Navigating fintech’s rise: IMF, World Bank launch guide for policymakers

The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology — commonly known as fintech. The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings. Fintech has the potential to reach the 1.7 billion adults in the world that don’t have access to financial services, IMF Managing Dire


The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology — commonly known as fintech. The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings. Fintech has the potential to reach the 1.7 billion adults in the world that don’t have access to financial services, IMF Managing Dire
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Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: yen nee lee
Keywords: news, cnbc, companies, policymakers, navigating, bank, fintechs, technology, financial, work, paper, services, world, launch, fintech, systems, imf, rise, guide


Navigating fintech's rise: IMF, World Bank launch guide for policymakers

The International Monetary Fund and the World Bank jointly released a paper that will guide policymakers around the world in their handling of the rise of financial technology — commonly known as fintech.

The paper, called the Bali Fintech Agenda, was launched on Thursday on the Indonesian island where the IMF and the World Bank are holding their annual meetings.

The paper outlines 12 “elements” or considerations that the IMF, the World Bank and governments can keep in mind when designing policies and regulations that can maximize the benefits of fintech while keeping financial systems sound.

Those “elements” include using fintech to promote financial inclusion, allowing new technology players to have level playing fields with existing companies and having countries work together to protect the global financial system.

Fintech has the potential to reach the 1.7 billion adults in the world that don’t have access to financial services, IMF Managing Director Christine Lagarde said in a statement.

But, new technology could threaten existing financial systems. For example, volatility in the price of cryptocurrencies has raised concerns about investor protection, according to the paper.

“Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks,” Lagarde said.

“We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not just the few,” she added.

World Bank Group President Jim Yong Kim said fintech would be particularly helpful to low-income countries, where access to financial services is low.

Both organizations said the paper doesn’t represent current work, nor does it aim to provide specific guidance or policy advice. They will, however, start to develop specific programs on fintech.

The IMF will focus initially on the implications on monetary and financial stability and how international monetary systems and global financial safety nets evolve. The World Bank will work on using fintech to deepen financial markets, enhance responsible access to financial services, and improve cross-border payments and remittance transfer systems.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: yen nee lee
Keywords: news, cnbc, companies, policymakers, navigating, bank, fintechs, technology, financial, work, paper, services, world, launch, fintech, systems, imf, rise, guide


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ECB’s rising growth fears not enough to derail policy: minutes

Global trade tensions could slow euro zone growth further and European Central Bank policymakers debated last month whether to downgrade their risk assessment, minutes of their September meeting showed on Thursday. Indeed, even as trade tensions weighed on growth and a stock market selloff amplified growth fears, some policymakers argued that was not enough for the bank to backtrack on policy normalization. “A gradual pace of monetary policy normalisation is justified,” Finnish central bank chie


Global trade tensions could slow euro zone growth further and European Central Bank policymakers debated last month whether to downgrade their risk assessment, minutes of their September meeting showed on Thursday. Indeed, even as trade tensions weighed on growth and a stock market selloff amplified growth fears, some policymakers argued that was not enough for the bank to backtrack on policy normalization. “A gradual pace of monetary policy normalisation is justified,” Finnish central bank chie
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Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: krisztian bocsi, bloomberg, getty images
Keywords: news, cnbc, companies, growth, fears, derail, policymakers, rising, ecb, bank, minutes, argued, month, policy, ecbs, meeting, inflation


ECB's rising growth fears not enough to derail policy: minutes

Global trade tensions could slow euro zone growth further and European Central Bank policymakers debated last month whether to downgrade their risk assessment, minutes of their September meeting showed on Thursday.

But policymakers ultimately concluded that the domestic economy was showing enough resilience to consider risks broadly balanced, even if some argued that the factors behind the recent slowdown may not be temporary as earlier thought, the ECB said in the accounts of the Sept 13 meeting.

The ECB kept policy unchanged as expected last month, staying on track to wrap up a 2.6 trillion-euro ($3 trillion) bond purchases scheme this year and raise interest rates next autumn, continuing its slow but steady pace of policy tightening.

Indeed, even as trade tensions weighed on growth and a stock market selloff amplified growth fears, some policymakers argued that was not enough for the bank to backtrack on policy normalization.

“A gradual pace of monetary policy normalisation is justified,” Finnish central bank chief Olli Rehn said in Indonesia on Thursday. “The current strength of the euro area economy supports our confidence that inflation will converge towards … the ECB’s price stability target.”

But some policymakers appear to be increasingly cautions, according to the minutes.

“A remark was made that some of the factors behind the (downward growth) revisions might not be entirely of a transitory nature,” the minutes showed. “It was also argued that there could be larger spillovers from weaker external demand to domestic demand.”

Still, while some policymakers argued that the case could be made for downgrading the risk assessment, there was agreement that the underlying strength of the economy would mitigate the downside risks to activity.

“High-frequency indicators had stabilised and remained at elevated levels, underlining the overall robustness of economic activity,” chief economist Peter Praet told policymakers at the meeting, the minutes showed.

With years of unprecedented stimulus finally lifting inflation, the ECB has been dialling back support, but only by the smallest of increments, fearing that bigger moves risked unravelling its work.

While the ECB has not explicitly pledged any rate hikes, policymakers, including Praet, have argued that they were comfortable with market expectation for a small increase in the fourth quarter of 2019, followed by only small and infrequent moves.

“To be any more precise than that, to lock in a date, to tie our hands, would be rather risky,” Ardo Hansson, Estonia’s central bank chief said at the annual meeting of the International Monetary Fund on Thursday.

“When we get closer, we can have another discussion if we need to adjust the language again, but this is not a debate we are going to have just yet,” Hansson said.

Policymakers also concluded last month that domestic cost pressures continued to build and broaden, indicating that inflation would rise, moving back towards the bank’s target of almost 2 percent after undershooting it for over five years.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: krisztian bocsi, bloomberg, getty images
Keywords: news, cnbc, companies, growth, fears, derail, policymakers, rising, ecb, bank, minutes, argued, month, policy, ecbs, meeting, inflation


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Japan’s consumer price growth slows in April

Japan’s core consumer prices rose 0.7 percent in April from a year earlier, government data showed on Friday, showing little of the inflationary momentum needed to reach the central bank’s elusive 2 percent target. The increase in the core consumer price index, which includes oil products but excludes volatile fresh food costs, fell slightly short of a median market forecast for a 0.8 percent rise. While recent rises in oil costs may underpin price growth, many analysts expect inflation to fall


Japan’s core consumer prices rose 0.7 percent in April from a year earlier, government data showed on Friday, showing little of the inflationary momentum needed to reach the central bank’s elusive 2 percent target. The increase in the core consumer price index, which includes oil products but excludes volatile fresh food costs, fell slightly short of a median market forecast for a 0.8 percent rise. While recent rises in oil costs may underpin price growth, many analysts expect inflation to fall
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Company: cnbc, Activity: cnbc, Date: 2018-05-17  Authors: smith collection, gado, getty images
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Japan's consumer price growth slows in April

Japan’s core consumer prices rose 0.7 percent in April from a year earlier, government data showed on Friday, showing little of the inflationary momentum needed to reach the central bank’s elusive 2 percent target.

The increase in the core consumer price index, which includes oil products but excludes volatile fresh food costs, fell slightly short of a median market forecast for a 0.8 percent rise. It followed a 0.9 percent gain in March.

While recent rises in oil costs may underpin price growth, many analysts expect inflation to fall short of the Bank of Japan’s goal in coming years as companies remain wary of raising prices for fear of scaring away cost-sensitive consumers.

Subdued inflation and signs that growth may have reached its peak could discourage BOJ policymakers from signalling their intention to end ultra-loose monetary policy, analysts say.

Japan’s economy contracted more than expected at the start of this year, suggesting growth has peaked after the best run of expansion in decades.

While many analysts expect growth to rebound in the current quarter, any indication of the economy hitting a plateau would be a bad omen for policymakers’ efforts to lift Japan sustainably out of deflation.

The BOJ last month dropped a timeframe for hitting its price goal and Governor Haruhiko Kuroda has conceded that pushing up inflation expectations would take time.


Company: cnbc, Activity: cnbc, Date: 2018-05-17  Authors: smith collection, gado, getty images
Keywords: news, cnbc, companies, japans, slows, consumer, growth, short, hitting, price, policymakers, inflation, analysts, oil, prices


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Dollar bounces after Monday’s drop; Fed in focus

The dollar edged higher on Tuesday, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the U.S. Federal Reserve, which is widely expected to raise interest rates. Markets expect two more rate hikes after Wednesday for the remainder of the year, although analysts warn that if a majority of Fed policymakers forecast a total of four increases this year in their “dot plot” projections then the dollar could gain. The dollar edged 0.


The dollar edged higher on Tuesday, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the U.S. Federal Reserve, which is widely expected to raise interest rates. Markets expect two more rate hikes after Wednesday for the remainder of the year, although analysts warn that if a majority of Fed policymakers forecast a total of four increases this year in their “dot plot” projections then the dollar could gain. The dollar edged 0.
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Company: cnbc, Activity: cnbc, Date: 2018-03-19  Authors: jock fistick, bloomberg via getty images
Keywords: news, cnbc, companies, interest, rate, bounces, higher, focus, fed, drop, previous, reversing, hikes, policymakers, mondays, dollar, investors


Dollar bounces after Monday's drop; Fed in focus

The dollar edged higher on Tuesday, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the U.S. Federal Reserve, which is widely expected to raise interest rates.

Though a quarter point hike — its sixth since the Fed began raising interest rates in late 2015 — is baked into market prices, investors are keen to hear what officials have to say on the future trajectory of rates.

Markets expect two more rate hikes after Wednesday for the remainder of the year, although analysts warn that if a majority of Fed policymakers forecast a total of four increases this year in their “dot plot” projections then the dollar could gain.

“Only a confident sounding outlook wouldn’t shake the dollar out of its ranges as there seems to be more structural headwinds at play, but if we see many voices leaning towards four rate hikes, that might be a game changer in the short term,” said Richard Falkenhall, senior FX strategist at SEB.

The dollar edged 0.42 percent higher against a basket of currencies to 90.15, partially reversing a 0.5 percent drop the previous day thanks to a relief rally in sterling after a transition deal was announced and the euro’s bounce.

On Tuesday, the single currency was consolidating gains at $1.2296 against the dollar.

The common currency had drawn strength on Monday from a source-based Reuters report that ECB policymakers are shifting the focus of their debates.


Company: cnbc, Activity: cnbc, Date: 2018-03-19  Authors: jock fistick, bloomberg via getty images
Keywords: news, cnbc, companies, interest, rate, bounces, higher, focus, fed, drop, previous, reversing, hikes, policymakers, mondays, dollar, investors


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The Fed maintains 2018, 2019 rate forecast

The Federal Reserve said Wednesday that it sees the federal funds rate at 2.1 percent by the end of 2018, unchanged from its September forecast. The U.S. central bank also maintained its 2019 projection, saying it sees the benchmark rate at 2.7 percent. Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The charts, which the Fed began publishing in 2012, have become a series of tea leaves


The Federal Reserve said Wednesday that it sees the federal funds rate at 2.1 percent by the end of 2018, unchanged from its September forecast. The U.S. central bank also maintained its 2019 projection, saying it sees the benchmark rate at 2.7 percent. Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The charts, which the Fed began publishing in 2012, have become a series of tea leaves
The Fed maintains 2018, 2019 rate forecast Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-12-13  Authors: christine wang, john w schoen
Keywords: news, games, cnbc, companies, sees, rate, tea, forecast, policymakers, fed, read, rates, reserve, 2018, projections, 2019, leaves, maintains, federal


The Fed maintains 2018, 2019 rate forecast

The Federal Reserve said Wednesday that it sees the federal funds rate at 2.1 percent by the end of 2018, unchanged from its September forecast.

The U.S. central bank also maintained its 2019 projection, saying it sees the benchmark rate at 2.7 percent.

Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The results are the central bank’s so-called dot plot — a visual representation of how many members think rates will hit a given level over the short, medium and longer run.

The charts, which the Fed began publishing in 2012, have become a series of tea leaves that many investors like to read for hints about what the FOMC will do next. But those tea leaves can be hard to read in isolation.

To give a better view of how the Fed’s thinking has changed over time, we’ve plotted the changes in the dots over the last five years, along with the key economic data policymakers had to consider at each meeting.

Here are five years of “dot plots” in one interactive chart, including the most recent projections released Wednesday.


Company: cnbc, Activity: cnbc, Date: 2017-12-13  Authors: christine wang, john w schoen
Keywords: news, games, cnbc, companies, sees, rate, tea, forecast, policymakers, fed, read, rates, reserve, 2018, projections, 2019, leaves, maintains, federal


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Fed’s Bullard: ‘Material risk’ of yield curve inversion late next year

Bullard said that as it stands, within a year short-term interest rates, pushed higher by Fed action, may move above long-term interest rates — an “inversion” of the yield curve that is classically taken as a signal of economic weakness. “The simplest way to avoid yield curve inversion in the near term is for policymakers to be cautious in raising the policy rate,” Bullard said in a presentation to the Arkansas Economic Development Institute. With the spread between one-year and 10-year Treasury


Bullard said that as it stands, within a year short-term interest rates, pushed higher by Fed action, may move above long-term interest rates — an “inversion” of the yield curve that is classically taken as a signal of economic weakness. “The simplest way to avoid yield curve inversion in the near term is for policymakers to be cautious in raising the policy rate,” Bullard said in a presentation to the Arkansas Economic Development Institute. With the spread between one-year and 10-year Treasury
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Company: cnbc, Activity: cnbc, Date: 2017-12-01  Authors: chris goodney, bloomberg, getty images
Keywords: news, games, cnbc, companies, rates, late, policymakers, fed, signal, rate, feds, interest, curve, inversion, material, risk, bullard, yield


Fed's Bullard: 'Material risk' of yield curve inversion late next year

St. Louis Federal Reserve President James Bullard warned on Friday of a key “bearish signal” emerging for the economy if the Fed continues raising interest rates as fast as policymakers currently intend, and called on his colleagues to move more cautiously in the drive to more normal monetary policy.

Bullard said that as it stands, within a year short-term interest rates, pushed higher by Fed action, may move above long-term interest rates — an “inversion” of the yield curve that is classically taken as a signal of economic weakness.

It is unlikely that long-term rates will move higher on their own to keep pace with the Fed’s moves on short-term rates, he said, which he felt should make the Fed slow down.

“The simplest way to avoid yield curve inversion in the near term is for policymakers to be cautious in raising the policy rate,” Bullard said in a presentation to the Arkansas Economic Development Institute.

With the spread between one-year and 10-year Treasury bonds currently around 0.73, and the latest Fed forecasts showing three rate increases next year, the yield curve could invert during 2018.

“There is a material risk…if the (Federal Open Market Committee) continues on its present course,” Bullard said. Inversion “is a naturally bearish signal…This deserves market and policymaker attention.”

Fed officials are expected to raise rates at their upcoming December meeting, and update their outlook for 2018. Weak inflation has led to division among policymakers over whether they should slow the pace of rate hikes until it is clear that prices are going to recover.

Expected inflation is a key component of long-term bond prices since investors would want securities to hold value on an inflation-adjusted or “real” basis over time. That inflation weakness is another reason the yield curve may flip from its normal slope, which rewards investors with higher interest rates on longer-term securities.

The yield curve is “not infallible” as a predictor of the economy, Bullard said, and some researchers have argued that it is losing its usefulness as an economic signal given the global decline in interest rates.

But Bullard said policymakers and investors “need to take the possibility of a yield curve inversion seriously.”


Company: cnbc, Activity: cnbc, Date: 2017-12-01  Authors: chris goodney, bloomberg, getty images
Keywords: news, games, cnbc, companies, rates, late, policymakers, fed, signal, rate, feds, interest, curve, inversion, material, risk, bullard, yield


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Gold inches down amid Fed inflation concerns

Gold prices nudged lower early Thursday, after gaining nearly one percent in the previous session on weaker U.S. economic data and concerns by some Federal Reserve policymakers about lower inflation. Spot gold was down 0.1 percent at $1,290.74 per ounce by 0109 GMT. U.S. gold futures for December delivery edged 0.1 percent lower at $1,290.70. Many Federal Reserve policymakers expect that interest rates will have to be raised in the “near term,” according to the minutes of the U.S. central bank’s


Gold prices nudged lower early Thursday, after gaining nearly one percent in the previous session on weaker U.S. economic data and concerns by some Federal Reserve policymakers about lower inflation. Spot gold was down 0.1 percent at $1,290.74 per ounce by 0109 GMT. U.S. gold futures for December delivery edged 0.1 percent lower at $1,290.70. Many Federal Reserve policymakers expect that interest rates will have to be raised in the “near term,” according to the minutes of the U.S. central bank’s
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Company: cnbc, Activity: cnbc, Date: 2017-11-22
Keywords: news, games, cnbc, companies, concerns, inflation, fed, inches, federal, meeting, policymakers, lower, minister, edged, economic, amid, reserve, gold, policy


Gold inches down amid Fed inflation concerns

Gold prices nudged lower early Thursday, after gaining nearly one percent in the previous session on weaker U.S. economic data and concerns by some Federal Reserve policymakers about lower inflation.

Spot gold was down 0.1 percent at $1,290.74 per ounce by 0109 GMT.

U.S. gold futures for December delivery edged 0.1 percent lower at $1,290.70.

Many Federal Reserve policymakers expect that interest rates will have to be raised in the “near term,” according to the minutes of the U.S. central bank’s last policy meeting released on Wednesday. However, some members expressed concern over the inflation outlook and emphasized they would be looking at upcoming economic data before deciding the timing of future rate rises.

New orders for key U.S.-made capital goods unexpectedly fell in October after three straight months of hefty gains, but a sustained increase in shipments pointed to robust business investment and economic momentum as the year winds down.

Asian shares edged ahead on Thursday as speculation the Federal Reserve might not tighten U.S. policy as aggressively as first thought slugged the dollar and boosted bonds globally.

Brexit-bound Britain slashed its economic growth forecasts and ramped up its borrowing plans going into the 2020s, but finance minister Philip Hammond announced a number of spending steps aimed at winning back voters.

The European Central Bank will reaffirm its policy stance at its December meeting, and rate-setters hope to put off debate on new moves until well into next year, five sources with direct knowledge of the discussion told Reuters.

When Theresa May visits Brussels on Friday, EU negotiators will be listening intently for signs the British prime minister is preparing to risk a domestic backlash and raise her offer to secure a Brexit deal in December.

Germany’s Social Democrats (SPD) faced pressure on Wednesday to consider offering coalition talks to Chancellor Angela Merkel’s conservatives to settle the worst political crisis in modern German history.


Company: cnbc, Activity: cnbc, Date: 2017-11-22
Keywords: news, games, cnbc, companies, concerns, inflation, fed, inches, federal, meeting, policymakers, lower, minister, edged, economic, amid, reserve, gold, policy


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Federal Reserve president says country needs more immigration to save economy

The U.S. economy faces higher deficits, reduced government benefits and near-zero interest rates unless policymakers act aggressively, Cleveland Fed President Loretta Mester said Thursday. In a speech to the Cato Institute in Washington, Mester painted a bleak picture driven in part by an aging population and lower productivity. Rising Social Security and health costs already are projected to carve a bigger hole in the federal budget, pushing the deficit to an unacceptable level. One suggestion


The U.S. economy faces higher deficits, reduced government benefits and near-zero interest rates unless policymakers act aggressively, Cleveland Fed President Loretta Mester said Thursday. In a speech to the Cato Institute in Washington, Mester painted a bleak picture driven in part by an aging population and lower productivity. Rising Social Security and health costs already are projected to carve a bigger hole in the federal budget, pushing the deficit to an unacceptable level. One suggestion
Federal Reserve president says country needs more immigration to save economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-11-16  Authors: jeff cox, dan mescon
Keywords: news, games, cnbc, companies, policies, fed, monetary, immigration, federal, needs, president, fiscal, save, policy, productivity, mester, economy, country, rates, growth, reserve, policymakers


Federal Reserve president says country needs more immigration to save economy

The U.S. economy faces higher deficits, reduced government benefits and near-zero interest rates unless policymakers act aggressively, Cleveland Fed President Loretta Mester said Thursday.

In a speech to the Cato Institute in Washington, Mester painted a bleak picture driven in part by an aging population and lower productivity. Rising Social Security and health costs already are projected to carve a bigger hole in the federal budget, pushing the deficit to an unacceptable level.

One suggestion she has to accelerate growth and address declining productivity is immigration. Her remarks took direct aim at a priority of the Trump administration to curtail the inflow of foreigners, particularly from countries with large Muslim populations.

“Policies that increase the growth and productivity of the workforce would address not only fiscal imbalances but the downward pressure on longer-run growth from demographics or other sources,” she said. “Policies that increase immigration, not reduce it, that support continuing education, that encourage R&D and innovation, and that provide incentives so people work longer should receive attention.”

Mester is one of the more hawkish members of the Fed, pushing harder for rate hikes at a central bank that has been slow to come off the cheap-money policies implemented since the fiscal crisis.

However, she pointed out that policymakers have acknowledged that they overestimated what the long-term “neutral” rate would be, or the level that is neither overly stimulative nor restrictive to growth.

In fact, she said that if Congress doesn’t take more action to control benefit costs, the days of zero interest rates and money-printing will return.

“In a world where counter-cyclical fiscal policy is constrained, business cycle volatility could rise, and monetary policy could find itself near the zero lower bound more often, potentially requiring the use of nontraditional policy tools such as asset purchases and forward guidance in order to meet monetary policymakers’ economic objectives,” she said.

In addition to the low rates, the Fed ballooned its balance sheet to $4.5 trillion through the purchase of government debt and mortgage-backed securities, in an effort to drive down lending rates and boost asset prices like stocks and corporate bonds.

The Fed has long sought help from fiscal policy to complement its monetary moves.

“If financing the funding shortfall through increased government borrowing is undesirable, raising taxes and reducing benefits or other expenditures are not very appealing either,” Mester said. “Depending on how such policies are implemented, they could ultimately hurt the economy’s longer-run growth prospects, leaving the fiscal outlook even worse.”

Mester will be a voting member of the policymaking Federal Open Market Committee next year, when the central bank also gets new members to fill the three vacancies on the board of governors.

WATCH: How the Republican tax reform bill could affect the Fed.


Company: cnbc, Activity: cnbc, Date: 2017-11-16  Authors: jeff cox, dan mescon
Keywords: news, games, cnbc, companies, policies, fed, monetary, immigration, federal, needs, president, fiscal, save, policy, productivity, mester, economy, country, rates, growth, reserve, policymakers


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Here’s how the Fed’s rate forecasts have changed over the years

To understand where the Fed thinks interest rates are headed, you have to connect the dots. Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The charts, which the Fed began publishing in 2012, have become a series of tea leaves that many investors like to read for hints about what the FOMC will do next. But those tea leaves can be hard to read in isolation. Here are five years of “dot pl


To understand where the Fed thinks interest rates are headed, you have to connect the dots. Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The charts, which the Fed began publishing in 2012, have become a series of tea leaves that many investors like to read for hints about what the FOMC will do next. But those tea leaves can be hard to read in isolation. Here are five years of “dot pl
Here’s how the Fed’s rate forecasts have changed over the years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-09-20  Authors: john w schoen
Keywords: news, games, cnbc, companies, heres, rates, interest, read, headed, feds, projections, federal, leaves, fed, forecasts, tea, rate, policymakers, changed


Here's how the Fed's rate forecasts have changed over the years

To understand where the Fed thinks interest rates are headed, you have to connect the dots.

Four times a year Federal Reserve policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The results are the central bank’s so-called dot plot — a visual representation of how many members think rates will hit a given level over the short, medium and longer run.

The charts, which the Fed began publishing in 2012, have become a series of tea leaves that many investors like to read for hints about what the FOMC will do next. But those tea leaves can be hard to read in isolation.

To give a better view of how the Fed’s thinking has changed over time, we’ve plotted the changes in the dots over the last five years, along with the key economic data policymakers had to consider at each meeting.

Here are five years of “dot plots” in one interactive chart, including the most recent projections released Wednesday.


Company: cnbc, Activity: cnbc, Date: 2017-09-20  Authors: john w schoen
Keywords: news, games, cnbc, companies, heres, rates, interest, read, headed, feds, projections, federal, leaves, fed, forecasts, tea, rate, policymakers, changed


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Wages, the last piece of jobs puzzle, may be falling into place

Wage growth has been the missing link throughout a period that has produced more than 18.5 million new jobs, including 209,000 in July. Adecco is the largest staffing firm in the world and specializes in connecting employers with workers. That’s not exactly poor, and indeed is more than 1 percentage point higher than the current inflation rate. However, it has been running below a level that makes policymakers, like those at the Federal Reserve, comfortable. The Fed is the process of gradually r


Wage growth has been the missing link throughout a period that has produced more than 18.5 million new jobs, including 209,000 in July. Adecco is the largest staffing firm in the world and specializes in connecting employers with workers. That’s not exactly poor, and indeed is more than 1 percentage point higher than the current inflation rate. However, it has been running below a level that makes policymakers, like those at the Federal Reserve, comfortable. The Fed is the process of gradually r
Wages, the last piece of jobs puzzle, may be falling into place Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-08-04  Authors: jeff cox, getty images, matthew busch, bloomberg, -bank of america merrill lynch
Keywords: news, games, cnbc, companies, jobs, place, policymakers, staffing, growth, puzzle, labor, substantial, piece, falling, looking, inflation, good, wages, hourly, glaser


Wages, the last piece of jobs puzzle, may be falling into place

Wage growth has been the missing link throughout a period that has produced more than 18.5 million new jobs, including 209,000 in July.

But Amy Glaser, who helps run Adecco Staffing, believes the befuddled policymakers, politicians and economists — not to mention the workers themselves — looking for pay to surge won’t have to wait much longer.

As she interacts with clients hungry to hire new employees, Glaser said she sees a climate where companies are going to have no choice but to start jacking up compensation in order to meet a changing climate. Adecco is the largest staffing firm in the world and specializes in connecting employers with workers.

“The demand for labor in this market is intensely high,” she said. “In every discussion I’m having with my clients, wages are the No. 1 topic. I expect a substantial uptick in the average hourly earnings potential.”

So far, substantial moves in the metric Glaser mentioned have been elusive.

In the most recent report on nonfarm payrolls growth, issued Friday, the Bureau of Labor Statistics said average hourly earnings rose 9 cents an hour, good for a 0.3 percent monthly gain that translates into a 2.53 percent annualized increase.

That’s not exactly poor, and indeed is more than 1 percentage point higher than the current inflation rate. However, it has been running below a level that makes policymakers, like those at the Federal Reserve, comfortable. The Fed is the process of gradually raising interest rates, but is looking for stronger signs of “good” inflation to bolster the case for policy normalization after years of cheap money used to stimulate the economy.


Company: cnbc, Activity: cnbc, Date: 2017-08-04  Authors: jeff cox, getty images, matthew busch, bloomberg, -bank of america merrill lynch
Keywords: news, games, cnbc, companies, jobs, place, policymakers, staffing, growth, puzzle, labor, substantial, piece, falling, looking, inflation, good, wages, hourly, glaser


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