Wall Street closes significantly higher on expectations of Fed easing
U.S. equities rose on Monday, building on gains from the previous week, as indications of economic slowdown suggested that the Fed’s aggressive approach of cooling the economy and so containing decades-high inflation is starting to have an impact.The opening session of a week chock full of important economic data and high-profile company earnings saw gains […]
Barclays state the Fed might need to halt balance sheet shortening in 2023
According to a Barclays analysis, the Federal Reserve may need to slow down or halt reducing its almost $9 trillion balance sheet earlier than many people currently anticipate. The current rate of the drawdown is likely to need to alter in the beginning half of next year, the investment company’s analysts noted this week. That’s because, […]
Fed’s Powell rides off to Jackson Hole; a blast from the past
At this year’s central banking summit hosted in Jackson Hole Wyoming, Federal Reserve Chair Jerome Powell will deliver a speech on inflation and interest rates in a very different manner from the reassuring one he employed at the same gathering only one year prior. At the time, Powell presented a number of charts to show […]
Dollar reaches a one-month high as Fed officials discuss rate increases
In the lead-up to their important Jackson Hole symposium, Federal Reserve officials proceeded to stress the necessity for additional interest rate increases, pushing the U.S. dollar to a new one-month high versus major rivals on Friday. The dollar index increased 0.14% to 107.63 from its previous high of 107.72, reached on July 18. This week, […]
Fed minutes may hint justification for the upcoming jumbo rate hike
Officials from the Federal Reserve are adamant that they will keep increasing interest rates until soaring inflation is brought under control, and the minutes from their policy meeting on July 26–27, which will be released on Wednesday, may reveal just how aggressive they want to be. The minutes, which are scheduled for release at 2 […]
U.S. banks are struggling with a trillion-dollar reverse repo
The massive amounts of overnight cash stored at the Federal Reserve each day might cause banks a lot of trouble by straining their accounting records and limiting their ability to lend. A wide range of market participants has flocked to the Fed’s reverse repurchase facility (RRP), which has helped clean up excess flexibility in the […]
Fed to maintain its July 75 bps spike; 40% likelihood of recession
To combat persistently rising inflation as the probability of a recession over the coming year climbs to 40%, the U.S. Federal Reserve would decide against making a larger change at its meeting next week. This is according to a poll of analysts. Another four-decade high of 9.1 percent was reached in June, fueling hopes that […]
U.S. yield curve inversion, a note-worthy phenomenon
Investors continue to hope that the Federal Reserve’s combative move to fend against hiking inflation wouldn’t pressure the economy into entering a recession, although that is likely. There’s an occurrence called the yield curve inversion, that has a remarkable history of taking the crown over U.S. recessions. What this phenomenon meant with a case in […]
Fed’s stress test on bank health results roll out on Thursday
Followed religiously, every twelve months the U.S. Federal Reserve has its banks run through a complete health check. This year, the results are set to drop on Thursday which is right ahead of us. This idea first surfaced in the time between 2007-2008 when a major financial crisis couldn’t be averted due to the poor […]
Fed’s Waller says now is the time to hit it on raising rates
Federal Reserve Governor Christopher Waller said that it is time to “hit it” on raising interest rates to deal with inflation that is too high and a labor market, with nearly two open jobs for every job seeker, that is out of whack. Waller told the Economic Club of Minnesota that it is time to […]