US Treasury yields fall as traders look ahead to data, bond auctions

U.S. government debt prices rose on Monday as traders anticipated upcoming economic data and bond auctions. ET, the yield on the benchmark 10-year Treasury note sank to around 3.196 percent, while the yield on the 30-year Treasury bond fell to 3.375 percent. Yields have hit multi-year highs in the last few weeks as a strong U.S. economy has spurred the Federal Reserve in the direction of higher interest rates. On the data front, the Chicago Federal Reserve will release national activity index fi


U.S. government debt prices rose on Monday as traders anticipated upcoming economic data and bond auctions. ET, the yield on the benchmark 10-year Treasury note sank to around 3.196 percent, while the yield on the 30-year Treasury bond fell to 3.375 percent. Yields have hit multi-year highs in the last few weeks as a strong U.S. economy has spurred the Federal Reserve in the direction of higher interest rates. On the data front, the Chicago Federal Reserve will release national activity index fi
US Treasury yields fall as traders look ahead to data, bond auctions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: ryan browne
Keywords: news, cnbc, companies, release, interest, auctions, bond, reserve, et, data, ahead, yields, rates, fall, federal, look, treasury, traders, yield


US Treasury yields fall as traders look ahead to data, bond auctions

U.S. government debt prices rose on Monday as traders anticipated upcoming economic data and bond auctions.

At around 5:00 a.m. ET, the yield on the benchmark 10-year Treasury note sank to around 3.196 percent, while the yield on the 30-year Treasury bond fell to 3.375 percent. Bond yields move inversely to prices.

Yields have hit multi-year highs in the last few weeks as a strong U.S. economy has spurred the Federal Reserve in the direction of higher interest rates. The U.S. central bank last week released minutes that showed clear hawkish sentiment, with members confident in the Fed’s interest rate path.

On Monday, fears of rates increasing too high too fast appeared to soften. In equities, traders switched focus to earnings, with Halliburton, Hasbro, Kimberly-Clark and Polaris Industries all set to release their respective financial results before the bell.

On the data front, the Chicago Federal Reserve will release national activity index figures at 8:30 a.m. ET.

Meanwhile, $45 billion in three-month bills and $39 billion of six-month bills will be auctioned Monday at 11:30 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: ryan browne
Keywords: news, cnbc, companies, release, interest, auctions, bond, reserve, et, data, ahead, yields, rates, fall, federal, look, treasury, traders, yield


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Longtime bull Jeremy Siegel urges caution, says stocks could see a flat 2019

Why stocks will be best performing asset for 3-5 years: Wharton’s Jeremy Siegel 2 Hours Ago | 03:02Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019. However, Siegel said he still favors stocks long term, adding it will be the best performing asset for investors looking out three to four years from now. “The sell-off in emerging markets has presented unbelievable value” in the near term, Siegel said. The S&P and


Why stocks will be best performing asset for 3-5 years: Wharton’s Jeremy Siegel 2 Hours Ago | 03:02Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019. However, Siegel said he still favors stocks long term, adding it will be the best performing asset for investors looking out three to four years from now. “The sell-off in emerging markets has presented unbelievable value” in the near term, Siegel said. The S&P and
Longtime bull Jeremy Siegel urges caution, says stocks could see a flat 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, performing, caution, nasdaq, sp, siegel, investors, term, 2019, urges, month, rates, stock, bull, jeremy, longtime, flat, stocks


Longtime bull Jeremy Siegel urges caution, says stocks could see a flat 2019

Why stocks will be best performing asset for 3-5 years: Wharton’s Jeremy Siegel 2 Hours Ago | 03:02

Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019.

“There are challenges that we face now,” including rising interest rates, the midterm elections and U.S.-China trade tensions, the Wharton School finance professor said in a CNBC “Squawk Box” interview on Monday. “I’m looking flattish” for the coming year, he added.

However, Siegel said he still favors stocks long term, adding it will be the best performing asset for investors looking out three to four years from now.

“The sell-off in emerging markets has presented unbelievable value” in the near term, Siegel said.

U.S. stock were higher in early trading Monday. Last week, the Dow Jones Industrial Average and S&P 500 managed to break three-week losing streaks, but the Nasdaq fell for a third straight week.

The S&P and Nasdaq are on pace to post their largest monthly losses since January 2016 after the Oct. 10-11 plunge.

Concerns that Federal Reserve Chairman Jerome Powell might raise rates more than forecast has fueled stock declines and criticisms from President Donald Trump.

The central bank has hiked rates three times this year, and one more is expected in December.

Siegel told CNBC he worries how the Fed can engineer “a soft landing” as it continues to gradually increase rates in an effort to preserve a steady economy.

Siegel predicted last month the stock market could be headed for another bubble, like the one investors experienced in January. In early February, stocks plummeted and eventually bottomed later that month.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, performing, caution, nasdaq, sp, siegel, investors, term, 2019, urges, month, rates, stock, bull, jeremy, longtime, flat, stocks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Rates rise for the week after Fed vows to stay the course with hikes

U.S. government debt yields were set for week-to-date gains Friday morning following comments from the Federal Reserve earlier in the week and persistent strength in employment data. Government debt rates rose throughout the week after the Fed’s latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of “excesses” in financial markets. The yield on the benchmark 10-year Treasury note was higher at around 3.192 percent at 10:44 a.m. ET, while the y


U.S. government debt yields were set for week-to-date gains Friday morning following comments from the Federal Reserve earlier in the week and persistent strength in employment data. Government debt rates rose throughout the week after the Fed’s latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of “excesses” in financial markets. The yield on the benchmark 10-year Treasury note was higher at around 3.192 percent at 10:44 a.m. ET, while the y
Rates rise for the week after Fed vows to stay the course with hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: thomas franck, spencer platt, getty images
Keywords: news, cnbc, companies, showed, officials, hikes, rate, members, yield, stay, vows, rise, restrictive, week, yields, rates, treasury, fed, course


Rates rise for the week after Fed vows to stay the course with hikes

U.S. government debt yields were set for week-to-date gains Friday morning following comments from the Federal Reserve earlier in the week and persistent strength in employment data.

Government debt rates rose throughout the week after the Fed’s latest meeting minutes showed members were confident in the current path of interest rate hikes and wary of “excesses” in financial markets.

The yield on the benchmark 10-year Treasury note was higher at around 3.192 percent at 10:44 a.m. ET, while the yield on the 30-year Treasury bond was higher at 3.374 percent. Bond yields move inversely to prices.

Minutes of the central bank’s September meeting released Wednesday showed officials discussing plans to continue with its planned rate hikes, with some members suggesting there could come a time when the committee could exceed a neutral level in favor of more restrictive policy.

Federal Open Market Committee officials would likely use restrictive rates to clamp down on inflation and to address any imbalances the Fed sees in the financial markets.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: thomas franck, spencer platt, getty images
Keywords: news, cnbc, companies, showed, officials, hikes, rate, members, yield, stay, vows, rise, restrictive, week, yields, rates, treasury, fed, course


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Cramer’s memo to the Fed: Consider the jobs being wiped out by technology before hiking rates

The Federal Reserve isn’t paying enough attention to the jobs being wiped out by technological innovation, CNBC’s Jim Cramer said Friday. There is indeed a “skills mismatch” between the jobs at risk of being lost and the jobs being created, he said. “That’s why I think Fed Chief Jay Powell should try to [wait] things out. The workforce that’s being destroyed by tech is not easily slotted back into the industries that are desperate for labor. “Memo to Fed: there’s more slack in the labor market t


The Federal Reserve isn’t paying enough attention to the jobs being wiped out by technological innovation, CNBC’s Jim Cramer said Friday. There is indeed a “skills mismatch” between the jobs at risk of being lost and the jobs being created, he said. “That’s why I think Fed Chief Jay Powell should try to [wait] things out. The workforce that’s being destroyed by tech is not easily slotted back into the industries that are desperate for labor. “Memo to Fed: there’s more slack in the labor market t
Cramer’s memo to the Fed: Consider the jobs being wiped out by technology before hiking rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, workforce, consider, memo, wiped, inflation, jobs, going, need, think, fed, rate, labor, technology, rates, hiking, cramers, thats


Cramer's memo to the Fed: Consider the jobs being wiped out by technology before hiking rates

The Federal Reserve isn’t paying enough attention to the jobs being wiped out by technological innovation, CNBC’s Jim Cramer said Friday.

“Right at the moment when Silicon Valley is laying waste to white-collar jobs and many factory positions — that’s why companies love the cloud, it lets them fire people — the Fed is obsessed with the disaster that is full employment,” the “Mad Money” host said.

“Never mind that we’re not at full employment,” he added. “The labor force participation rate is below 63 percent; it was above 66 percent before the financial crisis.”

Reflecting on his recent trip to San Francisco, Cramer once again lamented that the Fed was so eager to raise interest rates, which it does in an effort to combat inflation, without considering the less obvious forces slowly transforming the U.S. employment landscape.

“The cloud isn’t shutting down factories. It’s not driving companies out of business like we’re seeing with Sears,” he said. “It’s a subtle displacement, but given time, I think it can do a great deal to keep inflation in check.”

In September, the World Economic Forum released a report predicting that by 2025, there would be more machines in the workforce than humans — but stipulated that 58 million net new jobs could still be created in the next five years to offset the shift.

A January report by the World Economic Forum and Boston Consulting Group said that almost 1 million U.S. workers would see their jobs wiped out entirely by 2026.

Cramer understood the pitfalls of letting tech-led disruption play out. There is indeed a “skills mismatch” between the jobs at risk of being lost and the jobs being created, he said.

“The people who are losing their jobs because of software from Workday or Salesforce aren’t going to pick up and start making RVs in Indiana,” he said. “They’re aren’t going to serve tables at a casual dining spot in New York City. They will not pop up in the Permian Basin.”

But if there was truly a shortage of workers, then wages would be skyrocketing to keep people in their jobs and the number of jobs being created each month — currently in the hundreds of thousands — would drop dramatically, Cramer said.

“That is not happening now,” he said. “That’s why I think Fed Chief Jay Powell should try to [wait] things out. … The workforce that’s being destroyed by tech is not easily slotted back into the industries that are desperate for labor. But if you wait long enough, I think it’s going to happen naturally and organically. People need to pay off their mortgages. They need to pay their car loans. They need to save for retirement. So they’ll ultimately accept retraining by necessity.”

The “Mad Money” added that if he was a member of the Fed, he’d “organize a field trip” to major tech companies to show central bank officials that the trend of digitization is “doing a better job of keeping inflation in check than the blunt instrument of rate hikes ever could.”

“Every minute, there’s someone in Silicon Valley who’s trying to think of a way to eliminate waste and overhead and duplication,” he said. “Memo to Fed: there’s more slack in the labor market than it seems thanks to all this technological disruption and dislocation.”

“You just need to give all these displaced people time and they’ll come back to the workforce in places where they’re most needed,” he continued. “In other words, you can stop and take a moment to reassess after that next rate hike because, given what I just traced out, prudence dictates giving these obsoleted-by-tech people … another chance at a job.”


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, workforce, consider, memo, wiped, inflation, jobs, going, need, think, fed, rate, labor, technology, rates, hiking, cramers, thats


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Existing home sales fall for sixth straight month in September

The National Association of Realtors said on Friday that existing home sales dropped 3.4 percent to a seasonally adjusted annual rate of 5.15 million units last month. Home sales have now fallen for six straight months. Sales dropped the most in the South and the decline in the West left sales there down 12.2 percent from a year earlier. Economists polled by Reuters had forecast existing home sales falling to 5.30 million from a previously reported 5.34 million. Existing home sales make up about


The National Association of Realtors said on Friday that existing home sales dropped 3.4 percent to a seasonally adjusted annual rate of 5.15 million units last month. Home sales have now fallen for six straight months. Sales dropped the most in the South and the decline in the West left sales there down 12.2 percent from a year earlier. Economists polled by Reuters had forecast existing home sales falling to 5.30 million from a previously reported 5.34 million. Existing home sales make up about
Existing home sales fall for sixth straight month in September Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19
Keywords: news, cnbc, companies, existing, sixth, months, rising, straight, costs, sales, expected, million, month, rates, fall, supply, market


Existing home sales fall for sixth straight month in September

U.S. home sales fell in September by the most in over two years as the housing market continued to struggle despite strength across the broader economy.

The National Association of Realtors said on Friday that existing home sales dropped 3.4 percent to a seasonally adjusted annual rate of 5.15 million units last month.

Home sales have now fallen for six straight months. A dearth of properties for sale has pushed up prices, sidelining many would-be homeowners. Sales dropped the most in the South and the decline in the West left sales there down 12.2 percent from a year earlier.

NAR Chief Economist Lawrence Yun said the overall decline appeared related to a rise in interest rates.

Supply has also been constrained by rising building material costs as well as land and labor shortages, while rising mortgage rates are expected to slow demand.

The Federal Reserve raised borrowing costs in September for the third time this year and is widely expected to hike rates again in December.

Economists polled by Reuters had forecast existing home sales falling to 5.30 million from a previously reported 5.34 million. Existing home sales make up about 90 percent of U.S. home sales.

There were 1.88 million homes on the market in September, an increase of 1.1 percent from a year ago.

At September’s sales pace, it would take 4.4 months to clear the current inventory. A supply of six to seven months is viewed as a healthy balance between supply and demand.

The median house price increased 4.2 percent from one year ago to $258,100 in September.

WATCH:The hidden costs of buying a home


Company: cnbc, Activity: cnbc, Date: 2018-10-19
Keywords: news, cnbc, companies, existing, sixth, months, rising, straight, costs, sales, expected, million, month, rates, fall, supply, market


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold posts third weekly gain as stocks dip

Every Federal Reserve policy maker backed raising interest rates last month, according to September meeting minutes released on Wednesday. Rising interest rates are normally negative for gold since they could boost the dollar and also increase the opportunity cost of holding non-yielding bullion. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF (exchange traded fund) inflows.” Holdings of the SPDR Gold Tr


Every Federal Reserve policy maker backed raising interest rates last month, according to September meeting minutes released on Wednesday. Rising interest rates are normally negative for gold since they could boost the dollar and also increase the opportunity cost of holding non-yielding bullion. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF (exchange traded fund) inflows.” Holdings of the SPDR Gold Tr
Gold posts third weekly gain as stocks dip Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19
Keywords: news, cnbc, companies, really, posts, weekly, stock, interest, markets, technical, gold, gained, week, investors, gain, rates, stocks, dip


Gold posts third weekly gain as stocks dip

Gold prices edged up on Friday, the metal’s third week of gains as weaker stock markets spurred investors to seek refuge in bullion, which also gained technical momentum after scaling major milestones.

Spot gold added 0.14 percent to $1,226.66 per ounce. The metal gained 0.7 percent this week, after hitting a 2-1/2-month high at $1,233.26 on Monday.

U.S. gold futures were settled down $1.40 at $1,228.70.

“Gold has done really well to hold up here, given the Fed was really hawkish. Sensitivity to equity markets is helping gold at the moment,” Macquarie commodity strategist Matthew Turner said.

“We are entering a new paradigm, where any further rate hike could be a sign that the economy is overheating a bit, which should be more positive for gold and problematic for equities.”

Every Federal Reserve policy maker backed raising interest rates last month, according to September meeting minutes released on Wednesday.

Rising interest rates are normally negative for gold since they could boost the dollar and also increase the opportunity cost of holding non-yielding bullion.

In wider markets, European stocks tumbled again as a showdown between Italy’s government and the European Union loomed.

“Today’s attempt by gold to lastingly exceed the 100-day moving average looks promising. If it succeeds, technical follow-up buying should push the gold price further up,” Commerzbank analysts said in a note.

“At the same time, gold is resisting the firm U.S. dollar. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF (exchange traded fund) inflows.”

Holdings of the SPDR Gold Trust, the largest gold-backed ETF, have gained 2.5 percent in the past two weeks.

The recent sell-off in global stock markets has boosted gold’s appeal, as some investors see it as a safe store of value during political and economic uncertainty.


Company: cnbc, Activity: cnbc, Date: 2018-10-19
Keywords: news, cnbc, companies, really, posts, weekly, stock, interest, markets, technical, gold, gained, week, investors, gain, rates, stocks, dip


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold holds steady amid firmer dollar

Gold prices held steady early Thursday, after dipping in the previous session on a firmer dollar after minutes of the Federal Reserve’s September meeting reinforced expectations of a tighter U.S. monetary policy. Spot gold was up 0.1 percent at $1,223.13 an ounce at 0107 GMT. U.S. gold futures were down 0.1 percent at $1,226.40 an ounce. The dollar traded stronger versus its major peers on Thursday after minutes from the U.S. Federal Reserve’s September meeting affirmed expectations that the cen


Gold prices held steady early Thursday, after dipping in the previous session on a firmer dollar after minutes of the Federal Reserve’s September meeting reinforced expectations of a tighter U.S. monetary policy. Spot gold was up 0.1 percent at $1,223.13 an ounce at 0107 GMT. U.S. gold futures were down 0.1 percent at $1,226.40 an ounce. The dollar traded stronger versus its major peers on Thursday after minutes from the U.S. Federal Reserve’s September meeting affirmed expectations that the cen
Gold holds steady amid firmer dollar Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18
Keywords: news, cnbc, companies, saudi, steady, united, amid, holds, firmer, eu, gold, dollar, meeting, bank, minutes, reserves, interest, rates


Gold holds steady amid firmer dollar

Gold prices held steady early Thursday, after dipping in the previous session on a firmer dollar after minutes of the Federal Reserve’s September meeting reinforced expectations of a tighter U.S. monetary policy.

Spot gold was up 0.1 percent at $1,223.13 an ounce at 0107 GMT. On Monday, it touched its highest since July 26 at $1,233.26 an ounce.

U.S. gold futures were down 0.1 percent at $1,226.40 an ounce.

The dollar traded stronger versus its major peers on Thursday after minutes from the U.S. Federal Reserve’s September meeting affirmed expectations that the central bank is likely to continue raising interest rates this year.

Fed policymakers are largely united on the need to raise borrowing costs further, minutes from their most recent policy meeting show, despite U.S. President Donald Trump’s view that interest rate hikes have already gone too far.

White House economic advisor Larry Kudlow said on Wednesday that Trump was not demanding a policy change after heaping more criticism on the Fed on Tuesday, when he called rising U.S. interest rates his “biggest threat.”

Trump said on Wednesday he did not want to abandon close ally Saudi Arabia over the disappearance of a Saudi journalist and government critic, and he needed to see evidence to prove Turkish claims he was killed by Saudi agents.

U.S. homebuilding dropped more than expected in September as construction activity in the South fell by the most in nearly three years, likely held down by Hurricane Florence.

Asian stocks edged lower on Thursday, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.3 percent.

China’s new bank loans rebounded in September after dipping in the two previous months, central bank data showed, but overall credit conditions stayed tight in an economy chilled by an ongoing tariff war with the United States.

British Prime Minister Theresa May assured EU leaders in Brussels on Wednesday that she can still reach a Brexit deal, avoiding a showdown over stalled talks as Brussels stepped up planning for a failure of negotiations.

The commissioner for the EU budget, Guenther Oettinger, on Wednesday denied a media report saying the EU Commission had already decided to reject Italy’s draft budget for next year.


Company: cnbc, Activity: cnbc, Date: 2018-10-18
Keywords: news, cnbc, companies, saudi, steady, united, amid, holds, firmer, eu, gold, dollar, meeting, bank, minutes, reserves, interest, rates


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Rates retreat as investors seek safety amid Draghi comments, equity sell-off

Bond investors have underscored robust economic data, moderate inflation and a glut of debt issuance as reasons for the rising rates in recent weeks. This is not a Fed that’s going to slow down in any way,” said Tom di Galoma, head of Treasury trading at Seaport Global Holdings. “The Fed is continually worried that the economy is going to overheat and that’s probably one of the biggest issues. Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 210,000 for the


Bond investors have underscored robust economic data, moderate inflation and a glut of debt issuance as reasons for the rising rates in recent weeks. This is not a Fed that’s going to slow down in any way,” said Tom di Galoma, head of Treasury trading at Seaport Global Holdings. “The Fed is continually worried that the economy is going to overheat and that’s probably one of the biggest issues. Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 210,000 for the
Rates retreat as investors seek safety amid Draghi comments, equity sell-off Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: thomas franck, richard drew
Keywords: news, cnbc, companies, retreat, investors, safety, equity, reported, comments, seek, week, rate, unemployment, thats, rates, region, amid, recent, fed, selloff, draghi, way


Rates retreat as investors seek safety amid Draghi comments, equity sell-off

Bond investors have underscored robust economic data, moderate inflation and a glut of debt issuance as reasons for the rising rates in recent weeks. Recent jobs reports, for example, suggest that the labor market is near or beyond full employment and show that average hourly earnings are starting to trend higher.

That could be a worry for the Fed in its attempts to keep inflation under control. The central bank announced its third quarter-point increase to the federal funds rate in September. Fed Chair Jerome Powell’s comments earlier in the month that the federal funds rate remains “a long way from neutral” and could be lifted to restrictive levels sparked a bout of volatility in the markets.

“I look at the Fed’s minutes and see nothing but hawkish things. This is not a Fed that’s going to slow down in any way,” said Tom di Galoma, head of Treasury trading at Seaport Global Holdings.

“The Fed is continually worried that the economy is going to overheat and that’s probably one of the biggest issues. … I also think the Fed’s trying to get rates higher in case of a possible slowdown in the next few years so they can reaction with monetary policy,” he added.

The bond trader said he expects the Fed to hike rates “at least three more times,” predicting rate adjustments in December 2018 as well as in March and June of 2019. Powell has overseen three rate hikes since taking over for predecessor Janet Yellen earlier this year.

New applications for unemployment benefits dropped in the previous week and the number of Americans on jobless rolls returned to levels not seen since 1973, the Labor Department reported Thursday.

Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 210,000 for the week ended Oct. 13. Data for the prior week was revised to show 1,000 more applications received than previously reported. Claims fell to 202,000 during the week ended Sept. 15, the lowest level since November 1969.

The Philadelphia Fed found its business conditions index for the mid-Atlantic region slipped to a reading of 22.2 in October from 22.9 in September thanks to a decline in new orders. Its survey reported higher employment at factories in the region, with more than 30 percent of responding firms saying they had increased payrolls.


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: thomas franck, richard drew
Keywords: news, cnbc, companies, retreat, investors, safety, equity, reported, comments, seek, week, rate, unemployment, thats, rates, region, amid, recent, fed, selloff, draghi, way


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Fed will ultimately push the US into recession, strategist says

The Federal Reserve will push the United States economy into recession if it follows on its current interest rate path, according to Rabobank. Earlier this month, Trump said the Fed is going “loco,” openly criticized Fed Chairman Jerome Powell, and asserted that higher rates are the single biggest threat to the economic recovery. Lyn Graham-Taylor, senior fixed income strategist at Rabobank, told CNBC’s “Street Signs” on Thursday that Trump may have a point. “We think the Fed will ultimately pus


The Federal Reserve will push the United States economy into recession if it follows on its current interest rate path, according to Rabobank. Earlier this month, Trump said the Fed is going “loco,” openly criticized Fed Chairman Jerome Powell, and asserted that higher rates are the single biggest threat to the economic recovery. Lyn Graham-Taylor, senior fixed income strategist at Rabobank, told CNBC’s “Street Signs” on Thursday that Trump may have a point. “We think the Fed will ultimately pus
Fed will ultimately push the US into recession, strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: david reid
Keywords: news, cnbc, companies, path, recession, yield, interest, push, rate, ultimately, trump, rates, federal, strategist, fed


Fed will ultimately push the US into recession, strategist says

The Federal Reserve will push the United States economy into recession if it follows on its current interest rate path, according to Rabobank.

A summary of the Sept. 25-26 Federal Open Market Committee (FOMC) session was released Wednesday which pointed to a continued willingness by the U.S. central bank to gradually increase interest rates.

The Fed’s indication that it will continue raising rates comes in the face of ongoing criticism from President Donald Trump. Earlier this month, Trump said the Fed is going “loco,” openly criticized Fed Chairman Jerome Powell, and asserted that higher rates are the single biggest threat to the economic recovery.

Lyn Graham-Taylor, senior fixed income strategist at Rabobank, told CNBC’s “Street Signs” on Thursday that Trump may have a point.

“We think the Fed will ultimately push the U.S. into recession by following this path,” the analyst said.

The federal funds rate, which helps to dictate borrowing costs across the U.S. economy, was raised to sit between 2 and 2.25 percent on September 26, 2018. Policymakers see one more rate hike this year, 3 increases in 2019 and 1 in 2020.

Graham-Taylor said he expected a U.S. recession within the “next couple of years” and that researchers at his bank were taking cues from a flattening of the yield curve.

A flat yield curve occurs when the yield (return) on longer dated debt reduces to levels nearer that of shorter-dated bonds. It can be indicative of a lack of confidence in the medium to long-term of an economy.

In recent weeks, the yield curve has actually steepened but Graham-Taylor said, in this instance that was related to uncertainty, rather than investor confidence in the future.

The analyst said the Fed would probably “overhike” with just two more rate rises and that would be enough to trigger an economic downturn.


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: david reid
Keywords: news, cnbc, companies, path, recession, yield, interest, push, rate, ultimately, trump, rates, federal, strategist, fed


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Cramer: The amazing job market is not the ‘ticking time bomb’ Fed Chair Powell seems to think it is

The current amazingly strong job market is not going to cause the worrisome inflation that Federal Reserve Chairman Jerome Powell seems to think it will, Cramer argued Thursday on “Squawk on the “Street.” “[Powell] feels full employment, I think, is a ticking time bomb. Those remarks, coupled with projections out after the September Fed meeting, about an aggressive path higher for rates next year, knocked Wall Street down about 4 percent last week. On Wednesday, the minutes of last month’s Fed m


The current amazingly strong job market is not going to cause the worrisome inflation that Federal Reserve Chairman Jerome Powell seems to think it will, Cramer argued Thursday on “Squawk on the “Street.” “[Powell] feels full employment, I think, is a ticking time bomb. Those remarks, coupled with projections out after the September Fed meeting, about an aggressive path higher for rates next year, knocked Wall Street down about 4 percent last week. On Wednesday, the minutes of last month’s Fed m
Cramer: The amazing job market is not the ‘ticking time bomb’ Fed Chair Powell seems to think it is Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: matthew j belvedere, scott mlyn
Keywords: news, cnbc, companies, chair, companies, path, higher, street, rate, powell, amazing, bomb, rates, cramer, job, meeting, think, ticking, fed, market


Cramer: The amazing job market is not the 'ticking time bomb' Fed Chair Powell seems to think it is

The idea of full employment — a jobless rate so low that companies struggle to find and hire workers — is “fantastic for our great country,” according to CNBC’s Jim Cramer.

The current amazingly strong job market is not going to cause the worrisome inflation that Federal Reserve Chairman Jerome Powell seems to think it will, Cramer argued Thursday on “Squawk on the “Street.” A tighter supply of people looking for work tends to force companies to pay higher wages, which can be passed along to consumers in the form of higher prices.

“[Powell] feels full employment, I think, is a ticking time bomb. I think it’s fantastic for our great country,” said Cramer, who’s recently made no secret that he believes the Fed’s projected path for interest rate hikes is dead wrong given signals that economic growth may slow next year.

Cramer believes that companies won’t be able to raise prices into, what he sees as, inevitable slower growth no matter how much their labor costs go up. Therefore, the “Mad Money” host thinks, Fed officials should pause their rate hikes until they can get a better handle on the future of the economy by waiting for more data.

The stock market has been under pressure and prone to more volatility since Powell, earlier this month, said rates were a “long way” from neutral, a level where they’re neither restrictive nor accommodative.

Those remarks, coupled with projections out after the September Fed meeting, about an aggressive path higher for rates next year, knocked Wall Street down about 4 percent last week.

On Wednesday, the minutes of last month’s Fed meeting were released, giving a clearer signal that central bankers remain convinced that continuing to gradually increase rates is the best formula to preserve a steady economy.

The Fed has raised rates three times this year, with another one expected in December.

— CNBC’s Jeff Cox contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: matthew j belvedere, scott mlyn
Keywords: news, cnbc, companies, chair, companies, path, higher, street, rate, powell, amazing, bomb, rates, cramer, job, meeting, think, ticking, fed, market


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post