Costco is looking at alternative sourcing and price hikes as tariffs loom

Costco Wholesale on Thursday reported quarterly profit and revenue that beat Wall Street estimates and said it would tackle the proposed round of tariffs on Chinese imports by sourcing goods from other countries and possible price increases. The warehouse club operator is the latest American retailer to warn of tariff hit, after dollar store chains Dollar Tree and Dollar General, earlier in the day, said rising tariffs would impact their businesses and consumers. Costco’s Chief Financial Officer


Costco Wholesale on Thursday reported quarterly profit and revenue that beat Wall Street estimates and said it would tackle the proposed round of tariffs on Chinese imports by sourcing goods from other countries and possible price increases. The warehouse club operator is the latest American retailer to warn of tariff hit, after dollar store chains Dollar Tree and Dollar General, earlier in the day, said rising tariffs would impact their businesses and consumers. Costco’s Chief Financial Officer
Costco is looking at alternative sourcing and price hikes as tariffs loom Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: fred imbert, sam meredith, eustance huang
Keywords: news, cnbc, companies, alternative, price, tariffs, sourcing, hikes, impact, wholesale, warehouse, dollar, galanti, looking, warn, costco, loom, whats, day, prices


Costco is looking at alternative sourcing and price hikes as tariffs loom

Costco Wholesale on Thursday reported quarterly profit and revenue that beat Wall Street estimates and said it would tackle the proposed round of tariffs on Chinese imports by sourcing goods from other countries and possible price increases.

The warehouse club operator is the latest American retailer to warn of tariff hit, after dollar store chains Dollar Tree and Dollar General, earlier in the day, said rising tariffs would impact their businesses and consumers.

Costco’s Chief Financial Officer Richard Galanti, on a post-earnings call with analysts, said the situation is “pretty fluid” and the company is looking to accelerate shipments before certain tariffs are put into effect.

“At the end of the day, prices will go up on things. What’s interesting is that it’s hard to predict what the impact is,” Galanti said.

“We want to be the last to raise them. And when prices are going down, we want to be the first to lower them. We’re not afraid to use some of those monies to again drive business.”


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: fred imbert, sam meredith, eustance huang
Keywords: news, cnbc, companies, alternative, price, tariffs, sourcing, hikes, impact, wholesale, warehouse, dollar, galanti, looking, warn, costco, loom, whats, day, prices


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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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Stock market on edge as traders wait to see if Trump hikes tariffs

U.S. equity futures were little changed Thursday as traders awaited a midnight deadline for tariffs to increase. Stock futures opened slightly lower, with S&P futures contracts down 0.1%. President Donald Trump set a 12:01 ET deadline to slap higher tariffs on $200 billion worth of Chinese goods. Hours before the meeting Thursday, the president said tariffs are an “excellent” alternative to a trade deal with China. “What concerns me the most is, even if we do get a trade deal — which I think we


U.S. equity futures were little changed Thursday as traders awaited a midnight deadline for tariffs to increase. Stock futures opened slightly lower, with S&P futures contracts down 0.1%. President Donald Trump set a 12:01 ET deadline to slap higher tariffs on $200 billion worth of Chinese goods. Hours before the meeting Thursday, the president said tariffs are an “excellent” alternative to a trade deal with China. “What concerns me the most is, even if we do get a trade deal — which I think we
Stock market on edge as traders wait to see if Trump hikes tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: kate rooney, drew angerer, getty images
Keywords: news, cnbc, companies, week, hikes, trade, president, trump, tariffs, market, edge, futures, deadline, sp, wait, deal, tariff, white, stock, traders


Stock market on edge as traders wait to see if Trump hikes tariffs

U.S. equity futures were little changed Thursday as traders awaited a midnight deadline for tariffs to increase.

Stock futures opened slightly lower, with S&P futures contracts down 0.1%. Dow and Nasdaq futures both fell 0.12%.

China’s Vice Premier Liu He is meeting with top U.S. trade officials Thursday evening in Washington, just hours before the new tariffs are set to go into effect. President Donald Trump set a 12:01 ET deadline to slap higher tariffs on $200 billion worth of Chinese goods. Trump later suggested that the White House could reverse that decision, based on progress in negotiations.

Hours before the meeting Thursday, the president said tariffs are an “excellent” alternative to a trade deal with China.

Peter Boockvar, chief investment officer of Bleakley Advisory Group, said the market reaction will be extreme in either direction, depending on the outcome of Thursday night’s dinner.

“[Friday] is very binary. If you get a deal we’re going to rally — if you don’t, we’re going to take a really nice hit to the downside,” Boockvar said.

Boockvar is predicting an extension of talks and a delay by the White House.

“I understand what they’re trying to do by putting China’s feet to the fire. But I have to believe that they’ll extend the talks and they’ll delay the tariffs,” Boockvar said. “The president will talk tough, and we’ll get a relief rally tomorrow.”

Stocks extended this week’s extreme sell-off on Thursday. The Dow Jones Industrial Average has fallen more than 650 points this week, while the S&P 500 has lost about 2.5% following the president’s Sunday tweet threatening tariff hikes.

On Monday, stocks shook off the president’s weekend tweet as a mere negotiation tactic. But tougher rhetoric by top U.S. trade representative Robert Lighthizer weighed on major indexes. The White House set a Friday deadline to strike a deal before existing tariffs increase from 10% to 25%.

Markets again seesawed after the president said it was possible to get a trade deal with China this week. The Dow fell nearly 450 points at its intraday low on Thursday before cutting losses and ending the day just 138 points down.

Dave Lafferty, chief market strategist at Natixis Investment Managers, said any positive market reaction is still likely to be underwhelming.

“This is the new normal for U.S.-China trade relations — it’s almost become trade policy by tariff threat,” Lafferty said. “What concerns me the most is, even if we do get a trade deal — which I think we will — the market’s positive reaction will be fleeting.”

Still, traders are in a wait-and-see mode.

“The markets are ruled by the news headlines, and at this time, no one can guess which way the president or China is going to go,” said Chris Rupkey, chief financial economist at MUFG Union Bank. Rupkey said investors are “underestimating” U.S. economic damage if tariffs increase permanently.

“Markets have discounted a lot of bad news, but they haven’t discounted a recession as a result of the trade war escalation with China,” he said.

The Cboe Volatility Index, a measure of the 30-day implied volatility of the S&P 500 that’s commonly known as Wall Street’s “fear gauge,” hit its highest level since Jan. 4 on Thursday.

Goldman Sachs assured its clients that even if the tariff hike is implemented at the deadline, there’s room for some sort of deal.

“We note that details in the notice implementing the tariff hike indicate that exports that have already left Chinese ports before May 10 will not be subject to the increase,” Goldman economist Jan Hatzius said. “This creates an unofficial window, potentially lasting a couple of weeks, in which negotiations can continue and generates a ‘soft’ deadline to reach a deal.”

Others are less hopeful. In a note to clients, Cowen Managing Director and Washington strategist Chris Krueger highlighted Trump’s rally Wednesday night in Florida, his tweets over the week, and a comment Thursday that there was an “alternative” to a deal. Krueger said it’s “hard to not be more pessimistic on the U.S.-China narrative, i.e. The Return of Tariff Man.”

“Many are still optimistic tariffs can be avoided one minute past midnight (we are not),” Krueger said.

— CNBC’s Fred Imbert, Yun Li and Michael Bloom contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: kate rooney, drew angerer, getty images
Keywords: news, cnbc, companies, week, hikes, trade, president, trump, tariffs, market, edge, futures, deadline, sp, wait, deal, tariff, white, stock, traders


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Fed Chair Jerome Powell could resign if ‘browbeaten’ enough: Sri Kumar

In an interview with the CBS program “60 Minutes” in March, he was asked whether he listened to the president. When asked if the president could fire him, Powell said, “Well, the law is clear that I have a four-year term. The Fed last raised rates in December and at the time implied two hikes in 2019. However, in early January, Powell said the central bank would be “patient” in its approach to monetary policy. While he sees no rate hikes or rate cuts on the horizon, he thinks that could change s


In an interview with the CBS program “60 Minutes” in March, he was asked whether he listened to the president. When asked if the president could fire him, Powell said, “Well, the law is clear that I have a four-year term. The Fed last raised rates in December and at the time implied two hikes in 2019. However, in early January, Powell said the central bank would be “patient” in its approach to monetary policy. While he sees no rate hikes or rate cuts on the horizon, he thinks that could change s
Fed Chair Jerome Powell could resign if ‘browbeaten’ enough: Sri Kumar Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: michelle fox, jim watson, afp, getty images
Keywords: news, cnbc, companies, powell, rate, resign, president, bank, central, jerome, chair, sri, rates, kumar, fed, thinks, market, hikes, browbeaten


Fed Chair Jerome Powell could resign if 'browbeaten' enough: Sri Kumar

Powell, however, has dismissed such talk. In an interview with the CBS program “60 Minutes” in March, he was asked whether he listened to the president. He responded, “I don’t comment on the president or any elected official.” When asked if the president could fire him, Powell said, “Well, the law is clear that I have a four-year term. And I fully intend to serve it.”

The Fed last raised rates in December and at the time implied two hikes in 2019. However, in early January, Powell said the central bank would be “patient” in its approach to monetary policy. Then in March, the Federal Open Market Committee suggested no more rate increases will be coming this year.

Chicago Federal Reserve President Charles Evans told CNBC on Monday that he’d be comfortable leaving interest rates alone until autumn 2020 to help ensure sustained inflation in the U.S. However, he said he wouldn’t categorize the December 2018 rate hike as a mistake.

Sri-Kumar thinks the Fed loses credibility when it doesn’t recognize that it made an error, pointing to Powell’s “pivot” in January, just weeks after the central bank suggested two hikes for 2019.

“Something is wrong with that,” he said. “You can’t expect to be credible under those circumstances.”

In fact, he believes the Fed responded to the markets in shifting its policy this year. And that is not in its edict.

“The Fed’s mandate supposed to be employment and inflation.”

Sri-Kumar contends that if the central bank puts its plan on hold to increase rates and then helps the market go up, it creates a “moral hazard.”

“It tells me the Fed is going to be providing me a ‘Powell put’ and I can keep pushing up equity prices because if there is a correction, the Fed is going to support me.”

However, Art Hogan, chief market strategist at National Securities, believes the Fed’s change of heart had a lot to do with global economic conditions.

“Think back to how we felt about the world in December and how we think about it now. We certainly are in a different place,” he said on “Power Lunch.” “The Fed has done a good job at being very transparent, but they’re clearly at neutral.”

While he sees no rate hikes or rate cuts on the horizon, he thinks that could change since the Fed is data dependent.

“If the data improve, and that’s what markets would like see, they’ll probably have to raise rates, sooner rather than later,” Hogan said.

The Fed declined to comment on Sri-Kumar’s remarks.


Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: michelle fox, jim watson, afp, getty images
Keywords: news, cnbc, companies, powell, rate, resign, president, bank, central, jerome, chair, sri, rates, kumar, fed, thinks, market, hikes, browbeaten


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Higher minimum wage means restaurants raise prices and fewer employee hours, survey finds

For restaurants, minimum wage hikes usually mean higher menu prices and fewer employee hours, according to a survey released Wednesday. Six states, including Illinois and Maryland, have approved laws phasing in a $15 minimum wage. Notably, McDonald’s told the NRA last month that it would no longer join in its lobbying efforts against minimum wage hikes. Some operators responded to the minimum wage increases by cutting costs, with 64 percent saying they reduced employee hours, and 43 percent sayi


For restaurants, minimum wage hikes usually mean higher menu prices and fewer employee hours, according to a survey released Wednesday. Six states, including Illinois and Maryland, have approved laws phasing in a $15 minimum wage. Notably, McDonald’s told the NRA last month that it would no longer join in its lobbying efforts against minimum wage hikes. Some operators responded to the minimum wage increases by cutting costs, with 64 percent saying they reduced employee hours, and 43 percent sayi
Higher minimum wage means restaurants raise prices and fewer employee hours, survey finds Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: amelia lucas, patrick t fallon, bloomberg, getty images
Keywords: news, cnbc, companies, wage, raise, hikes, means, wages, 15, survey, respondents, higher, restaurants, hours, finds, restaurant, prices, workers, minimum


Higher minimum wage means restaurants raise prices and fewer employee hours, survey finds

For restaurants, minimum wage hikes usually mean higher menu prices and fewer employee hours, according to a survey released Wednesday.

Harri, a workplace management software company that works with restaurants, surveyed 173 restaurants between Feb. 28 and March 15 about the impact of raising the minimum wage. The respondents represent more than 4,000 restaurant locations ranging from fine dining to fast food.

Fast-food workers across the country have been driving the fight for a higher minimum wage to keep up with the cost of living. States across the U.S. have been raising their minimum wages. Six states, including Illinois and Maryland, have approved laws phasing in a $15 minimum wage. Washington, D.C., currently has the highest minimum — $13.25 — and that is set to rise to $14 an hour on July 1 and to $15 on July 1, 2020.

However, the federal minimum wage has remained stagnant since 2009. House Democrats have been pushing a bill to raise the federal minimum wage to $15 per hour from $7.25, but it is unlikely to pass.

Proponents of increasing the minimum wage argue that it can stimulate the economy, reduce income inequality and decrease taxpayer spending on government assistance programs. Opponents like the National Restaurant Association say that it eliminates jobs and hurts small businesses. But not all restaurants oppose these efforts. Notably, McDonald’s told the NRA last month that it would no longer join in its lobbying efforts against minimum wage hikes.

The restaurant industry employs a large portion of minimum wage workers. It’s no surprise that 83 percent of survey respondents affected by minimum wage hikes reported that their labor costs rose at least three percent.

Twenty-three percent responded to minimum wage hikes by not making any changes to their business.

But the majority did. The most popular response — from 71 percent of operators — was to raise menu prices. Nearly half reworked their food and beverage options to reduce costs.

Some operators responded to the minimum wage increases by cutting costs, with 64 percent saying they reduced employee hours, and 43 percent saying they eliminated jobs.

Outside the restaurant industry, companies like Bank of America and Target have been hiking internal minimum wages to attract and retain employees in a tight labor market. Similarly, 87 percent of survey respondents affected by minimum wage hikes said that they increased wages for workers who made more than the minimum wage.


Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: amelia lucas, patrick t fallon, bloomberg, getty images
Keywords: news, cnbc, companies, wage, raise, hikes, means, wages, 15, survey, respondents, higher, restaurants, hours, finds, restaurant, prices, workers, minimum


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Fed’s Quarles says more rate hikes could be ahead ‘at some point’ as economy improves

At the same time, he was largely dismissive of recent data that showed a slowdown in nonfarm payrolls creation and weak consumer spending. “In regard to policy, I am very comfortable remaining patient at this point and monitoring the incoming data,” he said, echoing the Fed’s most recent policy statement. In the language of central banking, my estimate of the neutral policy rate remains somewhat north of where we are now.” The Fed’s policy funds rate is currently set in a range between 2.25 perc


At the same time, he was largely dismissive of recent data that showed a slowdown in nonfarm payrolls creation and weak consumer spending. “In regard to policy, I am very comfortable remaining patient at this point and monitoring the incoming data,” he said, echoing the Fed’s most recent policy statement. In the language of central banking, my estimate of the neutral policy rate remains somewhat north of where we are now.” The Fed’s policy funds rate is currently set in a range between 2.25 perc
Fed’s Quarles says more rate hikes could be ahead ‘at some point’ as economy improves Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-29  Authors: jeff cox
Keywords: news, cnbc, companies, point, improves, market, economy, policy, strong, recent, hikes, growth, neutral, fed, quarles, ahead, data, feds, rate


Fed's Quarles says more rate hikes could be ahead 'at some point' as economy improves

Federal Reserve Governor Randal Quarles voiced confidence in the U.S. economy in a speech Friday and said more interest rate hikes likely will be appropriate, countering the prevailing market wisdom.

Speaking to economists in New York, Quarles, who serves as the central bank’s vice chair for supervision, said the labor market looks strong and productivity is improving. At the same time, he was largely dismissive of recent data that showed a slowdown in nonfarm payrolls creation and weak consumer spending.

“In regard to policy, I am very comfortable remaining patient at this point and monitoring the incoming data,” he said, echoing the Fed’s most recent policy statement. “That said, my sense is that further increases in the policy rate may be necessary at some point, a stance I believe is consistent with my optimistic view of the economy’s growth potential and momentum. In the language of central banking, my estimate of the neutral policy rate remains somewhat north of where we are now.”

The remarks come nine days after the policymaking Federal Open Market Committee voted to hold rates steady and indicated that no additional increases are likely this year.

However, in recent days several Fed officials have said that talk about rate cuts is premature. Current market pricing is for the first cut to come as soon as September, with about a 25 percent chance of another decrease before the end of 2019.

The Fed’s policy funds rate is currently set in a range between 2.25 percent and 2.5 percent. Quarles’ belief that the “neutral level” that is neither stimulative nor restrictive on growth is significant. When Fed Chairman Jerome Powell said in October that the FOMC was “a long way” from neutral, it set off a violent sell-off on Wall Street briefly touched on bear market territory.

President Donald Trump, who nominated Quarles, has been harsh on the Fed, saying the pattern of rate hikes, including our in 2018, have hampered an otherwise strong economy.

Quarles acknowledged that “growth has slowed, at least temporarily,” as shown in recent data.

“That said, I remain optimistic about the outlook for the U.S. economy, and I think that we have the potential to maintain growth at a healthy pace in the years ahead,” he said.

“Looking past the near-term data, I see many reasons to expect relatively strong growth in the coming years, supported by gains in the productive capacity of the economy,” he added.

The comments came to the Shadow Open Market Committee, a group of economists who monitor Fed activity and gather to recommend policy approaches.

While veering from the notion that the Fed is on indefinite hold, Quarles said the Fed should be data-dependent in its decision-making. However, he qualified that by saying that it shouldn’t make decisions based on only isolated metrics.

“I prefer a framework where we make it clear that we are focused on broad trends–elsewhere I have used the aviation analogy that we should not ‘chase the needles’ on the instrument panel. We should be clear that, while we will respond to clear and durable evolution in these broad trends, we are not reacting to every piece of volatile data,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-03-29  Authors: jeff cox
Keywords: news, cnbc, companies, point, improves, market, economy, policy, strong, recent, hikes, growth, neutral, fed, quarles, ahead, data, feds, rate


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Fed’s rate pause is an ‘opportunity’ for Indonesia to spur growth, says its finance minister

The Federal Reserve’s pause in interest rate hikes is a relief for many emerging economies, and represents an opportunity for Indonesia to accelerate growth, the Asian country’s finance minister told CNBC on Monday. “For us … this is an opportunity to actually accelerate the growth, but we really have to be very careful,” Sri Mulyani Indrawati told CNBC at the Credit Suisse Asian Investment Conference in Hong Kong. The U.S. central bank surprised investors by adopting a sharp dovish stance las


The Federal Reserve’s pause in interest rate hikes is a relief for many emerging economies, and represents an opportunity for Indonesia to accelerate growth, the Asian country’s finance minister told CNBC on Monday. “For us … this is an opportunity to actually accelerate the growth, but we really have to be very careful,” Sri Mulyani Indrawati told CNBC at the Credit Suisse Asian Investment Conference in Hong Kong. The U.S. central bank surprised investors by adopting a sharp dovish stance las
Fed’s rate pause is an ‘opportunity’ for Indonesia to spur growth, says its finance minister Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-25  Authors: weizhen tan, graham crouch, bloomberg, getty images
Keywords: news, cnbc, companies, feds, opportunity, outlook, spur, told, sri, pause, really, mulyani, growth, rate, finance, indonesia, hikes, minister


Fed's rate pause is an 'opportunity' for Indonesia to spur growth, says its finance minister

The Federal Reserve’s pause in interest rate hikes is a relief for many emerging economies, and represents an opportunity for Indonesia to accelerate growth, the Asian country’s finance minister told CNBC on Monday.

“For us … this is an opportunity to actually accelerate the growth, but we really have to be very careful,” Sri Mulyani Indrawati told CNBC at the Credit Suisse Asian Investment Conference in Hong Kong.

“Because this pause in increasing rates is also showing that the global economy environment is not good. So we really have to be very careful in seeing this signal,” she added.

The U.S. central bank surprised investors by adopting a sharp dovish stance last Wednesday, projecting no further interest rate hikes this year, and justifying its more temperate outlook by cutting 2019 growth outlook for the world’s largest economy.

Meanwhile, a raft of weak economic data around the world also stoked recession fears.

Germany’s manufacturing activity dropped to its lowest level in more than six years in March, according to data from IHS Markit; while in the euro zone as a whole, manufacturing fell to its lowest level since April 2013.

The halt in rate hikes — and the Fed signalling in January that it will be “patient” with monetary policy — is “relieving pressure” for many emerging economies, Sri Mulyani said. That’s especially welcome for Indonesia, Southeast Asia’s largest economy, as it suffers from capital outflows, she said.


Company: cnbc, Activity: cnbc, Date: 2019-03-25  Authors: weizhen tan, graham crouch, bloomberg, getty images
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The Fed is ‘not yet done’ with rate hikes, according to S&P Global Ratings

Still expecting one more rate hike from Fed this year: Analyst 3:16 AM ET Thu, 21 March 2019 | 02:39The U.S. Federal Reserve on Wednesday kept interest rates unchanged and slashed all projections of a rate hike this year. Still, according to U.S.-based financial services giant S&P Global Ratings, the Fed is “not yet done” with rate hikes. Speaking to CNBC’s “Capital Connection” on Thursday, Shaun Roache said better-than-expected economic growth and strong labor markets leave room for a hike. The


Still expecting one more rate hike from Fed this year: Analyst 3:16 AM ET Thu, 21 March 2019 | 02:39The U.S. Federal Reserve on Wednesday kept interest rates unchanged and slashed all projections of a rate hike this year. Still, according to U.S.-based financial services giant S&P Global Ratings, the Fed is “not yet done” with rate hikes. Speaking to CNBC’s “Capital Connection” on Thursday, Shaun Roache said better-than-expected economic growth and strong labor markets leave room for a hike. The
The Fed is ‘not yet done’ with rate hikes, according to S&P Global Ratings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-22  Authors: shirley tay, andrew harrer, bloomberg, getty images
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The Fed is 'not yet done' with rate hikes, according to S&P Global Ratings

Still expecting one more rate hike from Fed this year: Analyst 3:16 AM ET Thu, 21 March 2019 | 02:39

The U.S. Federal Reserve on Wednesday kept interest rates unchanged and slashed all projections of a rate hike this year.

Still, according to U.S.-based financial services giant S&P Global Ratings, the Fed is “not yet done” with rate hikes. Its chief Asia-Pacific economist told CNBC he thinks another increase may come sometime this year or early next year.

Speaking to CNBC’s “Capital Connection” on Thursday, Shaun Roache said better-than-expected economic growth and strong labor markets leave room for a hike.

Wednesday’s statement was a dovish turn from previous Federal Open Market Committee projections. The committee had previously predicted two rate hikes in 2019, following four increases in 2018.

The FOMC said it would be “patient” before any further increase in rates.

Given the “soft patch” the global economy is going through, Roache acknowledged that “it makes sense for the Fed to pause to watch the data to see how things evolve.” Still, he said he felt that concerns about global growth were “a little bit overdone.”


Company: cnbc, Activity: cnbc, Date: 2019-03-22  Authors: shirley tay, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, federal, ratings, growth, rate, roache, hike, fed, projections, global, increase, according, hikes, sp


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Cramer: Investors need a new playbook now that the Fed ended rate hikes this year

Investors need not worry that the Federal Reserve induced a market “sea change” by calling off interest rate increases this year and adjust their game plan to make money, CNBC’s Jim Cramer said Thursday. The major averages all rose higher during the session on the agency’s monetary policy reversal, he said. The Fed’s benchmark funds rate will remain in a range of 2.25 percent to 2.5 percent. “I’m not saying you should swap out of the losers and buy the winners immediately,” Cramer said. “But the


Investors need not worry that the Federal Reserve induced a market “sea change” by calling off interest rate increases this year and adjust their game plan to make money, CNBC’s Jim Cramer said Thursday. The major averages all rose higher during the session on the agency’s monetary policy reversal, he said. The Fed’s benchmark funds rate will remain in a range of 2.25 percent to 2.5 percent. “I’m not saying you should swap out of the losers and buy the winners immediately,” Cramer said. “But the
Cramer: Investors need a new playbook now that the Fed ended rate hikes this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-21  Authors: tyler clifford
Keywords: news, cnbc, companies, need, market, worry, inflation, rate, fed, right, sea, cramer, stocks, ended, money, hikes, playbook, investors


Cramer: Investors need a new playbook now that the Fed ended rate hikes this year

Investors need not worry that the Federal Reserve induced a market “sea change” by calling off interest rate increases this year and adjust their game plan to make money, CNBC’s Jim Cramer said Thursday.

The major averages all rose higher during the session on the agency’s monetary policy reversal, he said.

“This is a dramatic shift—we don’t need to worry about more rate hikes—and that’s why it’s causing a sea change in the stock market right now because we’re in a low growth environment again,” the “Mad Money” host said.

Although Chairman Jerome Powell and the central bank reduced the forecast on GDP growth and inflation, there are more stocks that can perform well in low-growth rather than high-growth conditions, he added.

As a guideline, Cramer suggests picking stocks whose sales won’t get knocked down by an easing economy, focusing on high-yielding dividend stocks, buying the fastest-growing names while inflation is near flat, and loading up on companies that do a lot of business overseas, including those impacted by the trade war with China, because the dollar is getting weaker.

The Fed’s benchmark funds rate will remain in a range of 2.25 percent to 2.5 percent.

“I’m not saying you should swap out of the losers and buy the winners immediately,” Cramer said. “But the bottom line is that you need to be in the right frame of mind for this new market for this playbook” below.


Company: cnbc, Activity: cnbc, Date: 2019-03-21  Authors: tyler clifford
Keywords: news, cnbc, companies, need, market, worry, inflation, rate, fed, right, sea, cramer, stocks, ended, money, hikes, playbook, investors


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Fed Chair Powell: ‘The law is clear,’ Trump can’t fire me

Federal Reserve Chairman Jerome Powell said in an interview aired Sunday that he does not think he can be fired by President Donald Trump. While continuing to avoid direct comment on the president’s withering criticism of central bank interest rate policy, Powell told CBS’ “60 Minutes” that Trump can’t remove him from office. “The law is clear that I have a four-year term, and I fully intend to serve it,” Powell told the news magazine show. The Fed under Powell unanimously approved four rate hik


Federal Reserve Chairman Jerome Powell said in an interview aired Sunday that he does not think he can be fired by President Donald Trump. While continuing to avoid direct comment on the president’s withering criticism of central bank interest rate policy, Powell told CBS’ “60 Minutes” that Trump can’t remove him from office. “The law is clear that I have a four-year term, and I fully intend to serve it,” Powell told the news magazine show. The Fed under Powell unanimously approved four rate hik
Fed Chair Powell: ‘The law is clear,’ Trump can’t fire me Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-11  Authors: jeff cox
Keywords: news, cnbc, companies, hikes, cant, term, law, chair, powell, clear, policy, rate, fed, presidents, told, yellen, trump


Fed Chair Powell: 'The law is clear,' Trump can't fire me

Federal Reserve Chairman Jerome Powell said in an interview aired Sunday that he does not think he can be fired by President Donald Trump.

While continuing to avoid direct comment on the president’s withering criticism of central bank interest rate policy, Powell told CBS’ “60 Minutes” that Trump can’t remove him from office.

“The law is clear that I have a four-year term, and I fully intend to serve it,” Powell told the news magazine show. Asked directly if he thought Trump could fire him, he said, “no.”

A series of interest rate hikes in 2018 drew the president’s wrath, even though he nominated Powell to the Fed position after choosing not to put up former Chair Janet Yellen for a second term. The Fed under Powell unanimously approved four rate hikes in 2018, continuing a move toward policy normalization that Yellen began in December 2015. Trump has said the rate hikes are the biggest threat to U.S. growth.

During that period, the U.S. saw its best economic gains in a recovery that began in mid-2009. GDP rose nearly 3 percent for the year, though most economists see that cooling off in the years ahead.

In that regard, Powell reiterated the Fed’s recently stated position that it can be patient when it comes to the future path of the policy as it watches the incoming data. Friday’s nonfarms payrolls report indicated a gain of just 20,000, helping to ratify concerns that the first quarter will show little, if any, economic growth.

Powell said that the Fed, while likely on hold for a while, will be making its policy decisions based on the data and not on political considerations.

“We are directed to execute policy in a strictly nonpolitical way, serving all Americans, and that’s what we do,” he said. “We are independent in that sense.”

Powell told “60 Minutes” anchor Scott Pelley that he thinks the economy is still strong, though he acknowledged that weakness around the world could start to hit the U.S.

“I would say there’s no reason why this economy cannot continue to expand,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-03-11  Authors: jeff cox
Keywords: news, cnbc, companies, hikes, cant, term, law, chair, powell, clear, policy, rate, fed, presidents, told, yellen, trump


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