keywords: news, cnbc, companies, dollar, low, ounce, ahead, stronger, united, strong, twoweek, hovers, gold, trade, edged, steady, fed, near, minutes, huawei, unchanged


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Potential Fed nominee Judy Shelton wants a change in the way interest rates are set

Potential Federal Reserve nominee Judy Shelton thinks the central bank ought to pay more attention to financial markets when setting interest rates. Already an economic advisor to President Donald Trump, Shelton has been mentioned frequently as a possible candidate for a Fed governor position. If she did get the nomination and was confirmed, Shelton said she’d bring a different perspective when it comes to how rates are set.


Potential Federal Reserve nominee Judy Shelton thinks the central bank ought to pay more attention to financial markets when setting interest rates. Already an economic advisor to President Donald Trump, Shelton has been mentioned frequently as a possible candidate for a Fed governor position. If she did get the nomination and was confirmed, Shelton said she’d bring a different perspective when it comes to how rates are set.
Potential Fed nominee Judy Shelton wants a change in the way interest rates are set Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: jeff cox
Keywords: news, cnbc, companies, potential, shed, nominee, ratesalready, shelton, setting, president, fed, trump, set, wants, way, judy, reserve, rates, thinks, interest


Potential Fed nominee Judy Shelton wants a change in the way interest rates are set

Potential Federal Reserve nominee Judy Shelton thinks the central bank ought to pay more attention to financial markets when setting interest rates.

Already an economic advisor to President Donald Trump, Shelton has been mentioned frequently as a possible candidate for a Fed governor position. If she did get the nomination and was confirmed, Shelton said she’d bring a different perspective when it comes to how rates are set.


Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: jeff cox
Keywords: news, cnbc, companies, potential, shed, nominee, ratesalready, shelton, setting, president, fed, trump, set, wants, way, judy, reserve, rates, thinks, interest


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Gold steadies as equities dip; focus turns to Fed minutes

Spot gold inched up 0.1% to $1,278.41 per ounc, having touched its lowest since May 3 at $1,273.22. “With equities trading lower, gold is expected to trade a little higher going into the Fed minutes on expectations that there is no immediate rate increase coming for the rest of the year,” said Bob Haberkorn, senior market strategist at RJO Futures. Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion. “We have equitie


Spot gold inched up 0.1% to $1,278.41 per ounc, having touched its lowest since May 3 at $1,273.22. “With equities trading lower, gold is expected to trade a little higher going into the Fed minutes on expectations that there is no immediate rate increase coming for the rest of the year,” said Bob Haberkorn, senior market strategist at RJO Futures. Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion. “We have equitie
Gold steadies as equities dip; focus turns to Fed minutes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-20
Keywords: news, cnbc, companies, dollar, ounce, steadies, focus, equities, trade, twoweek, touched, gold, dip, trading, turns, fed, minutes, rates, lower


Gold steadies as equities dip; focus turns to Fed minutes

An amphora filled with ancient gold Roman coins found in the Cressoni theatre complex is seen in Como Italy, September 5, 2018.

Gold steadied on Monday after recovering slightly from a more than two-week low hit earlier in the session, as equity markets fell ahead of the U.S. Federal Reserve’s release of minutes from its last meeting.

Spot gold inched up 0.1% to $1,278.41 per ounc, having touched its lowest since May 3 at $1,273.22.

U.S. gold futures settled $1.50 higher at $1,282.90.

“With equities trading lower, gold is expected to trade a little higher going into the Fed minutes on expectations that there is no immediate rate increase coming for the rest of the year,” said Bob Haberkorn, senior market strategist at RJO Futures.

Investors shifted focus to the Fed minutes due on Wednesday, which is expected to provide insights into the May 1 central bank meeting in which policymakers decided to keep interest rates steady and signaled little appetite to adjust them any time soon.

Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

Global stocks took a hit as concerns mounted about an escalating fallout from a U.S. crackdown on China’s Huawei Technologies Co Ltd, intensifying a prolonged trade war between the world’s two biggest economics.

The greenback limited bullion’s appeal as the dollar index held near a two-week high. Last week the index posted the biggest weekly rise since early March, supported by robust U.S. housing data and a report pointing to lower unemployment.

“We have equities trading lower with all the geo-political news out there, yet gold can’t sustain any rally. There seems to be a flight to safety into the dollar because of the better economic data coming out of the U.S.,” Haberkorn said.

While gold is a safe store of value during times of uncertainty, investors are preferring the dollar, as they did last year during the U.S.-China trade spat.

Iran was served a new warning by U.S. President Donald Trump, who tweeted that if the country wanted to fight, that would be Iran’s “official end.”

On the technical side, “$1,265 is now a critical support that must hold. A daily close below that region implies a much deeper correction could be imminent,” OANDA analyst Jeffrey Halley said in a note.

Among other metals, silver was up 0.5% at $14.47 an ounce, having touched a more than five-month low at $14.33.

Platinum edged 0.1% lower at $812.40 per ounce, while palladium rose 1.5% to $1,329.90.


Company: cnbc, Activity: cnbc, Date: 2019-05-20
Keywords: news, cnbc, companies, dollar, ounce, steadies, focus, equities, trade, twoweek, touched, gold, dip, trading, turns, fed, minutes, rates, lower


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Fed speakers could steal focus from trade war in week ahead

A flurry of Fed speakers and any new trade developments could shake up what normally might be a slow week of trading ahead of the three-day Memorial Day holiday weekend. Stocks ended the past week with losses, as trade-related headlines caused big swings in the market. The Dow ended the week with a 0.7% loss to 25,764 in its fourth negative week. The Nasdaq lost even more, 1.2% for the week, after U.S. action against China’s Huawei depressed U.S. tech names that do business in China. The U.S. ra


A flurry of Fed speakers and any new trade developments could shake up what normally might be a slow week of trading ahead of the three-day Memorial Day holiday weekend. Stocks ended the past week with losses, as trade-related headlines caused big swings in the market. The Dow ended the week with a 0.7% loss to 25,764 in its fourth negative week. The Nasdaq lost even more, 1.2% for the week, after U.S. action against China’s Huawei depressed U.S. tech names that do business in China. The U.S. ra
Fed speakers could steal focus from trade war in week ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: patti domm
Keywords: news, cnbc, companies, billion, raised, ended, speakers, huawei, losses, china, fed, trade, focus, 25, steal, tariffs, week, ahead, war


Fed speakers could steal focus from trade war in week ahead

A flurry of Fed speakers and any new trade developments could shake up what normally might be a slow week of trading ahead of the three-day Memorial Day holiday weekend.

Stocks ended the past week with losses, as trade-related headlines caused big swings in the market. The Dow ended the week with a 0.7% loss to 25,764 in its fourth negative week. The S&P 500 fell for a second week, losing 0.8% to 2,859. The Nasdaq lost even more, 1.2% for the week, after U.S. action against China’s Huawei depressed U.S. tech names that do business in China.

Friday ended with losses in the final hour, after CNBC’s Kayla Tausche reported that talks between the U.S. and China appear to have stalled, and there have been no discussions on scheduling a new round.

“With the trade stuff, this is brass knuckles time. When you institute tariffs…when you go to 25% like we just did, all of a sudden there’s no room for error,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “The stakes are so much greater at 25%, and if we did the other $300 billion dollars, then we start damaging the consumer and you can guarantee a global recession.”

The U.S. raised tariffs last week from 10% to 25% on $200 billion in goods, and China responded by raising tariffs on $60 billion in goods.

Boockvar, like others, had been looking for a trade deal earlier in the month, but there has been no sign of positive movements, and the crackdown on Huawei raised concerns about China retaliating against U.S. companies.

“China is not bending and with Trump taunting them, they’re pissed. It still remains the case that everyone wants a deal , It’s in everyone’s best interest. It’s tough to negotiate when you get hit in the head with a baseball bat,” said Boockvar.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: patti domm
Keywords: news, cnbc, companies, billion, raised, ended, speakers, huawei, losses, china, fed, trade, focus, 25, steal, tariffs, week, ahead, war


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Dow set to drop 200 points at the open as trade tensions linger

Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment. ET, Dow Jones Industrial Average futures indicated a drop of 200 points at the open. The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products. Jeremy Corbyn, the Labour Party leader, told Prime Minister Theresa May that talks had “gone as far as they can go. ” ET, Federal


Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment. ET, Dow Jones Industrial Average futures indicated a drop of 200 points at the open. The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products. Jeremy Corbyn, the Labour Party leader, told Prime Minister Theresa May that talks had “gone as far as they can go. ” ET, Federal
Dow set to drop 200 points at the open as trade tensions linger Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: fred imbert spriha srivastava, fred imbert, spriha srivastava, arjun kharpal
Keywords: news, cnbc, companies, fed, trade, linger, york, worth, talks, points, open, fell, dow, futures, drop, 200, et, set, china, week, tensions


Dow set to drop 200 points at the open as trade tensions linger

Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment.

At 8:06 a.m. ET, Dow Jones Industrial Average futures indicated a drop of 200 points at the open. Futures for the S&P 500 and Nasdaq 100 also fell.

Chinese Commerce Ministry spokesman Gao Feng said Thursday, according to state-run news agency Xinhua, that the U.S. is exhibiting “bullying behavior” with its latest moves on the trade front, noting it is “regrettable that the U.S. side unilaterally escalated trade disputes, which resulted in severe negotiating setbacks.”

The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products. The moves led to a massive sell-off to start off the week. But the major indexes have clawed back most of their losses through Thursday’s close.

President Donald Trump’s administration then moved to make it harder for U.S. companies to do business with Huawei, a giant telecommunications company in China. Shares of U.S. suppliers like Qualcomm, Qorvo and Micron Technology fell 1.9%, 1.6% and 1.4%, respectively.

Chinese stocks fell sharply overnight. The Shanghai Composite dropped 2.5% and posted its longest weekly losing streak since July 2018.

Investors also fretted over a breakdown in Brexit talks. The U.K.’s two largest political parties failed to strike a deal on the country’s exit from the European Union after six weeks of talks. Jeremy Corbyn, the Labour Party leader, told Prime Minister Theresa May that talks had “gone as far as they can go. ” Sterling fell 0.4% to $1.2751.

Stocks posted solid gains on Thursday, largely driven by strong earnings from Walmart and Cisco Systems, as the major indexes notched their third consecutive gain.

On the data front Friday, consumer sentiment numbers are due at 10 a.m. ET. Meanwhile, Deere is set to report its earnings before the bell.

A number of Fed speeches are also scheduled for Friday. At 10 a.m. ET, Federal Reserve Vice Chair Richard Clarida will be speaking on the Fed’s review of its monetary policy strategy, followed by New York Fed President John Williams’ speech in New York at 11:15 a.m. ET, and Dallas Fed President Robert Kaplan’s speech at 1:10 p.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: fred imbert spriha srivastava, fred imbert, spriha srivastava, arjun kharpal
Keywords: news, cnbc, companies, fed, trade, linger, york, worth, talks, points, open, fell, dow, futures, drop, 200, et, set, china, week, tensions


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Fed’s Neel Kashkari says rate hikes ‘were not called for’ and that policy has been ‘too tight’

In an unusually harsh rebuke of central bank actions, Kashkari said the central bank shouldn’t have tightened monetary policy with inflation so low. “In my view, these rate increases were not called for by our symmetric framework,” Kashkari said during a speech in Santa Barbara, California. He based his position on a job market that is still growing even though wage gains are still tame, and inflation is averaging around 1.6%. Even with the low rate, another gauge that includes discouraged worke


In an unusually harsh rebuke of central bank actions, Kashkari said the central bank shouldn’t have tightened monetary policy with inflation so low. “In my view, these rate increases were not called for by our symmetric framework,” Kashkari said during a speech in Santa Barbara, California. He based his position on a job market that is still growing even though wage gains are still tame, and inflation is averaging around 1.6%. Even with the low rate, another gauge that includes discouraged worke
Fed’s Neel Kashkari says rate hikes ‘were not called for’ and that policy has been ‘too tight’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: jeff cox
Keywords: news, cnbc, companies, inflation, hikes, feds, policy, rates, neel, low, market, job, tight, fed, kashkari, rate, called, target


Fed's Neel Kashkari says rate hikes 'were not called for' and that policy has been 'too tight'

The Federal Reserve erred by raising interest rates during the recovery, part of a policy implementation that misread key signals and threatened to send the economy into recession, Minneapolis Fed President Neel Kashkari said Thursday.

In an unusually harsh rebuke of central bank actions, Kashkari said the central bank shouldn’t have tightened monetary policy with inflation so low. Instead, he said, the policymaking Federal Open Market Committee should be signaling that it will allow inflation to run higher than the 2% target, a move that would send a clear signal that the Fed is serious about stimulating the economy.

The FOMC hiked rates nine times starting in December 2015 as part of an effort to normalize policy following the extreme accommodations made during and after the financial crisis and Great Recession. Those hikes came even as inflation stayed well below the Fed’s goal.

“In my view, these rate increases were not called for by our symmetric framework,” Kashkari said during a speech in Santa Barbara, California.

The remarks came as part of a review the Fed is doing of its framework and the approach it has taken to jolting the economy back to life.

They also jibe closely with sentiments from the White House. President Donald Trump has repeatedly criticized the rate hikes and has said the economy would be much stronger had the Fed backed off.

While acknowledging the aggressive measures the central bank took — bringing its target rate down to near-zero and implementing three rounds of asset purchases that took its balance sheet to $4.5 trillion — Kashkari said the Fed should have kept its foot on the pedal.

He based his position on a job market that is still growing even though wage gains are still tame, and inflation is averaging around 1.6%.

“With inflation somewhat too low and the job market still showing capacity after 10 years, the only reasonable conclusion I can draw is that monetary policy has been too tight in this recovery,” he said.

Kashkari said one of the main problems was that Fed officials didn’t see how low unemployment could go without generating inflation. The current unemployment rate is at 3.6%, the lowest reading in nearly 50 years.

“I believe that we misread the labor market, thinking we were at maximum employment when, in fact, millions of Americans still wanted to work, and fearing that if we hit maximum employment, inflation might suddenly accelerate, and we would then have to raise rates quickly to contain it,” he said.

“The headline unemployment rate has been giving a faulty signal,” he added.

Even with the low rate, another gauge that includes discouraged worker and those holding part-time positions for economic reasons remains at 7.3%, reflective of slack remaining in the job market.

Kashkari said the lesson from the tightening cycle is that the Fed probably will want to be even more aggressive with policy in the next downturn. Evidence of tightening too fast came in the fourth quarter of 2018, when markets feared the Fed would continue raising rates and reducing its balance sheet and sold off aggressively.

“Perhaps we’d have achieved maximum employment already if monetary policy had been more accommodative,’ he said, adding that “by raising rates more quickly than called for by our symmetric framework, we ran the risk of overtightening and causing a recession. Markets signaled this risk with the steep drop in bond yields and equity prices late last year. The FOMC’s quick adjustment to pause further rate hikes was appropriate and, thankfully, seems to have mitigated this risk for now.”

However, he said he fears what may happen next time if the Fed doesn’t do a better job of listening to economic and market signals.

“For our current framework to be effective and credible, we must walk the walk and actually allow inflation to climb modestly above 2 percent in order to demonstrate that we are serious about symmetry,” Kashkari said. “Make-up strategies such as price-level targets offer this attractive feature. But we must honestly ask ourselves: If we felt compelled to raise rates when inflation was below target in this recovery, would we really keep rates low when inflation is above target next time? Count me as skeptical.”


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: jeff cox
Keywords: news, cnbc, companies, inflation, hikes, feds, policy, rates, neel, low, market, job, tight, fed, kashkari, rate, called, target


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Trump says if Fed cuts interest rates, US will win trade war: ‘It would be game over, we win!’

President Donald Trump predicted Tuesday that China’s next move in the trade war will be a rate cut, and he pushed the Federal Reserve to follow suit in what he said would lead to a clear victory for the U.S. He said that should the central bank meet a China rate cut with one of its own, that would be “game over, we win!” The White House and Beijing have hit an impasse in their ongoing trade negotiations. Washington is looking for a lowering of barriers into China and for the nation to halt the


President Donald Trump predicted Tuesday that China’s next move in the trade war will be a rate cut, and he pushed the Federal Reserve to follow suit in what he said would lead to a clear victory for the U.S. He said that should the central bank meet a China rate cut with one of its own, that would be “game over, we win!” The White House and Beijing have hit an impasse in their ongoing trade negotiations. Washington is looking for a lowering of barriers into China and for the nation to halt the
Trump says if Fed cuts interest rates, US will win trade war: ‘It would be game over, we win!’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: jeff cox
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Trump says if Fed cuts interest rates, US will win trade war: 'It would be game over, we win!'

President Donald Trump predicted Tuesday that China’s next move in the trade war will be a rate cut, and he pushed the Federal Reserve to follow suit in what he said would lead to a clear victory for the U.S.

In a tweet that amounted to the latest salvo in the tariff dispute between the two nations, the president ramped up his pressure on the Fed to ease monetary policy.

He said that should the central bank meet a China rate cut with one of its own, that would be “game over, we win!”

The White House and Beijing have hit an impasse in their ongoing trade negotiations. Washington is looking for a lowering of barriers into China and for the nation to halt the theft of intellectual property. As recent talks stalled, China retaliated against Trump’s latest round of tariffs, announcing plans Monday to slap new levies on $60 billion worth of American goods.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: jeff cox
Keywords: news, cnbc, companies, war, worth, winthe, trump, latest, cut, rates, fed, rate, trade, interest, china, cuts, president, white, game, washington, win


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Vice President Pence says the Fed should cut interest rates, reconsider its dual mandate policy

Vice President Mike Pence believes the Federal Reserve should look to cut its benchmark interest rate due to the continued growth of the U.S. economy. “I think it might be time for us to consider lowering interest rates,” Pence told CNBC’s Eamon Javers on Friday. Pence, economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin have all previously backed Trump’s call to lower interest rates. “I think the president is very interested in bringing fresh ideas to the Federal Reserve board,”


Vice President Mike Pence believes the Federal Reserve should look to cut its benchmark interest rate due to the continued growth of the U.S. economy. “I think it might be time for us to consider lowering interest rates,” Pence told CNBC’s Eamon Javers on Friday. Pence, economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin have all previously backed Trump’s call to lower interest rates. “I think the president is very interested in bringing fresh ideas to the Federal Reserve board,”
Vice President Pence says the Fed should cut interest rates, reconsider its dual mandate policy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: michael sheetz
Keywords: news, cnbc, companies, inflation, mandate, federal, reconsider, vice, trumps, fed, rates, policy, reserve, pence, dual, looking, consider, president, interest


Vice President Pence says the Fed should cut interest rates, reconsider its dual mandate policy

Vice President Mike Pence believes the Federal Reserve should look to cut its benchmark interest rate due to the continued growth of the U.S. economy.

“I think it might be time for us to consider lowering interest rates,” Pence told CNBC’s Eamon Javers on Friday. “We just don’t see any inflation in this economy at all.”

Pence’s comments fall squarely in line with the rest of President Donald Trump’s confidantes at the White House. Pence, economic adviser Larry Kudlow and Treasury Secretary Steven Mnuchin have all previously backed Trump’s call to lower interest rates.

He also raised the idea that the Fed perhaps should focus on a single mandate, maximizing employment, to make monetary policy, instead of the dual mandate that also includes low inflation. Pence added that a single mandate is not something he and Trump have talked about.

“Back when I was in Congress we had a whole debate about the dual mandate of the Federal Reserve and it might be time for us to consider that again,” Pence said. “By just looking at inflation you make clear … this is exactly the time, not only to not raise interest rates, but we ought to consider cutting.”

Trump is also looking to fill two vacant seats on the Federal Reserve board. But so far the nominees Trump has seriously considered have withdrawn. Conservative pundit Stephen Moore was the latest to step back from Fed consideration on Thursday, following the same path as Herman Cain, who withdrew last month.

“I think the president is very interested in bringing fresh ideas to the Federal Reserve board,” Pence said. “What the president’s really looking for is people that understand the dynamic approach to this economy that he’s been putting into practice.”

Pence added that the president is looking for nominees “who are as fiercely committed to the free market as he is.”

“We’re seeing jobs being created all over the country … [and that] should be an encouragement to every American and also to people that operate our monetary policies,” Pence said.


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: michael sheetz
Keywords: news, cnbc, companies, inflation, mandate, federal, reconsider, vice, trumps, fed, rates, policy, reserve, pence, dual, looking, consider, president, interest


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Economist John Taylor thinks the Fed is ‘in a better place’ with interest rates

Buffett says no textbook could have predicted the strange economy… This economic environment is one that no one could have seen coming given the current fiscal and monetary conditions, Warren Buffett says. Economyread more


Buffett says no textbook could have predicted the strange economy… This economic environment is one that no one could have seen coming given the current fiscal and monetary conditions, Warren Buffett says. Economyread more
Economist John Taylor thinks the Fed is ‘in a better place’ with interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: jeff cox
Keywords: news, cnbc, companies, textbook, predicted, sayseconomyread, place, given, fiscal, warren, thinks, rates, fed, economist, seen, monetary, strange, better, taylor, interest, buffett, john


Economist John Taylor thinks the Fed is 'in a better place' with interest rates

Buffett says no textbook could have predicted the strange economy…

This economic environment is one that no one could have seen coming given the current fiscal and monetary conditions, Warren Buffett says.

Economy

read more


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: jeff cox
Keywords: news, cnbc, companies, textbook, predicted, sayseconomyread, place, given, fiscal, warren, thinks, rates, fed, economist, seen, monetary, strange, better, taylor, interest, buffett, john


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