The president shoots back at Leon Cooperman: ‘He’s doing very well with Trump’

President Donald Trump offered some advice Friday for billionaire Leon Cooperman, who said earlier this week that Trump shouldn’t run for reelection if he doesn’t change his behavior. “Tell Leon, who I don’t know, congratulations because he’s doing very well with Trump,” the president said during a scrum with reporters Friday and in response to a question from CNBC’s Eamon Javers. In a CNBC interview Monday, Cooperman criticized Trump for his conduct that the Omega Advisors founder said is divid


President Donald Trump offered some advice Friday for billionaire Leon Cooperman, who said earlier this week that Trump shouldn’t run for reelection if he doesn’t change his behavior.
“Tell Leon, who I don’t know, congratulations because he’s doing very well with Trump,” the president said during a scrum with reporters Friday and in response to a question from CNBC’s Eamon Javers.
In a CNBC interview Monday, Cooperman criticized Trump for his conduct that the Omega Advisors founder said is divid
The president shoots back at Leon Cooperman: ‘He’s doing very well with Trump’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: jeff cox
Keywords: news, cnbc, companies, leon, president, change, hes, doing, know, cooperman, run, york, trump, shoots, billionaire, bloomberg


The president shoots back at Leon Cooperman: 'He's doing very well with Trump'

President Donald Trump offered some advice Friday for billionaire Leon Cooperman, who said earlier this week that Trump shouldn’t run for reelection if he doesn’t change his behavior.

“Tell Leon, who I don’t know, congratulations because he’s doing very well with Trump,” the president said during a scrum with reporters Friday and in response to a question from CNBC’s Eamon Javers.

In a CNBC interview Monday, Cooperman criticized Trump for his conduct that the Omega Advisors founder said is dividing America. Later in the day Friday, Cooperman said he would be supporting fellow billionaire and former New York City Mayor Michael Bloomberg for president, though Bloomberg has not yet declared an official candidacy.

“He has to become a president for the entire country and not just his base. So if I was him, if I’m not prepared to change my behavior, I would take a victory lap and not run again,” Cooperman said of Trump.

The president said he has seen Cooperman but does not know him, adding that he is entitled to “his own view” though the economy has done well under Trump’s guidance.


Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: jeff cox
Keywords: news, cnbc, companies, leon, president, change, hes, doing, know, cooperman, run, york, trump, shoots, billionaire, bloomberg


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Fed Governor Lael Brainard says the central bank needs to guard against climate change

Along with all of the other things it must consider, the Federal Reserve needs to take into account climate change when formulating monetary policy, Fed Governor Lael Brainard said Friday. Such assessments could help determine where the Fed views the long-run “neutral” interest rate that is neither stimulative nor restrictive to growth. Should fallout from climate change intensify, it could cause asset valuations to be mispriced in a way she compared to real estate leading up to the financial cr


Along with all of the other things it must consider, the Federal Reserve needs to take into account climate change when formulating monetary policy, Fed Governor Lael Brainard said Friday.
Such assessments could help determine where the Fed views the long-run “neutral” interest rate that is neither stimulative nor restrictive to growth.
Should fallout from climate change intensify, it could cause asset valuations to be mispriced in a way she compared to real estate leading up to the financial cr
Fed Governor Lael Brainard says the central bank needs to guard against climate change Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: jeff cox
Keywords: news, cnbc, companies, fed, guard, policy, climate, change, brainard, effects, central, federal, bank, governor, monetary, financial, lael, interest, needs


Fed Governor Lael Brainard says the central bank needs to guard against climate change

Along with all of the other things it must consider, the Federal Reserve needs to take into account climate change when formulating monetary policy, Fed Governor Lael Brainard said Friday.

The issue could have impact on determining the proper level of interest rates and cause systemic financial damage in a way similar to what happened during the financial crisis, the central bank official said during a speech in San Francisco.

“Increasingly, it will be important for the Federal Reserve to take into account the effects of climate change and associated policies in setting monetary policy to achieve our objectives of maximum employment and price stability,” Brainard said in prepared remarks.

Among the considerations for the Fed would be whether the impact of climate change-related events such as hurricanes, wildfires and floods are temporary or long lasting. Such assessments could help determine where the Fed views the long-run “neutral” interest rate that is neither stimulative nor restrictive to growth.

“Just on its own, the large amount of uncertainty regarding climate-related events and policies could hold back investment and economic activity,” Brainard said.

Should fallout from climate change intensify, it could cause asset valuations to be mispriced in a way she compared to real estate leading up to the financial crisis.

“For example, if prices of properties do not accurately reflect climate-related risks, a sudden correction could result in losses to financial institutions, which could in turn reduce lending in the economy. The associated declines in wealth could amplify the effects on economic activity, which could have further knock-on effects on financial markets,” Brainard said.

She added that banks need to be prepared against such shifts and be able to identify the risks.

Brainard’s speech did not otherwise address where she feels monetary policy should be. The Federal Open Market Committee last week approved its third interest rate cut this year, but officials indicated that it likely will be the last for a while.


Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: jeff cox
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Elon Musk gloats to hedge fund adversary over Tesla surge, calling David Einhorn ‘Mr. Unicorn’

Tesla founder Elon Musk has fired back at one of his biggest hedge fund adversaries, ridiculing Greenlight Capital founder David Einhorn in a letter shared on Twitter for his position against the electric car maker. Musk addresses Einhorn as “Mr. Unicorn” and himself as “Treelon,” pointing out the losses that Greenlight has suffered due to its short position against Tesla. (Musk agreed last month to donate 1 million trees to the Arbor Day Foundation last month.) The stock is up 7.1% this week an


Tesla founder Elon Musk has fired back at one of his biggest hedge fund adversaries, ridiculing Greenlight Capital founder David Einhorn in a letter shared on Twitter for his position against the electric car maker.
Musk addresses Einhorn as “Mr. Unicorn” and himself as “Treelon,” pointing out the losses that Greenlight has suffered due to its short position against Tesla.
(Musk agreed last month to donate 1 million trees to the Arbor Day Foundation last month.)
The stock is up 7.1% this week an
Elon Musk gloats to hedge fund adversary over Tesla surge, calling David Einhorn ‘Mr. Unicorn’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: jeff cox
Keywords: news, cnbc, companies, spacex, position, elon, greenlight, gloats, founder, fund, musk, suffered, space, einhorn, unicorn, surge, month, losses, tesla, hedge


Elon Musk gloats to hedge fund adversary over Tesla surge, calling David Einhorn 'Mr. Unicorn'

SpaceX founder Elon Musk reacts at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, March 2, 2019.

Tesla founder Elon Musk has fired back at one of his biggest hedge fund adversaries, ridiculing Greenlight Capital founder David Einhorn in a letter shared on Twitter for his position against the electric car maker.

Musk addresses Einhorn as “Mr. Unicorn” and himself as “Treelon,” pointing out the losses that Greenlight has suffered due to its short position against Tesla. (Musk agreed last month to donate 1 million trees to the Arbor Day Foundation last month.)

While the company’s shares are barely positive for the year, they’ve been on a tear lately since the company crushed third-quarter earnings estimates more than two weeks ago. The stock is up 7.1% this week and 39.8% over the past month, leading Musk to take a victory lap. He accused Einhorn of making “numerous false allegations against Tesla.”

“It is understandable that you wish to save face with your investors, given the losses you suffered from Tesla’s successful third quarter, especially since you’ve had several down years in performance and a sharp drop in assets under management from $15 billion to $5 billion,” Musk wrote. “You have our sympathies.”

CNBC has reached out to Greenlight for comment.


Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: jeff cox
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The Fed’s monetary juice has tied directly to the rise in stocks: ‘Here we go again’

The results: a $175 billion expansion of the Fed’s balance sheet to $4.07 trillion, representing growth of 4.5% since the operations began. The operations this year, as stated by the Fed, are specifically to stabilize short-term rates, though the process is identical. Financial imbalancesQE and the latest round of stimulus are “absolutely” similar, said Lisa Shalett, chief investment officer at Morgan Stanley Asset Management. She cited the since-abandoned WeWorks initial public offering as one


The results: a $175 billion expansion of the Fed’s balance sheet to $4.07 trillion, representing growth of 4.5% since the operations began.
The operations this year, as stated by the Fed, are specifically to stabilize short-term rates, though the process is identical.
Financial imbalancesQE and the latest round of stimulus are “absolutely” similar, said Lisa Shalett, chief investment officer at Morgan Stanley Asset Management.
She cited the since-abandoned WeWorks initial public offering as one
The Fed’s monetary juice has tied directly to the rise in stocks: ‘Here we go again’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-07  Authors: jeff cox
Keywords: news, cnbc, companies, juice, central, system, world, monetary, tied, pushed, operations, financial, fed, assets, rise, market, feds, directly, stocks, money


The Fed's monetary juice has tied directly to the rise in stocks: 'Here we go again'

Financial markets have seen this story before: The Federal Reserve rides in with piles of freshly minted digitized money that helps send the prices of stocks and other assets lurching forward. But this isn’t 2009. Instead, it’s 2019, and once again the central bank, whether by intention or coincidence, has seen its efforts to keep the financial system running smoothly end up as a bonanza for Wall Street, where the decade-long bull market has taken another leg higher in step with a Fed liquidity effort.

Since a mid-September flare-up in the repo market, where banks go for overnight financing, the Fed has been injecting billions into the markets, buying up mostly short-term Treasury bills in an effort, ostensibly, to keep its benchmark funds interest rate within its targeted range, currently at 1.5% to 1.75%. The results: a $175 billion expansion of the Fed’s balance sheet to $4.07 trillion, representing growth of 4.5% since the operations began. During that time, the S&P 500 has risen just shy of 4%. Coincidence? Maybe. After all, the Fed has stressed repeatedly that the recent bond-buying operations are not akin to the three rounds of quantitative easing that happened during and after the financial crisis and accompanying Great Recession. Under QE, the Fed credited primary dealers with funds in exchange for high-quality assets like Treasury debt, in an effort to loosen financial conditions, lower borrowing rates and direct money to stocks and corporate bonds. The operations this year, as stated by the Fed, are specifically to stabilize short-term rates, though the process is identical. Market participants see stark similarities not just in the operation — but also in its effects.

Financial imbalances

QE and the latest round of stimulus are “absolutely” similar, said Lisa Shalett, chief investment officer at Morgan Stanley Asset Management. “Financial conditions are extraordinarily loose and accommodative. One of the things that the Fed balance sheet liquidity has done has also been to allow the U.S. dollar to weaken for really the first time in about two years. These are things that are definitely contributing to this move in the market.” Indeed, the Goldman Sachs Financial Conditions Index, which Fed officials follow closely, is around its lows of the year, due in large part to rising stock prices and falling bond yields and credit spreads. Shalett said the Fed’s moves have also caused financial imbalances elsewhere, a key concern for central bank officials who have pushed back against the recent interest rate cuts and looser policy. She cited the since-abandoned WeWorks initial public offering as one example of money looking for financial assets rather than being put back into the real economy. “This really speaks to the idea that once again we’re on the brink of potentially being in this bubble, where valuations are about the story and the narrative and not about the cash flow and profits,” she said. “You would think we would have learned this lesson before. But here we go again.” Wall Street took notice earlier this week when hedge fund king Ray Dalio of Bridgewater Associates penned his latest missive for LinkedIn, this one titled “The World Has Gone Mad and the System Is Broken.” In the essay, the head of the largest hedge fund in the world noted that investors are having money “pushed on them by central banks that are buying financial assets in their futile attempts to push economic activity and inflation up. The reason that this money that is being pushed on investors isn’t pushing growth and inflation much higher is that the investors who are getting it want to invest it rather than spend it.” Dalio said the active role that central banks are playing in the financial system is creating wealth disparity because the money earned by those at the top is not flowing into those further down the ladder. “Because the ‘trickle-down’ process of having money at the top trickle down to workers and others by improving their earnings and creditworthiness is not working, the system of making capitalism work well for most people is broken,” he wrote. “This set of circumstances is unsustainable and certainly can no longer be pushed as it has been pushed since 2008. That is why I believe that the world is approaching a big paradigm shift.”

Another buyback boom


Company: cnbc, Activity: cnbc, Date: 2019-11-07  Authors: jeff cox
Keywords: news, cnbc, companies, juice, central, system, world, monetary, tied, pushed, operations, financial, fed, assets, rise, market, feds, directly, stocks, money


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The Fed is still faltering on inflation, and one official is calling for ‘aggressive’ action

The expected inflation rate a year from now is 2.3%, according to the New York Fed’s survey of consumer expectations released this week. Fed officials consider a bit of inflation good for the economy as it represents rising living standards. Evans wants Fed to ‘be aggressive’Some central bank leaders have been pushing for a more active approach. “It is very difficult to generate inflation in the current environment,” Chicago Fed President Charles Evans said during a talk Wednesday in New York at


The expected inflation rate a year from now is 2.3%, according to the New York Fed’s survey of consumer expectations released this week.
Fed officials consider a bit of inflation good for the economy as it represents rising living standards.
Evans wants Fed to ‘be aggressive’Some central bank leaders have been pushing for a more active approach.
“It is very difficult to generate inflation in the current environment,” Chicago Fed President Charles Evans said during a talk Wednesday in New York at
The Fed is still faltering on inflation, and one official is calling for ‘aggressive’ action Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-06  Authors: jeff cox
Keywords: news, cnbc, companies, target, little, calling, inflation, action, level, faltering, fomc, fed, aggressive, policy, evans, feds, york, official


The Fed is still faltering on inflation, and one official is calling for 'aggressive' action

The Federal Reserve’s more than decade-long quest to generate a healthy level of inflation continues to falter, even with the central bank’s easing turn in 2019 that is targeted specifically at the issue. Not only has the Fed missed its 2% target for all of this year but it also now faces fading hopes that anything will change for at least the next several years. The expected inflation rate a year from now is 2.3%, according to the New York Fed’s survey of consumer expectations released this week. While that number is technically ahead of the Fed’s goal, it has consistently overshot the actual level throughout its existence, often by a full percentage point or more.

October’s reading represented a decline of 0.2 percent point to 2.3%, the lowest level ever in a survey that goes back to June 2013. The three-year expectation is for 2.4% inflation. Fed officials consider a bit of inflation good for the economy as it represents rising living standards. In their moves to construct policy during and after the financial crisis, they arrived at the 2% target though they’ve only surpassed it once, in 2011, using the personal consumption expenditures index less food and energy prices as a guide. The most recent reading showed the PCE deflator rising at just a 1.7% pace in September.

Evans wants Fed to ‘be aggressive’

Some central bank leaders have been pushing for a more active approach. “It is very difficult to generate inflation in the current environment,” Chicago Fed President Charles Evans said during a talk Wednesday in New York at the Council on Foreign Relations. “We need to work hard to understand this and be aggressive.” Evans endorses an approach in which the Fed allows inflation to run over the 2% threshold for a while — standing behind the Federal Open Market Committee’s endorsement of a “symmetric” objective where inflation may run a little hotter or a little colder than the target for a period of time. “It would be good if the FOMC clarified that a little bit in some of our discussions about our long-run strategy,” he said. Making the goal a firm 2%, he added, might send a wrong message about the Fed’s intentions that it might start to tighten policy once inflation gets closer to that number. “If you limit yourself, if you say your objective is 2% but you really act as if it’s a ceiling, that reduces the monetary policy space when you need to provide more monetary policy accommodation during a downturn,” Evans said. Evans is a voting member of the FOMC and has approved of all three rate cuts this year. The committee has cited low inflation as a factor in each of the moves. Minneapolis Fed President Neel Kashkari weighed in on the issue during a CNBC interview Monday, saying the FOMC should announce that it will hold off on hikes until inflation hits 2%.

The stock market likes it


Company: cnbc, Activity: cnbc, Date: 2019-11-06  Authors: jeff cox
Keywords: news, cnbc, companies, target, little, calling, inflation, action, level, faltering, fomc, fed, aggressive, policy, evans, feds, york, official


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Job openings hit lowest level in 18 months but are still well ahead of total vacancies

Job openings hit their lowest level in 18 months in September as the labor market continued to tighten, according to a Labor Department release Tuesday. Total vacancies fell to 7.02 million for the month, a decline of 277,000 from August, the Jobs Opening and Labor Turnover Survey showed. The jobs openings rate fell to 4.4% from 4.6% in August. However, the total number of job openings still is well ahead of the reported 5.8 million people looking for work during the month. Hires increased by 50


Job openings hit their lowest level in 18 months in September as the labor market continued to tighten, according to a Labor Department release Tuesday.
Total vacancies fell to 7.02 million for the month, a decline of 277,000 from August, the Jobs Opening and Labor Turnover Survey showed.
The jobs openings rate fell to 4.4% from 4.6% in August.
However, the total number of job openings still is well ahead of the reported 5.8 million people looking for work during the month.
Hires increased by 50
Job openings hit lowest level in 18 months but are still well ahead of total vacancies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox
Keywords: news, cnbc, companies, vacancies, ahead, hit, month, jobs, million, increased, lowest, total, openings, labor, fell, rate, job, level, months


Job openings hit lowest level in 18 months but are still well ahead of total vacancies

Job openings hit their lowest level in 18 months in September as the labor market continued to tighten, according to a Labor Department release Tuesday.

Total vacancies fell to 7.02 million for the month, a decline of 277,000 from August, the Jobs Opening and Labor Turnover Survey showed. Though it lags other releases by a month, the so-called JOLTS report is closely watched by Federal Reserve officials as an indicator of labor market health.

The jobs openings rate fell to 4.4% from 4.6% in August.

However, the total number of job openings still is well ahead of the reported 5.8 million people looking for work during the month. The last vacancies were below 7 million was March 2018.

The quits rate, a measure of confidence and mobility that gauges how many workers voluntarily left their jobs, edged lower to 2.3% for the month as the total fell by 103,000 to 3.5 million.

Hires increased by 50,000 to 5.93 million, while total separations increased by 76,000 to 5.81 million. The hires rate remained unchanged at 3.9% while the separations rate also held at 3.8%.

Nonfarm payrolls overall increased by 180,000 in September while the total employment level rose to 158.3 million and the unemployment rate dropped to 3.5%. Data released Friday showed payroll growth of 128,000 in October, with the jobless rate edging up to 3.6%.


Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox
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The trade deficit got smaller in September as the US and China work toward tariff truce

On a year-over-year basis, the current trade deficit is 5.4% higher than the same period in 2018. With the two sides working toward an agreement, the deficit with China fell 3.1% to $28 billion for the month. Overall, exports declined $1.8 billion to $206 billion while imports also were down, dropping $4.4 billion to $258.4 billion. Foods, feeds and beverage exports fell $1.5 billion due largely to a $1 billion drop in soybeans. On the import side, consumer goods fell $2.5 billion as cellphones


On a year-over-year basis, the current trade deficit is 5.4% higher than the same period in 2018.
With the two sides working toward an agreement, the deficit with China fell 3.1% to $28 billion for the month.
Overall, exports declined $1.8 billion to $206 billion while imports also were down, dropping $4.4 billion to $258.4 billion.
Foods, feeds and beverage exports fell $1.5 billion due largely to a $1 billion drop in soybeans.
On the import side, consumer goods fell $2.5 billion as cellphones
The trade deficit got smaller in September as the US and China work toward tariff truce Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox, yun li
Keywords: news, cnbc, companies, truce, smaller, china, million, imports, deficit, work, billion, goods, declined, continues, trade, tariff, fell, exports


The trade deficit got smaller in September as the US and China work toward tariff truce

The U.S. trade deficit with its global partners contracted to $52.5 billion in September as the White House continued its efforts to close the gap in goods and services, according to a Commerce Department report Tuesday.

The deficit was slightly above expectations of $52.2 billion, according to economists surveyed by Dow Jones. August’s shortfall was just over $55 billion.

As the administration continues its efforts to close the first phase of a tariff deal with China, the trade balance remains 13.1% higher from the $46.4 billion level when President Donald Trump took office. Consumers continue to demand foreign goods amid a decadelong economic expansion.

On a year-over-year basis, the current trade deficit is 5.4% higher than the same period in 2018.

With the two sides working toward an agreement, the deficit with China fell 3.1% to $28 billion for the month.

Overall, exports declined $1.8 billion to $206 billion while imports also were down, dropping $4.4 billion to $258.4 billion. The U.S. recorded its first petroleum surplus, of $252 million, since 1978 as the nation continues to push its energy output.

Foods, feeds and beverage exports fell $1.5 billion due largely to a $1 billion drop in soybeans. Automotive exports also declined by $1 billion and capital goods increased by $800 million thanks to a collective $1.3 billion rise in aircraft-related products.

On the import side, consumer goods fell $2.5 billion as cellphones and other household goods dropped by $800 million and toys games and sporting goods declined by $600 million. Capital goods imports were off $1.1 billion on a $600 million reduction in semiconductors. Automotive imports were down $1.1 billion.

By nation and region, the largest surplus was with South and Central America at $5 billion, while the biggest deficit after China was with the European Union at $15.7 billion. The U.S. also continues to run deficits with Mexico ($9.1 billion), Japan ($5.9 billion) and Germany ($5 billion).

Get the market reaction here.


Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox, yun li
Keywords: news, cnbc, companies, truce, smaller, china, million, imports, deficit, work, billion, goods, declined, continues, trade, tariff, fell, exports


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SEC urged to end the ‘issuer pay’ bond ratings model once tied to the financial crisis

A bond market arrangement tied closely to the financial crisis that has nonetheless persisted should be halted, according to testimony this week before federal regulators. The “issuer pay” business model allows for bond issuers to pay the firms that provide ratings. During the financial crisis, ratings from the three major agencies — Moody’s, S&P and Fitch — came under scrutiny for assigning top grades to risky mortgages that ultimately collapsed. An executive chairing the subcommittee told the


A bond market arrangement tied closely to the financial crisis that has nonetheless persisted should be halted, according to testimony this week before federal regulators.
The “issuer pay” business model allows for bond issuers to pay the firms that provide ratings.
During the financial crisis, ratings from the three major agencies — Moody’s, S&P and Fitch — came under scrutiny for assigning top grades to risky mortgages that ultimately collapsed.
An executive chairing the subcommittee told the
SEC urged to end the ‘issuer pay’ bond ratings model once tied to the financial crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox
Keywords: news, cnbc, companies, told, subcommittee, crisis, journal, ratings, agencies, according, issuer, bond, end, urged, pay, sec, model, tied, financial


SEC urged to end the 'issuer pay' bond ratings model once tied to the financial crisis

A bond market arrangement tied closely to the financial crisis that has nonetheless persisted should be halted, according to testimony this week before federal regulators.

The “issuer pay” business model allows for bond issuers to pay the firms that provide ratings. During the financial crisis, ratings from the three major agencies — Moody’s, S&P and Fitch — came under scrutiny for assigning top grades to risky mortgages that ultimately collapsed.

In a hearing Monday before the Securities and Exchange Commission, experts testified that it’s time to scrap the practice one and for all.

“The issuer-pay model that we have is fundamentally broken,” Jeffrey Manns, law professor at George Washington University, told the commission, according to a Wall Street Journal report.

An SEC committee has been convened to look at broader bond market issues. Monday’s hearing was for a subcommittee looking specifically at the credit ratings industry. An executive chairing the subcommittee told the Journal that no recommendations have been made yet for changes.

Issuer pay has been criticized because of the potential for conflicts of interest where agencies could feel pressured to give good ratings for the companies paying them. An S&P official earlier this year defended the model, saying it is

“existential” for the agencies and that conflicts of interest need to be “managed, remedied and disclosed,” according to the Journal.

CNBC has reached out to Moody’s, S&P and Fitch for comment.

Read the full Journal story here.


Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox
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Dimon says problems like the repo lending crunch could happen ‘increasingly if we’re not careful’

Dollar funding constraints caused rates to spike in the repo markets, where banks get overnight funding for their operations. During the company’s third-quarter earnings call, Dimon also noted problems with regulations that kept banks from helping out during the funding crunch. Fed Chairman Jerome Powell and others have wondered why banks with excess liquidity didn’t step in to help during the repo problems. “They’re aware of the issues,” Dimon said of the Fed. Dimon is not the only one to warn


Dollar funding constraints caused rates to spike in the repo markets, where banks get overnight funding for their operations.
During the company’s third-quarter earnings call, Dimon also noted problems with regulations that kept banks from helping out during the funding crunch.
Fed Chairman Jerome Powell and others have wondered why banks with excess liquidity didn’t step in to help during the repo problems.
“They’re aware of the issues,” Dimon said of the Fed.
Dimon is not the only one to warn
Dimon says problems like the repo lending crunch could happen ‘increasingly if we’re not careful’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox
Keywords: news, cnbc, companies, crunch, issues, fixes, repo, banks, bank, dimon, careful, increasingly, funding, requirements, lending, happen, problems, think


Dimon says problems like the repo lending crunch could happen 'increasingly if we're not careful'

The kinds of problems that sent short-term lending rates soaring in mid-September could happen more often if permanent fixes aren’t found, J.P. Morgan Chase CEO Jamie Dimon said Tuesday.

Dollar funding constraints caused rates to spike in the repo markets, where banks get overnight funding for their operations. The Federal Reserve brought the issues under control through a series of ongoing market operations, but Dimon warned that the central bank’s fixes may not be enough.

“I think you’re going to see issues like this happen increasingly if we’re not careful because of certain constraints that were put in place,” the head of the largest bank in the U.S. by assets told CNBC’s Wilfred Frost in a “Squawk on the Street” interview.

During the company’s third-quarter earnings call, Dimon also noted problems with regulations that kept banks from helping out during the funding crunch.

Fed Chairman Jerome Powell and others have wondered why banks with excess liquidity didn’t step in to help during the repo problems. He said last week that he does not foresee the Fed relaxing capital requirements in response to the issue.

“They’re aware of the issues,” Dimon said of the Fed. “I think there should be more permanent fixes, not just temporary fixes. but let them work on it a little bit.”

Dimon did not expressly call for a change in the rules, which have been increased dramatically since the liquidity crunch that led to the 2008 financial crisis.

“I think it’s important for the American public: This is not about what’s good for an American bank. So it’s not about regulation, it’s about proper function of markets,” he said. “We’re fine either way.”

Dimon is not the only one to warn about future recurrences of repo problems. Bank of America Merrill Lynch, Goldman Sachs and others have said more issues could occur, particularly as the year draws to a close and banks have to make sure they meet international capital requirements.


Company: cnbc, Activity: cnbc, Date: 2019-11-05  Authors: jeff cox
Keywords: news, cnbc, companies, crunch, issues, fixes, repo, banks, bank, dimon, careful, increasingly, funding, requirements, lending, happen, problems, think


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Fed’s Kashkari calls for no more rate hikes until inflation hits 2%

The Federal Reserve shouldn’t raise interest rates again until inflation accelerates, Neel Kashkari, the president of the central bank’s Minneapolis district, told CNBC on Monday. “Make an announcement today that we will not raise rates until we get core inflation back to our 2% target,” Kashkari said during a “Squawk Box” interview. “That’s not a commitment to cut rates, that’s not a commitment to hold forever, it’s simply saying we’re not going to raise rates prematurely.” The current core inf


The Federal Reserve shouldn’t raise interest rates again until inflation accelerates, Neel Kashkari, the president of the central bank’s Minneapolis district, told CNBC on Monday.
“Make an announcement today that we will not raise rates until we get core inflation back to our 2% target,” Kashkari said during a “Squawk Box” interview.
“That’s not a commitment to cut rates, that’s not a commitment to hold forever, it’s simply saying we’re not going to raise rates prematurely.”
The current core inf
Fed’s Kashkari calls for no more rate hikes until inflation hits 2% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-04  Authors: jeff cox
Keywords: news, cnbc, companies, continues, hits, market, inflation, hikes, cut, fed, rates, kashkari, calls, feds, think, rate, raise


Fed's Kashkari calls for no more rate hikes until inflation hits 2%

The Federal Reserve shouldn’t raise interest rates again until inflation accelerates, Neel Kashkari, the president of the central bank’s Minneapolis district, told CNBC on Monday.

While Kashkari also said he wouldn’t be looking to cut rates, he added that the Fed can be patient now until there are stronger signs of wage growth and some important economic headwinds such as the trade war and Brexit pass.

“Make an announcement today that we will not raise rates until we get core inflation back to our 2% target,” Kashkari said during a “Squawk Box” interview. “That’s not a commitment to cut rates, that’s not a commitment to hold forever, it’s simply saying we’re not going to raise rates prematurely.”

The current core inflation level, excluding food and energy according to the Fed’s preferred personal consumption expenditures index, is around 1.7%. It hasn’t been at 2% since December.

Kashkari’s suggestion for what the Fed calls “forward guidance” came five days after the policymaking Federal Open Market Committee approved a quarter-point rate cut but indicated it likely is done with its easing cycle for a while. He is not an FOMC voter but does get input into policy discussions and will vote in 2020.

Fed Chairman Jerome Powell’s remarks in his post-meeting press conference indicated that he and Kashkari are on the same page. There would need to be a “really significant” rise in inflation before rate hikes would be likely, Powell said.

One reason for keeping rates where they are is because the labor market still has room to expand, even with the unemployment rate at 3.6%, near a 50-year low. Kashkari said the measure is not a true gauge of the jobs picture as wage growth continues to be lackluster.

“That has now been true for two or three years going forward, and I think Chairman Powell has really embraced the view that there is still slack in the labor market, and that is just resoundingly good news for the American people and I hope it continues,” he said.

The Fed raised rates nine times from December 2015 through 2018 and Kashkari said he disagreed with “all of them.” The FOMC then started cutting rates in July, followed by two others. Markets pricing points to virtually no chance of a fourth cut at the December meeting.

“I think as of right now that data looks pretty good. If the economy continues to perform as we expect, I would expect that we’re done for a while,” Kashkari said. “But we need to see. I think things can change pretty quickly.”

He said he thinks current policy is “perhaps slightly accommodative now.”


Company: cnbc, Activity: cnbc, Date: 2019-11-04  Authors: jeff cox
Keywords: news, cnbc, companies, continues, hits, market, inflation, hikes, cut, fed, rates, kashkari, calls, feds, think, rate, raise


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