China’s economy is fine; Trump, Xi won’t fight trade war

China’s economy is fine, U.S. President Donald Trump and Chinese President Xi Jinping won’t fight a trade war and the Federal Reserve is a friend. Let’s begin with a test about the state of China’s economy. For last year as a whole, China’s inflation was 2.1 percent — a number that would even pass the price stability test from the Bundesbank’s stern taskmasters. Perhaps a spot of a local difficulty, as the Brits would say, but nothing that China’s 46 percent gross savings rate can’t handle. Does


China’s economy is fine, U.S. President Donald Trump and Chinese President Xi Jinping won’t fight a trade war and the Federal Reserve is a friend. Let’s begin with a test about the state of China’s economy. For last year as a whole, China’s inflation was 2.1 percent — a number that would even pass the price stability test from the Bundesbank’s stern taskmasters. Perhaps a spot of a local difficulty, as the Brits would say, but nothing that China’s 46 percent gross savings rate can’t handle. Does
China’s economy is fine; Trump, Xi won’t fight trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-13  Authors: dr michael ivanovitch, patrik stollarz, afp, getty images
Keywords: news, cnbc, companies, rate, thats, savings, test, public, gdp, trump, inflation, china, xi, chinas, fine, fight, economy, trade, wont, debt, war


China's economy is fine; Trump, Xi won't fight trade war

China’s economy is fine, U.S. President Donald Trump and Chinese President Xi Jinping won’t fight a trade war and the Federal Reserve is a friend.

That’s what I think of the three main issues worrying the financial markets.

Let’s begin with a test about the state of China’s economy.

Does China have an inflation problem? No, the reported headline price inflation in December was 1.9 percent. That’s what hits the Chinese real purchasing power and determines the scope of discretionary monetary policy. Again, that’s the headline rate because Beijing does not play around with an array of manipulative inflation “measures.” For last year as a whole, China’s inflation was 2.1 percent — a number that would even pass the price stability test from the Bundesbank’s stern taskmasters.

Is China having a problem of bad public finances? Perhaps a spot of a local difficulty, as the Brits would say, but nothing that China’s 46 percent gross savings rate can’t handle. Broadly defined public sector accounts are expected to show a budget deficit of about 3 percent of GDP for the last calendar year, and the gross public debt is currently estimated at 46.3 percent of GDP. The debt could be a significant underestimate, but only China knows the truth about that, partly as a result of its own methodology of defining and measuring national accounts.

Does China need to import foreign savings to finance its public debt and budget deficits? No, China is a net capital exporter to the tune of 1.2 percent of its GDP.


Company: cnbc, Activity: cnbc, Date: 2019-01-13  Authors: dr michael ivanovitch, patrik stollarz, afp, getty images
Keywords: news, cnbc, companies, rate, thats, savings, test, public, gdp, trump, inflation, china, xi, chinas, fine, fight, economy, trade, wont, debt, war


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US stock futures slip as investors await inflation data

U.S. stock index futures were lower on Friday ahead of the release of key inflation data. ET, Dow Jones Industrial Average futures fell 50 points, indicating a decline of 73.92 points at the open. The latest CPI figures as well as core CPI data for December are scheduled for release at 8:30 a.m. Meanwhile, market focus was also attuned to news that trade talks between the world’s two largest economies could soon move to higher levels. U.S. and Chinese officials are working on arrangements of hig


U.S. stock index futures were lower on Friday ahead of the release of key inflation data. ET, Dow Jones Industrial Average futures fell 50 points, indicating a decline of 73.92 points at the open. The latest CPI figures as well as core CPI data for December are scheduled for release at 8:30 a.m. Meanwhile, market focus was also attuned to news that trade talks between the world’s two largest economies could soon move to higher levels. U.S. and Chinese officials are working on arrangements of hig
US stock futures slip as investors await inflation data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: sam meredith
Keywords: news, cnbc, companies, slip, inflation, stock, data, release, officials, cpi, trade, talks, investors, await, points, higher, sp, futures


US stock futures slip as investors await inflation data

U.S. stock index futures were lower on Friday ahead of the release of key inflation data.

At around 7:10 a.m. ET, Dow Jones Industrial Average futures fell 50 points, indicating a decline of 73.92 points at the open. Futures on the S&P 500 and Nasdaq 100 were trading lower.

The latest CPI figures as well as core CPI data for December are scheduled for release at 8:30 a.m. ET.

The moves on Friday happened after after Federal Reserve Chairman Jerome Powell reiterated the U.S. central bank would be patient about raising interest rates over the coming months.

Meanwhile, market focus was also attuned to news that trade talks between the world’s two largest economies could soon move to higher levels.

U.S. and Chinese officials are working on arrangements of higher-level trade talks after mid-level officials concluded talks earlier this week. U.S. Treasury Secretary Steven Mnuchin said Thursday that Vice Premier Liu would most likely visit Washington later in January for further negotiations.

Major stock indexes on Wall Street closed slightly higher on Thursday, with the S&P 500 notching its first five-day winning streak since September.

However, gains were capped after disappointing holiday sales from Macy’s and a revenue guidance cut from American Airlines pressured retail and airline shares. Fear that the U.S. government shutdown might continue for a long time also weighed on stocks in the previous session.


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: sam meredith
Keywords: news, cnbc, companies, slip, inflation, stock, data, release, officials, cpi, trade, talks, investors, await, points, higher, sp, futures


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Asia markets mostly lower as China inflation data miss expectations

Asia markets mostly slipped on Thursday following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington. Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The moves came after official Chinese inflation data for December, released at the same time as the market open, came in below expec


Asia markets mostly slipped on Thursday following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington. Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The moves came after official Chinese inflation data for December, released at the same time as the market open, came in below expec
Asia markets mostly lower as China inflation data miss expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: eustance huang
Keywords: news, cnbc, companies, lower, miss, expectations, investors, economy, came, trade, inflation, close, markets, data, asia, chinese, watched, war, china


Asia markets mostly lower as China inflation data miss expectations

Asia markets mostly slipped on Thursday following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington.

Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The Shanghai composite slipped 0.36 percent to close at 2,535.28 while the Shenzhen composite shed 0.265 percent to 1,303.48. The Shenzhen component also fell 0.259 percent to close at around 7,428.61.

Hong Kong’s Hang Seng index was largely flat in its final hour of trade, with shares of Chinese tech giant Tencent gaining 0.31 percent.

The moves came after official Chinese inflation data for December, released at the same time as the market open, came in below expectations.

China’s December consumer inflation (CPI) — a gauge of prices for goods and services — rose 1.9 percent on year. That was lower than economists’ expectations of a 2.1 percent growth, according to a Reuters’ poll. Producer inflation rose 0.9 percent on-year in December, which was lower than the 1.6 percent economists were expecting.

The latest inflation figures came on the back of poorer-than-expected Chinese manufacturing data for December.

Economic data from the world’s second-largest economy has been closely watched by investors for signs of damage inflicted by the trade war between Beijing and Washington. To stimulate a slowing economy, the Chinese government has taken measures such as reducing the reserves required to be held by banks in the country to encourage lending.

“There is clearly a big slowdown … (in) the Chinese economy and the measures so far are not enough to revive (it). At best, they could stabilize the situation probably in the second half, and we’re still at the beginning of the first quarter,” David Gaud, chief investment officer of Asia at Pictet Wealth Management, told CNBC’s “Street Signs” on Thursday.

“Whatever they do right now, it’s gonna be really tough and the first quarter is going to be challenging,” said Gaud.


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: eustance huang
Keywords: news, cnbc, companies, lower, miss, expectations, investors, economy, came, trade, inflation, close, markets, data, asia, chinese, watched, war, china


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China’s slowing inflation leaves ‘plenty of room’ for central bank to cut rates, analyst says

“If anything, cooling factory gate inflation will strengthen the case for the central bank to do more to ease financial pressure on industrial firms including by cutting benchmark lending rates.” “Rapidly falling inflation, especially factory-gate PPI inflation, is further evidence that China’s economy is slowing at a worrying pace,” Nomura economists wrote in a note on Thursday. The slower inflation will give Beijing “plenty of room to loosen (monetary) policy,” said Evans-Pritchard in a note o


“If anything, cooling factory gate inflation will strengthen the case for the central bank to do more to ease financial pressure on industrial firms including by cutting benchmark lending rates.” “Rapidly falling inflation, especially factory-gate PPI inflation, is further evidence that China’s economy is slowing at a worrying pace,” Nomura economists wrote in a note on Thursday. The slower inflation will give Beijing “plenty of room to loosen (monetary) policy,” said Evans-Pritchard in a note o
China’s slowing inflation leaves ‘plenty of room’ for central bank to cut rates, analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: huileng tan, chinafotopress, getty images, – julian evans-pritchard, senior china economist at capital economics
Keywords: news, cnbc, companies, note, chinas, inflation, strengthen, cut, room, data, rose, plenty, nomura, pressure, rates, ppi, leaves, central, bank, beijing, slowing


China's slowing inflation leaves 'plenty of room' for central bank to cut rates, analyst says

“If anything, cooling factory gate inflation will strengthen the case for the central bank to do more to ease financial pressure on industrial firms including by cutting benchmark lending rates.”

China’s Consumer Price Index — a gauge of prices for goods and services — rose 1.9 percent on year in December, lower than economists’ expectations of a 2.1 percent growth, according to a Reuters’ poll. The CPI rose 2.2 percent in November.

The latest data brought China’s PPI for January to December 2018 a rise of 3.5 percent, while full-year CPI was up 2.1 percent — below Beijing’s target of 3 percent in consumer inflation for the entire year.

“Rapidly falling inflation, especially factory-gate PPI inflation, is further evidence that China’s economy is slowing at a worrying pace,” Nomura economists wrote in a note on Thursday.

The slump in producer inflation suggests corporate earnings would fall in the coming months, they added.

Analysts say the latest data could lead to further easing measures by the government as it seeks to stimulate the economy.

The slower inflation will give Beijing “plenty of room to loosen (monetary) policy,” said Evans-Pritchard in a note on Thursday. “If anything, cooling factory gate inflation will strengthen the case for the central bank to do more to ease financial pressure on industrial firms including by cutting benchmark lending rates.”

“Falling inflation leaves more room for Beijing to roll out more aggressive policies to bolster growth and could lead to lower interbank rates and bond yields,” the Nomura analysts added in their note.

Economic data from the world’s second-largest economy are being closely watched for signs of damage inflicted by the trade war between Washington and Beijing.


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: huileng tan, chinafotopress, getty images, – julian evans-pritchard, senior china economist at capital economics
Keywords: news, cnbc, companies, note, chinas, inflation, strengthen, cut, room, data, rose, plenty, nomura, pressure, rates, ppi, leaves, central, bank, beijing, slowing


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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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Cramer Remix: Fed Chair Jay Powell—this message is for you

Let’s keep the strength going by waiting a little and not being too judgmental about rate hikes like some of your colleagues,” Cramer said. The “Mad Money” host reiterated his distaste in some Fed officials’ tendency to stick to traditional metrics when gauging how the economy is doing. “How can you claim to be data-dependent if you’ve made up your mind before you see the data that you need one or two more rate hikes to get back to normal?” The Fed, whose mission it is to keep inflation at bay w


Let’s keep the strength going by waiting a little and not being too judgmental about rate hikes like some of your colleagues,” Cramer said. The “Mad Money” host reiterated his distaste in some Fed officials’ tendency to stick to traditional metrics when gauging how the economy is doing. “How can you claim to be data-dependent if you’ve made up your mind before you see the data that you need one or two more rate hikes to get back to normal?” The Fed, whose mission it is to keep inflation at bay w
Cramer Remix: Fed Chair Jay Powell—this message is for you Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: elizabeth gurdus, mark wilson, getty images, saul loeb, afp, spencer platt
Keywords: news, cnbc, companies, fed, hikes, rate, chair, inflation, patient, jay, powellthis, cramer, normal, powell, message, designed, remix, economy


Cramer Remix: Fed Chair Jay Powell—this message is for you

Federal Reserve Chair Jerome Powell just gave the stock market and the U.S. economy exactly what they needed to continue the steady growth they’ve seen in the last several years, CNBC’s Jim Cramer said Friday.

In a group interview with former Fed leaders Ben Bernanke and Janet Yellen, Powell said Friday that he would be “patient” with the central bank’s interest rate policies in the year ahead. The remark sent stocks soaring, with the Dow tacking on some 800 points intraday.

“Memo to Powell: keep listening. Be patient. Enjoy the employment gains. Let’s keep the strength going by waiting a little and not being too judgmental about rate hikes like some of your colleagues,” Cramer said.

The “Mad Money” host reiterated his distaste in some Fed officials’ tendency to stick to traditional metrics when gauging how the economy is doing.

“How can you claim to be data-dependent if you’ve made up your mind before you see the data that you need one or two more rate hikes to get back to normal?” he asked. “Normal is where the data says you should go. Normal is the natural progression of jobs being created without a lot of inflation. Normal is not a percent.”

The Fed, whose mission it is to keep inflation at bay while keeping people employed, will eventually have to reconsider what it sees as “normal” as a result of technology, Cramer continued.

“Every device is … designed to lay people off. Every software program you have is designed to let companies hire fewer people, because people are so expensive. Every invention of any note is about taking a job that’s done by 10 people and making it so it’s only two people, and they can do it better,” he said.

To read more about the Fed’s reversal, click here.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: elizabeth gurdus, mark wilson, getty images, saul loeb, afp, spencer platt
Keywords: news, cnbc, companies, fed, hikes, rate, chair, inflation, patient, jay, powellthis, cramer, normal, powell, message, designed, remix, economy


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Billionaire Ray Dalio shares a 3-step formula for anyone to start investing

Keeping all of your cash in a savings account isn’t a smart decision, Dalio points out, because of the value depleting effects of inflation. Meanwhile, the consumer price index — which measures inflation (the rising costs of goods and services) — rose 2.7 percent in the past year. “That’s the worst thing you could do because it is the surest tax on your money,” Dalio says. “Know how to diversify into non-cash assets like stocks, bonds and real estate,” Dalio says. “When you look at most portfoli


Keeping all of your cash in a savings account isn’t a smart decision, Dalio points out, because of the value depleting effects of inflation. Meanwhile, the consumer price index — which measures inflation (the rising costs of goods and services) — rose 2.7 percent in the past year. “That’s the worst thing you could do because it is the surest tax on your money,” Dalio says. “Know how to diversify into non-cash assets like stocks, bonds and real estate,” Dalio says. “When you look at most portfoli
Billionaire Ray Dalio shares a 3-step formula for anyone to start investing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: ali montag, j countess, getty images
Keywords: news, cnbc, companies, formula, times, value, ray, billionaire, portfolio, shares, start, stocks, money, dalio, rising, savings, bonds, investing, 3step, inflation


Billionaire Ray Dalio shares a 3-step formula for anyone to start investing

The next step is to decide what to do with that money.

Keeping all of your cash in a savings account isn’t a smart decision, Dalio points out, because of the value depleting effects of inflation. Right now, the national average interest rate for a savings account is only 0.10 percent, according to data from Bankrate, meaning you’re only earning a few cents for every dollar you save. Meanwhile, the consumer price index — which measures inflation (the rising costs of goods and services) — rose 2.7 percent in the past year.

“That’s the worst thing you could do because it is the surest tax on your money,” Dalio says. “You will bleed slowly to death because the after-tax returns are lower than inflation by a little per year.”

In order to prevent your savings from losing their value, the best choice is to invest your money into a diversified portfolio of assets that increase in value faster than inflation. “Know how to diversify into non-cash assets like stocks, bonds and real estate,” Dalio says.

A typical portfolio might be split between 50 percent bonds and 50 percent stocks, but Dalio argues that isn’t really diversified in “Money: Master the Game” by Tony Robbins.

“When you look at most portfolios, they have a very strong bias to do well in good times and bad in bad times,” Dalio says in the book. To avoid your portfolio simply rising and falling with the market, his advice is to spread out and balance the risks of each investment.

Here’s his breakdown for what a well-diversified portfolio might look like, according to the book: 30 percent allocated to stocks, 40 percent to long-term U.S. bonds, 15 percent to intermediate U.S. bonds, 7.5 percent to gold and 7.5 percent to other commodities. (The portfolio does need to be rebalanced annually, he adds.)

That mix is intended to do well under any condition, whether the economy is growing or shrinking, or whether inflation is rising or falling, he explains.


Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: ali montag, j countess, getty images
Keywords: news, cnbc, companies, formula, times, value, ray, billionaire, portfolio, shares, start, stocks, money, dalio, rising, savings, bonds, investing, 3step, inflation


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Swedish central bank hikes rates for first time since 2011

“As inflation and inflation expectations have become established at around 2 per cent, the need for a highly expansionary monetary policy has decreased slightly,” the central bank said in a statement. “The forecast for the repo rate indicates that the next rate rise will probably occur during the second half of 2019.” The central bank hiked its repo rate by 25 basis points to -0.25 percent. A Reuters poll had shown two thirds of analysts expecting the Riksbank to keep rates unchanged, with the r


“As inflation and inflation expectations have become established at around 2 per cent, the need for a highly expansionary monetary policy has decreased slightly,” the central bank said in a statement. “The forecast for the repo rate indicates that the next rate rise will probably occur during the second half of 2019.” The central bank hiked its repo rate by 25 basis points to -0.25 percent. A Reuters poll had shown two thirds of analysts expecting the Riksbank to keep rates unchanged, with the r
Swedish central bank hikes rates for first time since 2011 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-20
Keywords: news, cnbc, companies, inflation, rate, hikes, unchanged, bank, dollar, swedish, 2011, repo, rates, currency, central, crowns


Swedish central bank hikes rates for first time since 2011

Sweden’s central bank raised rates for the first time in more than seven years on Thursday, saying inflation was now back on track but that it needed to go more slowly with rate hikes in the period ahead.

“As inflation and inflation expectations have become established at around 2 per cent, the need for a highly expansionary monetary policy has decreased slightly,” the central bank said in a statement.

“The forecast for the repo rate indicates that the next rate rise will probably occur during the second half of 2019.”

The central bank hiked its repo rate by 25 basis points to -0.25 percent. A Reuters poll had shown two thirds of analysts expecting the Riksbank to keep rates unchanged, with the remainder predicting a tightening.

Sweden’s currency jumped more than one percent against the dollar on Thursday after the central bank rate decision.

In early London trading, the crown rallied 1.4 percent to 8.9635 crowns against the dollar and as much as 0.8 percent to 10.2460 crowns against the single currency.


Company: cnbc, Activity: cnbc, Date: 2018-12-20
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Treasury Secretary Steve Mnuchin says market plunge on Fed rate hike ‘is completely overblown’

“The market was clearly expecting them to have a rate hike. That was priced into the bond market and into the Fed funds market,” Mnuchin said. But Mnuchin said he was looking beyond the prediction of two more rate hikes, and pointed to the interest rate forecasts outlined by Fed officials in its “dot plot.” We’ve seen inflation come down, we’ve seen the oil markets come down. So I think you’re looking at a very attractive investment market for the next year,” he said.


“The market was clearly expecting them to have a rate hike. That was priced into the bond market and into the Fed funds market,” Mnuchin said. But Mnuchin said he was looking beyond the prediction of two more rate hikes, and pointed to the interest rate forecasts outlined by Fed officials in its “dot plot.” We’ve seen inflation come down, we’ve seen the oil markets come down. So I think you’re looking at a very attractive investment market for the next year,” he said.
Treasury Secretary Steve Mnuchin says market plunge on Fed rate hike ‘is completely overblown’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: tucker higgins, al drago, bloomberg, getty images, jim watson, afp
Keywords: news, cnbc, companies, rates, hike, mnuchin, fed, secretary, rate, weve, steve, treasury, seen, market, overblown, inflation, pointed, plunge, think


Treasury Secretary Steve Mnuchin says market plunge on Fed rate hike 'is completely overblown'

“The market was clearly expecting them to have a rate hike. That was priced into the bond market and into the Fed funds market,” Mnuchin said. “I think that the market was disappointed in the chairman’s comments.”

But Mnuchin said he was looking beyond the prediction of two more rate hikes, and pointed to the interest rate forecasts outlined by Fed officials in its “dot plot.”

“There’s clearly people on the committee who think that they don’t need to raise rates much here, and I think you’ve got to put this in perspective. We’ve had 5 and 6 percent interest rates. The Fed has said they are close to done. [Powell] said they are data dependent,” Mnuchin said. “I think the market has overreacted, and U.S. equities are a tremendous value.”

Mnuchin said he was “still optimistic” that the U.S. economy would grow at 3 percent in 2019, but he pointed to the Fed’s projection on inflation as “really the more important issue” for the stock market.

“The Fed lowered their expectation for inflation, which is a good thing. We’ve seen inflation come down, we’ve seen the oil markets come down. So I think you’re looking at a very attractive investment market for the next year,” he said.


Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: tucker higgins, al drago, bloomberg, getty images, jim watson, afp
Keywords: news, cnbc, companies, rates, hike, mnuchin, fed, secretary, rate, weve, steve, treasury, seen, market, overblown, inflation, pointed, plunge, think


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Cramer: Fed chief Jerome Powell is Trump’s worst re-election nightmare

CNBC’s Jim Cramer went off on Federal Reserve Chairman Jerome Powell, saying President Donald Trump is right to worry about a possible recession in 2019 as a result of the central bank chief’s rate hikes. “The president is spot on,” Cramer said on CNBC’s “Mad Money” on Wednesday evening, after the Powell Fed raised rates for the fourth time in 2018 and projected two more increases next year. “The Fed is perfectly happy to gradually strangle the economy, the U.S. economy, in order to stamp out in


CNBC’s Jim Cramer went off on Federal Reserve Chairman Jerome Powell, saying President Donald Trump is right to worry about a possible recession in 2019 as a result of the central bank chief’s rate hikes. “The president is spot on,” Cramer said on CNBC’s “Mad Money” on Wednesday evening, after the Powell Fed raised rates for the fourth time in 2018 and projected two more increases next year. “The Fed is perfectly happy to gradually strangle the economy, the U.S. economy, in order to stamp out in
Cramer: Fed chief Jerome Powell is Trump’s worst re-election nightmare Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: matthew j belvedere, jim watson, afp, getty images
Keywords: news, cnbc, companies, fed, cramer, president, worry, rate, jerome, chief, reelection, cnbcs, trumps, inflation, saying, nightmare, economy, worst, powell


Cramer: Fed chief Jerome Powell is Trump's worst re-election nightmare

CNBC’s Jim Cramer went off on Federal Reserve Chairman Jerome Powell, saying President Donald Trump is right to worry about a possible recession in 2019 as a result of the central bank chief’s rate hikes.

“The president is spot on,” Cramer said on CNBC’s “Mad Money” on Wednesday evening, after the Powell Fed raised rates for the fourth time in 2018 and projected two more increases next year. “The Fed is perfectly happy to gradually strangle the economy, the U.S. economy, in order to stamp out inflation, or the potential of inflation. And that’s bad news for corporate earnings” and the stock market.

Cramer has been saying for months there’s no need to worry about inflation since it’s not problematically high, and that the economy is showing pockets of weakness. Taken together, those factors indicate the Fed should pause rate hike, he has argued.

“If I were running Trump’s re-election campaign, Jay Powell would be my worst nightmare,” said Cramer, who, like the president, has been calling on Powell to stop. Powell apologists, “they must have no sense or empathy for what’s about to happen to the working person in this country,” Cramer added.


Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: matthew j belvedere, jim watson, afp, getty images
Keywords: news, cnbc, companies, fed, cramer, president, worry, rate, jerome, chief, reelection, cnbcs, trumps, inflation, saying, nightmare, economy, worst, powell


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