Wells Fargo cuts rate hike forecast, bond yield targets

This month, the firm cut both its year-end Federal Reserve interest rate hike forecast and bond yield targets. However, the firm’s global head of interest rate strategy said the decision has little to do with an economic slowdown abroad. When the 2-year and 10-year Treasury yield invert, it historically points to impending economic troubles. Along with the Fed rate forecast change, Schumacher and his team lowered its year-end treasury yield targets. The expectation is now for the 2-Year Treasury


This month, the firm cut both its year-end Federal Reserve interest rate hike forecast and bond yield targets. However, the firm’s global head of interest rate strategy said the decision has little to do with an economic slowdown abroad. When the 2-year and 10-year Treasury yield invert, it historically points to impending economic troubles. Along with the Fed rate forecast change, Schumacher and his team lowered its year-end treasury yield targets. The expectation is now for the 2-Year Treasury
Wells Fargo cuts rate hike forecast, bond yield targets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: stephanie landsman, brendan mcdermid, bukharova, getty images, artur widak, nurphoto, david a grogan
Keywords: news, cnbc, companies, schumacher, does, fargo, wells, hike, forecast, treasury, yearend, fed, rate, invert, cuts, interest, targets, bond, yield


Wells Fargo cuts rate hike forecast, bond yield targets

As bond yields fall on global growth fears, Wells Fargo is making some changes.

This month, the firm cut both its year-end Federal Reserve interest rate hike forecast and bond yield targets. However, the firm’s global head of interest rate strategy said the decision has little to do with an economic slowdown abroad.

“It boils down to the Fed,” Michael Schumacher said Thursday on CNBC’s “Futures Now.” “What does the Fed care about most? Does it care about European growth? Probably not a huge amount.”

Based on recent Fed commentary and Chairman Jerome Powell’s more dovish comments about the economy over the past few months, Schumacher said a readjustment of the firm’s expectations was necessary.

“It’s pretty difficult to call for the Fed to hike two or three times. We were at two. We debated quite a bit,” he said. “We can’t really allow for two. So, we’ll go with one rate hike for now for 2019.”

Schumacher, however, does not believe the move will create an ominous treasury yield inversion. When the 2-year and 10-year Treasury yield invert, it historically points to impending economic troubles.

“If there’s one more hike, would it cause the curve to invert? We doubt it,” he said. “The central banks have such massive portfolios. They’ve distorted those market rates. So even if the curve inverts, we think a recession is unlikely.”

He expected the sole hike of the year would come in the beginning of third quarter — which would likely be the last of the cycle. It’s in line with the results from CNBC’s latest Fed Survey which indicates the Wall Street is also predicting one rate hike.

Along with the Fed rate forecast change, Schumacher and his team lowered its year-end treasury yield targets.

The expectation is now for the 2-Year Treasury yield to end the year at 2.75% from 2.95% while the 10-Year Treasury yield dipped to 3.10 percent from 3.30 percent.

On Friday, they hit their lowest levels since February 1.


Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: stephanie landsman, brendan mcdermid, bukharova, getty images, artur widak, nurphoto, david a grogan
Keywords: news, cnbc, companies, schumacher, does, fargo, wells, hike, forecast, treasury, yearend, fed, rate, invert, cuts, interest, targets, bond, yield


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The Fed’s next rate move is more likely a cut than a hike: Economist Mohamed El-Erian

The Federal Reserve is likely to hold interest rates steady for the entire year after hiking four times in 2018, predicted economist Mohamed El-Erian. In December, the Fed projected two rate increases this year. El-Erian said that Fed chiefs meeting with presidents is normal and has happened plenty of times before. Meanwhile, El-Erian gives Powell a grade of “A,” saying anyone would have had troubling navigating the current economic and market conditions. El-Erian said Powell’s proclamation afte


The Federal Reserve is likely to hold interest rates steady for the entire year after hiking four times in 2018, predicted economist Mohamed El-Erian. In December, the Fed projected two rate increases this year. El-Erian said that Fed chiefs meeting with presidents is normal and has happened plenty of times before. Meanwhile, El-Erian gives Powell a grade of “A,” saying anyone would have had troubling navigating the current economic and market conditions. El-Erian said Powell’s proclamation afte
The Fed’s next rate move is more likely a cut than a hike: Economist Mohamed El-Erian Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-05  Authors: matthew j belvedere, cameron costa
Keywords: news, cnbc, companies, yellen, rate, powells, mohamed, likely, powell, market, cut, happened, economist, feds, meeting, elerian, central, hike, fed


The Fed's next rate move is more likely a cut than a hike: Economist Mohamed El-Erian

The Federal Reserve is likely to hold interest rates steady for the entire year after hiking four times in 2018, predicted economist Mohamed El-Erian.

The chief economic advisor at Allianz and former Pimco chief told CNBC on Tuesday that he sees a 50 to 55 percent chance of the next Fed move being a cut that would happen sometime in 2020. In December, the Fed projected two rate increases this year. But few in the market still expect that path.

And another tool to tighten-up monetary policy, the unwinding of the Fed’s balance sheet, or portfolio of assets, “certainly will go off autopilot” in 2019, El-Erian said on “Squawk Box.”

The central bank is aiming to reduce its more than $4 trillion worth of bond holdings by up to $600 billion this year by not replacing maturing assets.

El-Erian thinks that balance sheet plan will be changed. “It will alter both the notion of the destination and the pace.” He refused to the put numbers on the destination, saying its data dependent.

On the matter of Fed Chairman Jerome Powell having dinner Monday evening with President Donald Trump, El-Erian said, “It was really important that this happened this week, and not last week” before the central bank’s January policy meeting. “Had it happened before the pivot, we would be having a completely different conversation,” he added.

El-Erian said that Fed chiefs meeting with presidents is normal and has happened plenty of times before. For example, Trump met with Powell’s predecessor, Janet Yellen, in October 2017. When Barack Obama was in the White House, he met with Yellen in April 2016 and November 2014.

Trump, who nominated Powell to be Fed chairman, has been one of Powell’s biggest and most vocal critics, blaming central bank rate increases for slowing the economy and roiling the stock market.

“I always feel it’s important for two sides to hear each other and it reduces, but it doesn’t eliminate, but reduces misunderstandings in the future,” El-Erian. “I think net-net this is neutral to slightly favorable to the market. But it’s not a big deal.”

Meanwhile, El-Erian gives Powell a grade of “A,” saying anyone would have had troubling navigating the current economic and market conditions. Though he did call Powell’s early October signal of four rate hikes for 2019 a mistake.

Powell did walk back those comments but the stock market plunged in the final three months of the year, hitting a closing low on Christmas Eve and touching a bear market decline of more than 20 percent from its record highs. Wall Street has staged a recovery since then, with January posting the best month of gains in stocks since October 2015.

El-Erian said Powell’s proclamation after last week’s Fed meeting of patience before any more rate moves reinforced the case to buy stocks — “expected return goes up, expected volatility goes down.”

“It played on expectations that liquidity would be accommodated, if needed. And therefore, you can be more comfortable going back to the old view … look at dips as perhaps buying opportunities,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-02-05  Authors: matthew j belvedere, cameron costa
Keywords: news, cnbc, companies, yellen, rate, powells, mohamed, likely, powell, market, cut, happened, economist, feds, meeting, elerian, central, hike, fed


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Fed’s Kashkari: Rate hike pause keeps US growth on track

Last week, the Fed discarded a promise to keep raising rates, and instead pledged patience on further policy change. The dovish shift was cheered by financial markets, but sounded to some analysts like a warning of economic weakness ahead. The Fed has been raising rates since December 2015, including four times last year, to a current range of 2.25 percent to 2.5 percent. It is a view Kashkari has staked out repeatedly over the past couple of years, but only recently has it been adopted by his p


Last week, the Fed discarded a promise to keep raising rates, and instead pledged patience on further policy change. The dovish shift was cheered by financial markets, but sounded to some analysts like a warning of economic weakness ahead. The Fed has been raising rates since December 2015, including four times last year, to a current range of 2.25 percent to 2.5 percent. It is a view Kashkari has staked out repeatedly over the past couple of years, but only recently has it been adopted by his p
Fed’s Kashkari: Rate hike pause keeps US growth on track Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: chris goodney, bloomberg, getty images
Keywords: news, cnbc, companies, growth, keeps, lets, view, raising, rates, pause, including, kashkari, tap, track, fed, hike, rate, past, feds, signs


Fed's Kashkari: Rate hike pause keeps US growth on track

Last week, the Fed discarded a promise to keep raising rates, and instead pledged patience on further policy change. The dovish shift was cheered by financial markets, but sounded to some analysts like a warning of economic weakness ahead.

The decision also appeared to deliver President Donald Trump what he had been demanding in tweets and interviews for the past several months – a stop to what he termed the Fed’s “crazy” round of interest rate hikes that in his view were undercutting the growth he has sought to foster.

The Fed has been raising rates since December 2015, including four times last year, to a current range of 2.25 percent to 2.5 percent.

Kashkari’s comments put a positive spin on last week’s decision.

“I think there are more people out there who want to work; let’s let the economy continue to strengthen and if we see signs then, wages pick up, inflation picks up, we can always tap the brakes then; let’s just not tap the brakes prematurely,” Kashkari said.

It is a view Kashkari has staked out repeatedly over the past couple of years, but only recently has it been adopted by his policy-setting colleagues.

There are some risks, including slowing growth in China and confusion surrounding Britain’s exit from the European Union, he said. Optimism fueled early last year by Trump’s hefty tax cuts has eroded amid mounting concern over trade tariffs, Kashkari said, keeping some businesses from making investments.

Still, he said, the U.S. economic outlook was strong. As long as there are no signs the economy is overheating, he said, the Fed should not risk pushing short-term rates above long-term ones, creating a so-called inverted yield curve that would herald a recession.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: chris goodney, bloomberg, getty images
Keywords: news, cnbc, companies, growth, keeps, lets, view, raising, rates, pause, including, kashkari, tap, track, fed, hike, rate, past, feds, signs


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Goldman Sachs chief economist bucks the market and still expects one Fed rate hike in 2019

Goldman Sachs Chief Economist Jan Hatzius is expecting the Federal Reserve to hike interest rates at least once this year, despite the prevailing market view for zero or even a rate cut. For now, the Fed is “clearly on hold,” Hatzius said Friday in a “Squawk on the Street” interview. After the fourth Fed rate hike of 2018 in December, Chairman Jerome Powell did leave the door open to other options in 2019, emphasizing “data dependency.” With all of January in the books, the Dow rose about 7 perc


Goldman Sachs Chief Economist Jan Hatzius is expecting the Federal Reserve to hike interest rates at least once this year, despite the prevailing market view for zero or even a rate cut. For now, the Fed is “clearly on hold,” Hatzius said Friday in a “Squawk on the Street” interview. After the fourth Fed rate hike of 2018 in December, Chairman Jerome Powell did leave the door open to other options in 2019, emphasizing “data dependency.” With all of January in the books, the Dow rose about 7 perc
Goldman Sachs chief economist bucks the market and still expects one Fed rate hike in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, hatzius, chief, sachs, economist, rate, bucks, expects, dow, powell, policy, hold, market, rates, hike, rose, fed, goldman


Goldman Sachs chief economist bucks the market and still expects one Fed rate hike in 2019

Goldman Sachs Chief Economist Jan Hatzius is expecting the Federal Reserve to hike interest rates at least once this year, despite the prevailing market view for zero or even a rate cut.

For now, the Fed is “clearly on hold,” Hatzius said Friday in a “Squawk on the Street” interview. However, he added, “The economy is still doing pretty well. We’re still growing above trend, [but] not as much as we were in the middle of last year.”

The Fed opted not to raise rates from a range between 2.25 percent and 2.5 percent during its policy meeting this week, and pledged that future moves would be approached patiently. After the fourth Fed rate hike of 2018 in December, Chairman Jerome Powell did leave the door open to other options in 2019, emphasizing “data dependency.” However, at the time, the Fed projected two more rate increases this year.

In reaction, stocks surged Wednesday, with the Dow Jones Industrial Average closing above 25,000 for the first time since Dec. 4. The Dow closed just below the flat-line Thursday but rose Friday on a better-than-expected jobs report for the month of January.

With all of January in the books, the Dow rose about 7 percent, its best monthly performances since October 2015. However, after the rout in the final three months of 2018, the Dow was still 7 percent below its all-time intraday highs in early October before Powell touched off concerns about an aggressive rate-hike policy. He later walked back that notion. But uncertainty persisted.

Now, there is a growing chorus, including Art Cashin of UBS and Guggenheim’s Scott Minerd, saying the Fed “is done raising rates and maybe will even cut rates” in 2019.

With the latest Fed comments, markets have definitely taken their rate hike estimates down, Hatzius said. “We no longer look for quarterly hikes. We still think one hike in 2019 but it’s a very different outlook at this point”

Former Atlanta Fed President Dennis Lockhart also expects the Fed to hike at least once this year. He told CNBC on Thursday, central bankers will likely be on hold until midyear before they’ll have to re-evaluate inflation data and decide whether to hike.


Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: berkeley lovelace jr
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Bernie Sanders proposes a big hike in the estate tax, including a 77% rate for over $1 billion

Sanders’ plan would restore the estate tax rate to levels not seen since the 1970s. Mitch McConnell, Chuck Grassley and John Thune introduced a plan to repeal the estate tax, calling it an “unfair death tax.” “Incredibly, Republican leaders in the Senate have introduced a bill to repeal the estate tax for the richest 1,700 families in America. A spokesman for Sanders’ Senate office did not immediately respond to CNBC’s request for comment. Freshman Rep. Alexandria Ocasio-Cortez of New York has f


Sanders’ plan would restore the estate tax rate to levels not seen since the 1970s. Mitch McConnell, Chuck Grassley and John Thune introduced a plan to repeal the estate tax, calling it an “unfair death tax.” “Incredibly, Republican leaders in the Senate have introduced a bill to repeal the estate tax for the richest 1,700 families in America. A spokesman for Sanders’ Senate office did not immediately respond to CNBC’s request for comment. Freshman Rep. Alexandria Ocasio-Cortez of New York has f
Bernie Sanders proposes a big hike in the estate tax, including a 77% rate for over $1 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-31  Authors: carmin chappell, bill pugliano getty images
Keywords: news, cnbc, companies, hike, republican, including, estate, plan, million, senate, bernie, tax, sanders, billion, raise, introduced, democrats, proposes, rate, big


Bernie Sanders proposes a big hike in the estate tax, including a 77% rate for over $1 billion

Here’s what Rep. Ocasio-Cortez’s tax proposal would mean 11:06 AM ET Fri, 11 Jan 2019 | 01:18

The debate over tax policy is heating up, as Democrats looking to unseat President Donald Trump in 2020 try to use the GOP tax law against him. The measure, which slashed taxes for corporations and included individual tax cuts that favored the wealthy, largely did not resonate with voters in midterm congressional elections last year.

Recent polling shows that most Americans favor raising taxes on the rich.

Sanders’ proposed estate tax rates are:

$3.5 million to $10 million: 45 percent tax

$10 million to $50 million: 50 percent tax

$50 million to $1 billion: 55 percent tax

more than $1 billion: 77 percent tax

The Post, citing Sanders aides, said the plan would raise $2.2 trillion from 588 billionaires, although it is unclear how long it would take to raise the money. Over the next 10 years, however, Sanders staffers told the Post the levy would reap $315 billion.

Sanders’ plan would restore the estate tax rate to levels not seen since the 1970s. Earlier this week, Republican Sens. Mitch McConnell, Chuck Grassley and John Thune introduced a plan to repeal the estate tax, calling it an “unfair death tax.”

Sanders slammed his GOP colleagues’ proposal.

“Incredibly, Republican leaders in the Senate have introduced a bill to repeal the estate tax for the richest 1,700 families in America. That’s absurd,” he tweeted. “From a moral, economic and political perspective our nation will not thrive when so few have so much and so many have so little.”

A spokesman for Sanders’ Senate office did not immediately respond to CNBC’s request for comment.

The senator’s bill follows several other tax plans introduced by prominent Democrats in recent weeks.

Sen. Elizabeth Warren of Massachusetts, who has launched a presidential exploratory committee, proposed a 2 percent”wealth tax” on Americans with a net worth greater than $50 million. Freshman Rep. Alexandria Ocasio-Cortez of New York has floated a 70 percent marginal tax rate on income over $10 million. Both plans have received pushback from Republican lawmakers and Wall Street executives, as well as from former Starbucks CEO Howard Schultz, a one-time Democrat who is seriously exploring an independent run for the White House.

Sanders, an independent who caucuses with Democrats in the Senate, is considering a run for president in 2020, after coming in as the runner-up behind Hillary Clinton in the 2016 Democratic primary. Earlier this month, he introduced bills to raise the federal minimum wage from $7.25 to $15 an hour and lower the costs of prescription drugs.


Company: cnbc, Activity: cnbc, Date: 2019-01-31  Authors: carmin chappell, bill pugliano getty images
Keywords: news, cnbc, companies, hike, republican, including, estate, plan, million, senate, bernie, tax, sanders, billion, raise, introduced, democrats, proposes, rate, big


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Netflix price hike may spur growth in illegal password sharing

Netflix’s recent price hike might fuel growth among a different group of viewers: password borrowers. “Password sharing is something you have to learn to live with, because there’s so much legitimate password sharing, like you sharing with your spouse, with your kids …. so there’s no bright line, and we’re doing fine as is,” said Netflix co-founder and CEO Reed Hastings during Netflix’s third-quarter earnings webcast in 2016. Other content streaming services generally have similar language. Un


Netflix’s recent price hike might fuel growth among a different group of viewers: password borrowers. “Password sharing is something you have to learn to live with, because there’s so much legitimate password sharing, like you sharing with your spouse, with your kids …. so there’s no bright line, and we’re doing fine as is,” said Netflix co-founder and CEO Reed Hastings during Netflix’s third-quarter earnings webcast in 2016. Other content streaming services generally have similar language. Un
Netflix price hike may spur growth in illegal password sharing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-30  Authors: jessica bursztynsky, gabjones, bloomberg, getty images, tero vesalainen, ted soqui, corbis, -brett sappington, senior director of research at parks associates
Keywords: news, cnbc, companies, hike, price, theres, terms, growth, sharing, plan, share, spur, netflix, illegal, streaming, password, services, passwords


Netflix price hike may spur growth in illegal password sharing

Netflix’s recent price hike might fuel growth among a different group of viewers: password borrowers.

The streaming giant recently announced an upcoming price increase of 13 percent to 18 percent. The fee hike will raise the cost of the cheapest plan to $9, up from $8. The company’s HD standard plan will cost $13, up from $11. Finally, its 4K premium plan will rise to $16, up from $14.

Suddenly, borrowing sign-in credentials from friends and family seems like an attractive idea for the cost-conscious.

For what it’s worth, streaming platforms already know you’re sharing your passwords. And they’re not happy about it.

“Password sharing is something you have to learn to live with, because there’s so much legitimate password sharing, like you sharing with your spouse, with your kids …. so there’s no bright line, and we’re doing fine as is,” said Netflix co-founder and CEO Reed Hastings during Netflix’s third-quarter earnings webcast in 2016.

Netflix notes in its Terms of Use that passwords “may not be shared with individuals beyond your household,” so when users sign up for an account, they automatically agree not to share. Other content streaming services generally have similar language.

When contacted for comment, a spokeswoman for Netflix referred to the company’s terms of service.

And what if you don’t follow the rules? Unauthorized password sharing can be considered a violation of the U.S. Computer Fraud and Abuse Act, according to a July 2016 ruling by the U.S. Ninth Circuit Court of Appeals.

While streaming services generally haven’t cracked down on those who share passwords, they do retain the ability to monitor how you use their service and may send warnings to violators.


Company: cnbc, Activity: cnbc, Date: 2019-01-30  Authors: jessica bursztynsky, gabjones, bloomberg, getty images, tero vesalainen, ted soqui, corbis, -brett sappington, senior director of research at parks associates
Keywords: news, cnbc, companies, hike, price, theres, terms, growth, sharing, plan, share, spur, netflix, illegal, streaming, password, services, passwords


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Netflix price hike helps Disney upcoming streaming service: Analyst

Aegis put a hold on Neflix at current levels because it’s about 8 percent higher than Anthony’s price target of $325. Disney, which agreed to purchase Twenty-First Century Fox assets last summer, said it would pull its movies from Netflix when it launches Disney+ in late 2019. New Constructs’ Trainer said Netflix is vulnerable because it’s a “one-trick pony” with an online distribution system that is not “defensible.” “You can count on one hand the number of firms that have, over time, successfu


Aegis put a hold on Neflix at current levels because it’s about 8 percent higher than Anthony’s price target of $325. Disney, which agreed to purchase Twenty-First Century Fox assets last summer, said it would pull its movies from Netflix when it launches Disney+ in late 2019. New Constructs’ Trainer said Netflix is vulnerable because it’s a “one-trick pony” with an online distribution system that is not “defensible.” “You can count on one hand the number of firms that have, over time, successfu
Netflix price hike helps Disney upcoming streaming service: Analyst Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: tyler clifford
Keywords: news, cnbc, companies, hike, content, theyve, service, helps, online, number, analyst, quarter, upcoming, disney, original, subscriber, netflix, streaming, price


Netflix price hike helps Disney upcoming streaming service: Analyst

Snap should ‘take check from anyone who comes knocking’, says expert 4 Hours Ago | 05:21

The Netflix price increase for U.S. subscribers ranges between 13 percent and 18 percent, which Victory Anthony of Aegis Capital sees as a positive, a view generally shared by much of the investment community.

“It’s all profit for the price increase and so they can either use that to invest in more original content or they can let that drop down to their down to the bottom line,” Anthony said on “Squawk Alley” Thursday.

Aegis put a hold on Neflix at current levels because it’s about 8 percent higher than Anthony’s price target of $325. The stock was trading steady around $351 midday Thursday, up more than 50 percent since the Christmas Eve washout. Netflix releases its fourth quarter earnings after the bell Thursday. Netflix last reported double-digit user growth, with 58 million U.S. and 78 million international subscribers.

Original content aside, Netflix has built its large subscriber base, in part, on licensed content from a number of third-party TV and movie studios that plan to crowd into the video streaming market, which already includes other established online rivals such as Amazon and Hulu.

Disney, which agreed to purchase Twenty-First Century Fox assets last summer, said it would pull its movies from Netflix when it launches Disney+ in late 2019. AT&T’s WarnerMedia announced in October it would release a platform in the fourth quarter of 2019. Apple could be dropping a service this year, Comcast’s NBCUniversal on Monday revealed plans for a free streaming program with ads slated for early 2020.

New Constructs’ Trainer said Netflix is vulnerable because it’s a “one-trick pony” with an online distribution system that is not “defensible.” The company can keep growing its subscriber base, but it will need to address cash flow, he said.

“You can count on one hand the number of firms that have, over time, successfully monetized original content. It’s an expensive, difficult proposition,” he argued. “Disney’s done it and part of the reason they’ve done [it] is because they’ve got better ways of monetizing.”

— Disclosure: NBCUniversal is the parent company of CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: tyler clifford
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Democrats introduce bill to hike federal minimum wage to $15 per hour

“A $15 federal minimum wage affirms the bedrock idea of fairness in our country: that hard work deserves a decent wage. The legislation likely will not become law as long as Republicans control the Senate and White House. The U.S. Chamber of Commerce, which bills itself as the world’s largest business organization, has also criticized the $15 per hour federal minimum wage plan. Meanwhile, the National Restaurant Association cautioned against a minimum wage hike to $15 per hour. But critics have


“A $15 federal minimum wage affirms the bedrock idea of fairness in our country: that hard work deserves a decent wage. The legislation likely will not become law as long as Republicans control the Senate and White House. The U.S. Chamber of Commerce, which bills itself as the world’s largest business organization, has also criticized the $15 per hour federal minimum wage plan. Meanwhile, the National Restaurant Association cautioned against a minimum wage hike to $15 per hour. But critics have
Democrats introduce bill to hike federal minimum wage to $15 per hour Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-16  Authors: jacob pramuk, james leynse, corbis historical, getty images
Keywords: news, cnbc, companies, growth, federal, president, minimum, democrats, businesses, 15, bill, introduce, wage, white, house, works, hour, hike


Democrats introduce bill to hike federal minimum wage to $15 per hour

“A $15 federal minimum wage affirms the bedrock idea of fairness in our country: that hard work deserves a decent wage. We will open up opportunities for working families and drive economic growth that lifts up all communities – because our economy works best when it works for everyone, not just the wealthy and privileged few,” Pelosi said in a statement Wednesday.

Spokespeople for the White House and Senate Majority Leader Mitch McConnell did not immediately respond to requests to comment on whether the GOP leaders would back the bill.

The legislation likely will not become law as long as Republicans control the Senate and White House. In 2016, Trump said he would rather leave the issue “to the states.” In October, his top economic advisor, Larry Kudlow, called a U.S. wage floor a “terrible idea,” saying, “Idaho is different than New York.”

The U.S. Chamber of Commerce, which bills itself as the world’s largest business organization, has also criticized the $15 per hour federal minimum wage plan. In December, Marc Freedman, vice president of employment policy at the Chamber, said many businesses “do not have the ability to absorb an increase in their labor costs.”

The legislation rekindles a debate that has raged in various industries around the country. In a statement, Mary Kay Henry, president of the Service Employees International Union, said: “Everyone who works—no matter where they are from or what the color of their skin is—deserves to be paid enough to lead a decent life and provide for their family, and that’s what a $15 minimum wage will do.” The organization represents workers including public school employees, child care providers, janitors and security officers.

Meanwhile, the National Restaurant Association cautioned against a minimum wage hike to $15 per hour. If Congress decides to “drastically increase operating costs then these small businesses will be forced to hire fewer people, reduce hours, or even close their doors,” said Shannon Meade, the organization’s vice president of public policy and workforce.

Trump has repeatedly pointed to monthly jobs and gross domestic product growth as evidence of his success. He touts the Republican tax law — which slashed rates for businesses and trimmed them for most individuals — and deregulation efforts as positive for workers.

Nonfarm payroll growth blew past expectations with 312,000 in December, while wages rose 3.2 percent from the previous year. But critics have pointed out that real wage growth adjusted for inflation has been tepid. The metric rose 0.5 percent in December.

Democrats have also taken to hammering Trump over the partial government shutdown now entering its 26th day. About 800,000 federal workers have missed paychecks as the impasse over the president’s demand for more than $5 billion to build a portion of his proposed border wall drags on. The White House now expects the closure will dock 0.1 percentage point from GDP growth for every week it lasts.

WATCH: Bernie Sanders targets Walmart with new bill


Company: cnbc, Activity: cnbc, Date: 2019-01-16  Authors: jacob pramuk, james leynse, corbis historical, getty images
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Janet Yellen says it’s ‘very possible’ the Fed has made its last rate hike of this cycle

The Federal Reserve already could be at the end of its rate-hiking cycle, former Fed Chair Janet Yellen said Monday. It’s very possible we may have seen the last interest rate hike of this cycle,” she said at the National Retail Federation’s annual Big Show event in New York. The Yellen Fed began the current rate cycle, hiking the benchmark federal funds rate once in 2015, again in 2016 and then three more times in 2017. “Perhaps another rate hike or two is perfectly possible, but nothing is bak


The Federal Reserve already could be at the end of its rate-hiking cycle, former Fed Chair Janet Yellen said Monday. It’s very possible we may have seen the last interest rate hike of this cycle,” she said at the National Retail Federation’s annual Big Show event in New York. The Yellen Fed began the current rate cycle, hiking the benchmark federal funds rate once in 2015, again in 2016 and then three more times in 2017. “Perhaps another rate hike or two is perfectly possible, but nothing is bak
Janet Yellen says it’s ‘very possible’ the Fed has made its last rate hike of this cycle Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: steve liesman, lauren thomas, jeff cox, getty images
Keywords: news, cnbc, companies, sheet, yellen, hike, rate, cycle, balance, economy, possible, janet, federal, fed, powell


Janet Yellen says it's 'very possible' the Fed has made its last rate hike of this cycle

The Federal Reserve already could be at the end of its rate-hiking cycle, former Fed Chair Janet Yellen said Monday.

“If there is a downturn in the global economy and that spills into the U.S. … It’s very possible we may have seen the last interest rate hike of this cycle,” she said at the National Retail Federation’s annual Big Show event in New York.

If Yellen is accurate, her views would fit into the market’s thinking but would be contrary to expectations from central bank officials themselves.

According to the most recent projections from individual members of the policymaking Federal Open Market Committee, there are two rate hikes likely this year and perhaps one more after that. Those expectations come after a 2018 during which the Fed hiked its benchmark rate four times to a target range of 2.25 percent to 2.5 percent.

The Yellen Fed began the current rate cycle, hiking the benchmark federal funds rate once in 2015, again in 2016 and then three more times in 2017. President Donald Trump opted not to nominate her for another term, and the current chairman, Jerome Powell, took over in February 2018.

“Perhaps another rate hike or two is perfectly possible, but nothing is baked in,” Yellen said during her comments to the retailers.

Yellen added that she expects the Fed to “take a breather [to] evaluate where the economy is” before it moves again.

Market pricing currently sees no chance of a rate hike in 2019 and in fact is pricing in a 28 percent chance of a quarter-point cut before the year comes to a close.

The Powell Fed initially had pointed to four increases this year but cut that to two in December. Since then, several members, including Powell himself, have indicated a less-aggressive approach, with the chairman saying the Fed can afford to be patient with how it approaches policy.

That includes not only with rate hikes but also with the Fed’s $4.1 trillion balance sheet, which consists mostly of a portfolio of Treasurys and mortgage-backed securities it purchased to stimulate the economy during and after the financial crisis. The Fed has been reducing the portfolio by allowing a capped maximum of $50 billion in proceeds from the bonds to roll off each month.

Market participants have expressed concern that the balance sheet reduction, which Yellen once said would be “like watching paint dry,” has in fact contributed to tightening financial conditions.

“”I am very surprised on the focus [on the balance sheet selling off],” she said. “This is meant to be done in way that’s not disruptive.”

“It was important Powell indicated it’s open for a re-think if it looks like it is a problem,” she said, but added, “I don’t see that evidence now.”

Yellen also spoke Monday on how an ongoing partial government shutdown could lead to “disruption” in the retail industry.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: steve liesman, lauren thomas, jeff cox, getty images
Keywords: news, cnbc, companies, sheet, yellen, hike, rate, cycle, balance, economy, possible, janet, federal, fed, powell


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Cleveland Fed President Loretta Mester says if inflation doesn’t rise, Fed could stop hikes

Cleveland Federal Reserve President Loretta Mester told CNBC on Friday the central bank could stop hiking interest rates this year if inflation doesn’t rise. “The economy is going to be telling us where we are,” she added, indicating the Fed could later reconsider its rate hike projections. The Fed last month raised its benchmark interest rate for a fourth time in 2018 and lowered its rate hike projection for 2019 from three to two. Mester has previously stressed Fed rate hikes are based on econ


Cleveland Federal Reserve President Loretta Mester told CNBC on Friday the central bank could stop hiking interest rates this year if inflation doesn’t rise. “The economy is going to be telling us where we are,” she added, indicating the Fed could later reconsider its rate hike projections. The Fed last month raised its benchmark interest rate for a fourth time in 2018 and lowered its rate hike projection for 2019 from three to two. Mester has previously stressed Fed rate hikes are based on econ
Cleveland Fed President Loretta Mester says if inflation doesn’t rise, Fed could stop hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: berkeley lovelace jr, david a grogan
Keywords: news, cnbc, companies, hike, data, president, rise, loretta, inflation, cleveland, rate, powell, report, widely, stop, doesnt, rates, 2018, hikes, mester, fed


Cleveland Fed President Loretta Mester says if inflation doesn't rise, Fed could stop hikes

Cleveland Federal Reserve President Loretta Mester told CNBC on Friday the central bank could stop hiking interest rates this year if inflation doesn’t rise.

The U.S. economy is “in a really good spot,” said Mester, who was a voting member of the policymaking Federal Open Market Committee in 2018 but is not this year. “If we don’t see inflation picking up and we see the labor market staying reasonably strong from where we are now, that may tell us we’re not neutral.”

“The economy is going to be telling us where we are,” she added, indicating the Fed could later reconsider its rate hike projections.

The Fed last month raised its benchmark interest rate for a fourth time in 2018 and lowered its rate hike projection for 2019 from three to two. That helped fan a stock sell-off in which the Dow Jones Industrial Average and Nasdaq saw their biggest weekly losses in more than 10 years and the S&P 500 had its worst week since August 2011.

Fed chief Jerome Powell did leave the door open to other options for this year, emphasizing “data dependency” and saying if data do not hold up in 2019 the Fed may change course.

Mester joined “Squawk Box” moments before the widely anticipated December jobs report. The Labor Department report said nonfarm payrolls surged by 312,000 last month, crushing estimates of just 176,000.

President Donald Trump has repeatedly expressed frustration with the Fed’s moves to raise rates, arguing the central bank could disrupt the U.S. economic recovery.

Several well-respected Wall Street voices, including widely followed economist Mohamed El-Erian and UBS’ Art Cashin, have argued Powell was forced to go through with a fourth rate hike in 2018 due to the risk of appearing politically coerced. However, Powell has denied that the Fed’s decision-making has been influenced by any political pressure.

Mester has previously stressed Fed rate hikes are based on economic data, adding the so-called “neutral rate” is a moving target and can vary over time.

WATCH:The full interview with Cleveland Fed President Loretta Mester


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: berkeley lovelace jr, david a grogan
Keywords: news, cnbc, companies, hike, data, president, rise, loretta, inflation, cleveland, rate, powell, report, widely, stop, doesnt, rates, 2018, hikes, mester, fed


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