Watch CNBC’s full interview with UK Chancellor Philip Hammond

Watch CNBC’s full interview with UK Chancellor Philip Hammond4 Hours AgoPhilip Hammond, U.K. Chancellor of the Exchequer, joins “Squawk Box” to discuss the biggest issues facing the economy, including the Fed’s monetary policy, Brexit and other geopolitical issues.


Watch CNBC’s full interview with UK Chancellor Philip Hammond4 Hours AgoPhilip Hammond, U.K. Chancellor of the Exchequer, joins “Squawk Box” to discuss the biggest issues facing the economy, including the Fed’s monetary policy, Brexit and other geopolitical issues.
Watch CNBC’s full interview with UK Chancellor Philip Hammond Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, issues, squawk, policy, uk, interview, cnbcs, philip, monetary, hammond, joins, chancellor, watch


Watch CNBC's full interview with UK Chancellor Philip Hammond

Watch CNBC’s full interview with UK Chancellor Philip Hammond

4 Hours Ago

Philip Hammond, U.K. Chancellor of the Exchequer, joins “Squawk Box” to discuss the biggest issues facing the economy, including the Fed’s monetary policy, Brexit and other geopolitical issues.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, issues, squawk, policy, uk, interview, cnbcs, philip, monetary, hammond, joins, chancellor, watch


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Investor Michael Farr: The Fed could be building a bubble if it cuts rates

Pundits assert a rate cut is needed as “insurance” against a potential downturn in the economy foretold by the ongoing yield curve inversion. The last nine recessions have been preceded by yield curve inversions. Yet over that time there have been ten yield curve inversions. In 1965/66 the yield curve inverted and there was not a recession immediately following. So why is Powell being accosted by the President and the markets demanding rate cuts?


Pundits assert a rate cut is needed as “insurance” against a potential downturn in the economy foretold by the ongoing yield curve inversion. The last nine recessions have been preceded by yield curve inversions. Yet over that time there have been ten yield curve inversions. In 1965/66 the yield curve inverted and there was not a recession immediately following. So why is Powell being accosted by the President and the markets demanding rate cuts?
Investor Michael Farr: The Fed could be building a bubble if it cuts rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: michael k farr
Keywords: news, cnbc, companies, president, monetary, economy, curve, building, rate, farr, fed, michael, bubble, yield, policy, markets, investor, cuts, reserve, powell, rates


Investor Michael Farr: The Fed could be building a bubble if it cuts rates

Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on “Monetary Policy and the State of the Economy” in Washington, July 10, 2019.

All eyes in the financial world turned to Capitol Hill this week as Federal Reserve Chair Jerome Powell gave his semi-annual testimony. In his opening statement Powell said, “It appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook. Inflation pressures remain muted.”

What the markets heard was, “Ice cream for breakfast! Candy for everyone!”

The markets clearly believe a rate-cut regime is just around the corner, but is that, in the long-run, the best for the economy?

Pundits assert a rate cut is needed as “insurance” against a potential downturn in the economy foretold by the ongoing yield curve inversion. Although the widely watched 2- to 10-year part of the curve is still positive (though narrowing and now about 20 basis points) the 3-month T-bill has yielded more than the 10 year T-note for seven consecutive weeks after briefly inverting in March. The last nine recessions have been preceded by yield curve inversions. Yet over that time there have been ten yield curve inversions. In 1965/66 the yield curve inverted and there was not a recession immediately following.

History does not repeat itself, but there are similarities to today. Powell may be well advised to follow the path of his predecessor, William McChesney Martin, who stood firm against a president demanding monetary policy easing, and ultimately Chair Martin presided over the longest economic expansion in US history up to that time.

Presently, prices are stable and we are effectively at full employment: the dual mandate of the Fed. So why is Powell being accosted by the President and the markets demanding rate cuts? Shouldn’t we throw a parade and declare victory?


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: michael k farr
Keywords: news, cnbc, companies, president, monetary, economy, curve, building, rate, farr, fed, michael, bubble, yield, policy, markets, investor, cuts, reserve, powell, rates


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European stocks close lower after IMF calls for ECB stimulus

European stocks closed lower on Thursday after the IMF said the euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy. In a report published on Thursday afternoon, the International Monetary Fund (IMF) also called for fresh stimulus from the ECB. “Directors agreed that monetary policy should remain accommodative until inflation is sustainably converging to the ECB’s objective,” it said. Sewing is seeking shareholder backing for a massive 7.4 billion euro ($8.4 billi


European stocks closed lower on Thursday after the IMF said the euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy. In a report published on Thursday afternoon, the International Monetary Fund (IMF) also called for fresh stimulus from the ECB. “Directors agreed that monetary policy should remain accommodative until inflation is sustainably converging to the ECB’s objective,” it said. Sewing is seeking shareholder backing for a massive 7.4 billion euro ($8.4 billi
European stocks close lower after IMF calls for ECB stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: chloe taylor elliot smith, chloe taylor, elliot smith
Keywords: news, cnbc, companies, close, financial, brexit, stocks, stock, tax, calls, testimony, lower, imf, monetary, ecb, bank, european, british, trade, stimulus, billion


European stocks close lower after IMF calls for ECB stimulus

European stocks closed lower on Thursday after the IMF said the euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy.

In a report published on Thursday afternoon, the International Monetary Fund (IMF) also called for fresh stimulus from the ECB.

“Directors agreed that monetary policy should remain accommodative until inflation is sustainably converging to the ECB’s objective,” it said. “They welcomed the recent extension of forward guidance to help achieve a sustained pickup in inflation. Targeted macroprudential policies could be used to address any financial stability risks.”

The pan-European Stoxx 600 was in negative territory at the closing bell, with all major bourses in the red.

Stateside, the Dow Jones Industrial Average rallied to a record high on Thursday, lifted by health insurance stocks after the White House dropped a proposal to eliminate drug rebates.

Stocks on Wall Street were also lifted by Wednesday’s testimony by Federal Reserve Chair Jerome Powell, which signaled that easier monetary policy could be implemented later this month.

Powell told the House Financial Services Committee in a prepared testimony on Wednesday that the central bank will “act as appropriate” to sustain expansion as “crosscurrents” are weighing on the economic outlook.

Back in Europe, the Bank of England’s Financial Stability Report on Thursday suggested that British banks hold enough capital to cope with the simultaneous risks of a no-deal Brexit and a global trade war, but warned that a slide in overseas investment into some British assets due to Brexit does pose a risk to the wider economy.

France’s Senate approved a tax on the revenues of tech giants like Google, Amazon and Facebook on Thursday, defying a warning from the U.S. Trade Representative Robert Lighthizer said Wednesday that President Donald Trump has ordered a probe into whether the planned “digital services” tax is an unfair trade practice that targets U.S. companies.

In corporate news, Deutsche Bank shareholders will have the opportunity to grill CEO Christian Sewing on how he plans to deliver on the German lender’s revenue growth targets during a global roadshow. Sewing is seeking shareholder backing for a massive 7.4 billion euro ($8.4 billion) restructuring program. Deutsche Bank shares were up 0.9% on Thursday.

Swiss Re has suspended the $4.1 billion IPO (initial public offering) of its U.K. life insurance business due to market conditions. The reinsurance giant’s stock pared early losses to end the session around the flatline.

In terms of individual stock performance, German packaging manufacturer Gerresheimer topped the Stoxx 600, jumping 13.7% after reporting a strong second quarter, with net income more than doubling.

At the other end of the table, British online supermarket Ocado saw its shares fall 6% during afternoon trade, after U.S. retailer Kroger announced that the two companies would invest $55 million in a “customer fulfillment center” in Georgia, an automated warehouse facility with digital and robotic capabilities.

Swiss chemical company Sika shed 4% after UBS downgraded the stock from “neutral” to “sell.”


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: chloe taylor elliot smith, chloe taylor, elliot smith
Keywords: news, cnbc, companies, close, financial, brexit, stocks, stock, tax, calls, testimony, lower, imf, monetary, ecb, bank, european, british, trade, stimulus, billion


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Stocks close higher, S&P 500 hits 3,000 for the first time as Fed chief signals rate cut ahead

Stocks reached record highs Wednesday after testimony from Federal Reserve Chair Jerome Powell bolstered the case for easier monetary policy in the U.S. The S&P 500 briefly broke above 3,000 for the first time, while the Nasdaq Composite and Dow Jones Industrial Average also reached all-time highs. “What’s interesting though is how quickly Powell pointed abroad to support the case for a weakening economy. In testimony to the House Financial Services Committee, Powell said business investments ac


Stocks reached record highs Wednesday after testimony from Federal Reserve Chair Jerome Powell bolstered the case for easier monetary policy in the U.S. The S&P 500 briefly broke above 3,000 for the first time, while the Nasdaq Composite and Dow Jones Industrial Average also reached all-time highs. “What’s interesting though is how quickly Powell pointed abroad to support the case for a weakening economy. In testimony to the House Financial Services Committee, Powell said business investments ac
Stocks close higher, S&P 500 hits 3,000 for the first time as Fed chief signals rate cut ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: fred imbert yun li, fred imbert, yun li
Keywords: news, cnbc, companies, cut, higher, signals, close, powell, outlook, stocks, economy, testimony, uncertainties, reached, sp, rate, monetary, fed, economic, policy, chief, hits, case


Stocks close higher, S&P 500 hits 3,000 for the first time as Fed chief signals rate cut ahead

Stocks reached record highs Wednesday after testimony from Federal Reserve Chair Jerome Powell bolstered the case for easier monetary policy in the U.S.

The S&P 500 briefly broke above 3,000 for the first time, while the Nasdaq Composite and Dow Jones Industrial Average also reached all-time highs.

“I think it’s safe to say Powell has his dove hat on and a quarter [rate] cut is coming,” said Mike Loewengart, vice president of investment strategy at E-Trade. “What’s interesting though is how quickly Powell pointed abroad to support the case for a weakening economy. Because the reality is things are still pretty strong here at home—last week’s jobs numbers made that clear.”

In testimony to the House Financial Services Committee, Powell said business investments across the U.S. have slowed “notably” recently as uncertainties over the economic outlook linger.

“Crosscurrents have reemerged,” Powell said. “Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: fred imbert yun li, fred imbert, yun li
Keywords: news, cnbc, companies, cut, higher, signals, close, powell, outlook, stocks, economy, testimony, uncertainties, reached, sp, rate, monetary, fed, economic, policy, chief, hits, case


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Morgan Stanley downgrades global stocks: Weak growth to trump easier monetary policy

Morgan Stanley downgraded its global stocks on fears that slowing GDP growth around the world will offset central banks support. “Over recent weeks, you’ve heard us discussing why we think investors should fade the optimism from the recent G20,” Sheets wrote in the July 7 note. The Morgan Stanley strategist argued that investors still haven’t learned that when easier policy meets weaker growth, the latter tends to matter more for stock market returns. To that end, Morgan Stanley is underweight b


Morgan Stanley downgraded its global stocks on fears that slowing GDP growth around the world will offset central banks support. “Over recent weeks, you’ve heard us discussing why we think investors should fade the optimism from the recent G20,” Sheets wrote in the July 7 note. The Morgan Stanley strategist argued that investors still haven’t learned that when easier policy meets weaker growth, the latter tends to matter more for stock market returns. To that end, Morgan Stanley is underweight b
Morgan Stanley downgrades global stocks: Weak growth to trump easier monetary policy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: thomas franck
Keywords: news, cnbc, companies, strategist, sheets, wrote, policy, weaker, trade, trump, morgan, think, stocks, stanley, weak, monetary, growth, global, easier, market, investors


Morgan Stanley downgrades global stocks: Weak growth to trump easier monetary policy

Morgan Stanley downgraded its global stocks on fears that slowing GDP growth around the world will offset central banks support.

Chief cross-asset strategist Andrew Sheets told clients in a note that despite Wall Street’s confidence in a more accommodating Federal Reserve, investors haven’t fully appreciated the odds of weaker economic growth in the months to come.

“Over recent weeks, you’ve heard us discussing why we think investors should fade the optimism from the recent G20,” Sheets wrote in the July 7 note. “Why we think bad data should be feared rather than cheered because it will bring more central bank easing. Why we think the market is too optimistic on 2019 earnings and is underestimating the pressure from inventories, labour costs and trade uncertainty.”

“The time has come to put our money where our mouth is,” he said. “The positives of easier policy will be offset by the negatives of weaker growth.”

The strategist noted that over the next 12 months, there is now just 1% average upside to Morgan Stanley’s price targets for the S&P 500, MSCI Europe, MSCI EM and Topix Japan. The S&P 500 clinched all-time and closing highs on July 3 on the back of investor hopes that the Fed will ease interest rates at its two-day policy meeting at the end of the month.

The Morgan Stanley strategist argued that investors still haven’t learned that when easier policy meets weaker growth, the latter tends to matter more for stock market returns. That, in turn, suggests that stocks could be set for poor returns given global trade worries, softening PMI data and diminished inflation expectations.

Putting it all together, Sheets said that second-quarter earnings could prove painful for investors, who remains overly confident in current 2019 projections.

“The market is underpricing the risk that companies lower full-year guidance. Just think about how much has changed since 1Q reporting in mid-April,” he wrote. “A US-China trade deal that was widely expected to be resolved led instead to a new round of tariffs. Global PMIs have continued to fall. And Morgan Stanley’s Business Conditions Index, a survey of how our equity analysts feel about their companies, suffered its largest one-month decline ever in June. ”

To that end, Morgan Stanley is underweight both equities and credit, equal-weight government bonds and overweight cash. Sheets wrote that the brokerage’s favorite asset class remains emerging market fixed income.


Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: thomas franck
Keywords: news, cnbc, companies, strategist, sheets, wrote, policy, weaker, trade, trump, morgan, think, stocks, stanley, weak, monetary, growth, global, easier, market, investors


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Central banks cannot perform miracles and lawmakers need to reduce uncertainty, ECB member says

France’s central bank governor told CNBC Saturday that monetary policy cannot compensate for trade tensions, and political leaders need to act in order to fend off today’s economic threats. “And let us be clear, uncertainty created by trade tensions,” Villeroy de Galhau, who is also a member of the Governing Council at the European Central Bank (ECB), said. “So the priority is to reduce this uncertainty and here we will do our duty as central bankers, but monetary policy cannot do everything. Mo


France’s central bank governor told CNBC Saturday that monetary policy cannot compensate for trade tensions, and political leaders need to act in order to fend off today’s economic threats. “And let us be clear, uncertainty created by trade tensions,” Villeroy de Galhau, who is also a member of the Governing Council at the European Central Bank (ECB), said. “So the priority is to reduce this uncertainty and here we will do our duty as central bankers, but monetary policy cannot do everything. Mo
Central banks cannot perform miracles and lawmakers need to reduce uncertainty, ECB member says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: matt clinch
Keywords: news, cnbc, companies, banks, perform, central, uncertainty, ecb, policy, tensions, member, reduce, trade, villeroy, political, need, miracles, lawmakers, tariffs, monetary


Central banks cannot perform miracles and lawmakers need to reduce uncertainty, ECB member says

France’s central bank governor told CNBC Saturday that monetary policy cannot compensate for trade tensions, and political leaders need to act in order to fend off today’s economic threats.

Speaking to CNBC’s Annette Weisbach at an economic conference in Aix-en-Provence in southern France, François Villeroy de Galhau underlined that the main threat to global growth at present is uncertainty.

“And let us be clear, uncertainty created by trade tensions,” Villeroy de Galhau, who is also a member of the Governing Council at the European Central Bank (ECB), said.

“So the priority is to reduce this uncertainty and here we will do our duty as central bankers, but monetary policy cannot do everything. Monetary policy has no magic wand, it cannot make miracles. And it’s up to political leaders to reduce these uncertainties, sometimes self-created,” he added.

The world’s two largest economies are locked in a trade war that has hurt global growth and threatened to spill over into other regions. The U.S. has so far slapped a 25% tariff on $250 billion of Chinese goods, and Beijing has also raised tariffs on billions of dollars’ worth of American products. This week, the U.S. government also ratcheted up pressure on Europe by threatening tariffs on $4 billion of additional EU goods.


Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: matt clinch
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Kudlow: Jobs report shows country is in a ‘very strong prosperity cycle,’ but Fed should still cut

“We are still in a very strong prosperity cycle. I think the incentives of our supply-side policies are working,” Kudlow said Friday on Bloomberg Television after the release of the June jobs report. While seeing a strong economy, Kudlow still thinks the Fed should ease monetary policy, and the reason for that is the “rock-bottom” inflation rate. I just don’t want anything to interfere with this strong prosperity cycle.” After a blowout jobs report, traders are still pricing in an easing of mone


“We are still in a very strong prosperity cycle. I think the incentives of our supply-side policies are working,” Kudlow said Friday on Bloomberg Television after the release of the June jobs report. While seeing a strong economy, Kudlow still thinks the Fed should ease monetary policy, and the reason for that is the “rock-bottom” inflation rate. I just don’t want anything to interfere with this strong prosperity cycle.” After a blowout jobs report, traders are still pricing in an easing of mone
Kudlow: Jobs report shows country is in a ‘very strong prosperity cycle,’ but Fed should still cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: yun li
Keywords: news, cnbc, companies, policy, reason, cycle, prosperity, country, monetary, economy, kudlow, rate, policies, jobs, report, fed, cut, shows, strong


Kudlow: Jobs report shows country is in a 'very strong prosperity cycle,' but Fed should still cut

Larry Kudlow, director of the National Economic Council, is “very optimistic” about the health of the U.S. economy but believes that because of low inflation, the Federal Reserve should “take back the interest rate hike” it made in December.

“We are still in a very strong prosperity cycle. … We have very good pro-growth policies, low taxes, deregulation, opening energy, trade reform. I think the incentives of our supply-side policies are working,” Kudlow said Friday on Bloomberg Television after the release of the June jobs report.

Payroll growth rebounded sharply in June as the U.S. economy added 224,000 jobs versus 165,000 expected, according to the Labor Department. Wage growth fell short of expectations however and the unemployment rate ticked higher.

While seeing a strong economy, Kudlow still thinks the Fed should ease monetary policy, and the reason for that is the “rock-bottom” inflation rate.

Inflation is “way below the Fed’s target and what most people want and that’s the reason they should take back the interest rate hike,” Kudlow said. “With a weak global economy taking out an insurance policy is not a bad thing … I just don’t want anything to interfere with this strong prosperity cycle.”

After a blowout jobs report, traders are still pricing in an easing of monetary policy next month, betting on a 94% chance of a quarter-point cut. The Fed will announce its policy decision at the conclusion of the July 30-31 meeting.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: yun li
Keywords: news, cnbc, companies, policy, reason, cycle, prosperity, country, monetary, economy, kudlow, rate, policies, jobs, report, fed, cut, shows, strong


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Europe stocks close lower after strong US jobs data dampens hopes of Fed cut; Deutsche Bank up 2.5%

European stocks traded lower Friday afternoon following a stronger-than-expected U.S. nonfarm payrolls report, which weakened the likelihood that the Federal Reserve will cut interest rates at July’s monetary policy meeting. Market focus was largely attuned to U.S. nonfarm payrolls and unemployment data, which came in stronger-than-expected on Friday afternoon. Nonfarm payrolls rose by 224,000 in June, outstripping early predictions of 160,000 according to a Reuters poll. The central bank opened


European stocks traded lower Friday afternoon following a stronger-than-expected U.S. nonfarm payrolls report, which weakened the likelihood that the Federal Reserve will cut interest rates at July’s monetary policy meeting. Market focus was largely attuned to U.S. nonfarm payrolls and unemployment data, which came in stronger-than-expected on Friday afternoon. Nonfarm payrolls rose by 224,000 in June, outstripping early predictions of 160,000 according to a Reuters poll. The central bank opened
Europe stocks close lower after strong US jobs data dampens hopes of Fed cut; Deutsche Bank up 2.5% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: elliot smith
Keywords: news, cnbc, companies, hopes, european, monetary, strongerthanexpected, week, policy, deutsche, payrolls, shares, fed, nonfarm, lower, strong, data, europe, dampens, jobs, bank, stocks


Europe stocks close lower after strong US jobs data dampens hopes of Fed cut; Deutsche Bank up 2.5%

European stocks traded lower Friday afternoon following a stronger-than-expected U.S. nonfarm payrolls report, which weakened the likelihood that the Federal Reserve will cut interest rates at July’s monetary policy meeting.

The pan-European Stoxx 600 closed provisionally 0.7% lower in the end of week session, with basic resources shedding 2% while banks and retail stocks were the only sectors trading in positive territory, each up just 0.2%.

Market focus was largely attuned to U.S. nonfarm payrolls and unemployment data, which came in stronger-than-expected on Friday afternoon. Nonfarm payrolls rose by 224,000 in June, outstripping early predictions of 160,000 according to a Reuters poll. Stocks on Wall Street fell at the open on Friday after the release.

A weaker-than-expected figure would have increased bets that the Federal Reserve will cut interest rates at its meeting on July 30 and 31. The central bank opened the door to easier monetary policy last month by stating it will “act as appropriate” to maintain the current economic expansion. However, the surprisingly strong figure weakens the Fed’s case for policy easing.

Dismal German industrial orders data on Friday morning, compounding a woeful week for Europe’s largest economy, provided further cause for investors to lock in. Industrial stocks were down 1.8% following the release.

In corporate news, Deutsche Bank on Friday announced that investment banking chief Garth Ritchie had agreed to step down. The long-speculated move comes as Deutsche prepares a sweeping multi-billion dollar overhaul that will see substantial cuts to its investment banking division. The German lender’s shares climbed 2.49% Friday as investors reacted to the news.

Geopolitical tensions in the Middle East are also in focus after British Royal Marines seized a large Iranian oil tanker on Thursday for trying to take oil to Syria in violation of EU sanctions, evoking fury in Tehran.

Meanwhile, European Central Bank Vice President Luis de Guindos told a Spanish radio station on Thursday that the bank is keeping all monetary policy options on the table for dealing with an economic slowdown and reaching its inflation goals.

The European blue chip index’s biggest loser Friday was Swedish tech giant Hexagon, which saw its shares plunge 13% after warning of a drop in second-quarter sales due to the U.S.-China trade war. The company also announced that it would be cutting 700 jobs.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: elliot smith
Keywords: news, cnbc, companies, hopes, european, monetary, strongerthanexpected, week, policy, deutsche, payrolls, shares, fed, nonfarm, lower, strong, data, europe, dampens, jobs, bank, stocks


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Trump’s Fed pick Judy Shelton is a fan of the gold standard and other unusual economic policies

Trump announced his intention to nominate both Shelton and St. Louis Fed economist Christopher Waller via tweet on Tuesday. Shelton’s unorthodox monetary beliefs will likely draw questions from Senate lawmakers, who will ultimately need to approve Shelton and Waller to the Fed board. The choice of Shelton may hint at Trump’s growing frustration with Fed leaders and the direction of the central bank’s monetary policy. Shelton, no fan of the Fed’s, recently argued against an overly active central


Trump announced his intention to nominate both Shelton and St. Louis Fed economist Christopher Waller via tweet on Tuesday. Shelton’s unorthodox monetary beliefs will likely draw questions from Senate lawmakers, who will ultimately need to approve Shelton and Waller to the Fed board. The choice of Shelton may hint at Trump’s growing frustration with Fed leaders and the direction of the central bank’s monetary policy. Shelton, no fan of the Fed’s, recently argued against an overly active central
Trump’s Fed pick Judy Shelton is a fan of the gold standard and other unusual economic policies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: thomas franck
Keywords: news, cnbc, companies, bank, trump, policies, shelton, standard, unusual, pick, fed, waller, judy, trade, fan, trumps, central, gold, monetary


Trump's Fed pick Judy Shelton is a fan of the gold standard and other unusual economic policies

Judy Shelton, U.S. executive director for the European Bank for Reconstruction and Development, stands for a photograph.

In tapping Judy Shelton to become one of two Federal Reserve Board governors, President Donald Trump selected one of the minority of mainstream economists supportive of a return to the gold standard and critical of central bank activity.

Shelton, who serves as the U.S. executive director at the European Bank for Reconstruction and Development, wrote as recently as last year in support of pegging the dollar to gold prices.

Trump announced his intention to nominate both Shelton and St. Louis Fed economist Christopher Waller via tweet on Tuesday.

Shelton’s unorthodox monetary beliefs will likely draw questions from Senate lawmakers, who will ultimately need to approve Shelton and Waller to the Fed board.

In a post published by the libertarian think tank Cato Institute in 2018, Shelton drew a comparison between cryptocurrencies and gold.

“If the appeal of cryptocurrencies is their capacity to provide a common currency, and to maintain a uniform value for every issued unit, we need only consult historical experience to ascertain that these same qualities were achieved through the classical international gold standard,” she wrote.

“In proposing a new international monetary system linked in some way to gold, America has an opportunity to secure continued prominence in global monetary affairs.”

The choice of Shelton may hint at Trump’s growing frustration with Fed leaders and the direction of the central bank’s monetary policy. Trump has argued that higher interest rates and so-called quantitative tightening have capped GDP growth and dampened the U.S. position in trade deliberations with Beijing.

Two previous Trump nominees, Stephen Moore and Herman Cain, bowed out of consideration after it became clear their confirmation process was in jeopardy.

Shelton, no fan of the Fed’s, recently argued against an overly active central bank.

Questioned in a recent interview with the Wall Street Journal opinion page whether the U.S. central bank should lower rates she said, “The answer is yes.”

“When you have an economy primed to grow because of reduced taxes, less regulation, dynamic energy and trade reforms, you want to ensure maximum access to capital,” she told the Journal. “The Fed’s practice of paying banks to keep money parked at the Fed in deposit accounts instead of going into the economy is unhealthy and distorting; the rate should come down quickly as the practice is phased out.”


Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: thomas franck
Keywords: news, cnbc, companies, bank, trump, policies, shelton, standard, unusual, pick, fed, waller, judy, trade, fan, trumps, central, gold, monetary


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Dow and Nasdaq close at record highs amid expectations for the Fed to lower rates

The S&P 500 also rose 0.7% as the real estate and consumer sectors powered the broad index to record levels. The S&P 500 closed just 0.1% below 3,000. “If technology continues to be strong and the semiconductors get some kind of bounce, that could probably push the S&P 500 through it 3,000. The disappointing data strengthens the Fed’s case for lowering rates at its monetary policy meeting at the end of July. Last month, the central bank opened the door to easier monetary policy by stating it wil


The S&P 500 also rose 0.7% as the real estate and consumer sectors powered the broad index to record levels. The S&P 500 closed just 0.1% below 3,000. “If technology continues to be strong and the semiconductors get some kind of bounce, that could probably push the S&P 500 through it 3,000. The disappointing data strengthens the Fed’s case for lowering rates at its monetary policy meeting at the end of July. Last month, the central bank opened the door to easier monetary policy by stating it wil
Dow and Nasdaq close at record highs amid expectations for the Fed to lower rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: fred imbert
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Dow and Nasdaq close at record highs amid expectations for the Fed to lower rates

Stocks closed at record highs on Wednesday as investors bet on a potential rate cut from the Federal Reserve later this month after the release of weaker-than-expected economic data.

The Dow Jones Industrial Average gained 175 points, notching intraday and closing all-time highs. The Nasdaq Composite advanced 0.7%.

The S&P 500 also rose 0.7% as the real estate and consumer sectors powered the broad index to record levels. Tech also boosted the index, rising 0.7% to a record high. The S&P 500 closed just 0.1% below 3,000.

“The first time we get there you’ll probably see some profit-taking,” said Scott Redler, partner with T3live.com. “If technology continues to be strong and the semiconductors get some kind of bounce, that could probably push the S&P 500 through it 3,000. It’s good to see the FANG names show some power.”

Shares of Facebook, Amazon, Netflix and Google-parent Alphabet all rose on Wednesday. The session ended at 1 p.m. ET due to the Fourth of July holiday.

Private payrolls in the U.S. increased by 102,000 in June, ADP and Moody’s Analytics said. Economists polled by Dow Jones expected growth of 135,000.

The disappointing data strengthens the Fed’s case for lowering rates at its monetary policy meeting at the end of July. Last month, the central bank opened the door to easier monetary policy by stating it will “act as appropriate” to maintain the current economic expansion.


Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: fred imbert
Keywords: news, cnbc, companies, fed, sp, expectations, dow, 500, rose, rates, probably, close, jones, nasdaq, month, index, amid, record, monetary, highs, policy, lower


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