DIRS.INFO The most relevant business & tech news

☆ Fed's Kashkari raises prospect of zero rate cuts — but Goldman says that would be 'very surprising'
▼ + stars: | 2024-04-05 | by ( Sam Meredith | In Samuelmeredith | ) www.cnbc.com time to read: +1 min

Goldman Sachs Chief Economist Jan Hatzius on Friday said he still expects the Federal Reserve to implement three interest rate cuts, adding that he would be "very surprised" if the U.S. central bank ultimately decided no trims at all were necessary. His comments come shortly after Minneapolis Fed President Neel Kashkari became the latest high-profile official to float the possibility of zero rate cuts before the year's end, if inflation remained sticky. "If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all," Kashkari said on Thursday during an interview with Pensions & Investments. Separately, Fed Chair Jerome Powell said earlier in the week that it would take a while for policymakers to evaluate the current state of inflation, leaving the timing of potential interest rate cuts uncertain. Speaking to CNBC's Steve Sedgwick on the sidelines of the Ambrosetti Forum on Friday, Goldman Sachs' Hatzius said he was bullish on the outlook for the U.S. economy.

Persons: Goldman, Jan Hatzius, Neel Kashkari, Kashkari, Jerome Powell, Steve Sedgwick, Goldman Sachs, Hatzius, I'm, we've Organizations: Reserve, Minneapolis, Pensions, Investments Locations: U.S

☆ Fed's Kashkari backs sentiment that policymakers can take their time cutting interest rates
▼ + stars: | 2024-02-05 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, during an interview in New York on Nov. 7, 2023. Interest rates running at their highest levels in about 23 years are not hurting the economy and could buy policymakers more time before deciding whether to cut, Minneapolis Federal Reserve President Neel Kashkari said Monday. In an essay released on the central bank's website, Kashkari said economic developments have shown that Fed policy is not as restrictive on growth as it appears on the surface. That means the longer-run "neutral" rate, or the level that is neither restrictive nor stimulative, is probably higher than before the Covid-19 pandemic. Markets have been betting on an aggressive move lower, but recent statements from central bank officials indicate little need to hurry.

Persons: Neel Kashkari, Kashkari Organizations: Federal Reserve Bank of Minneapolis, Minneapolis Federal Locations: New York

☆ Morning Bid: A bond bounce, or a bull trap?
▼ + stars: | 2023-10-05 | by ( ) www.reuters.com time to read: +2 min

[1/3] Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt, Germany July 29, 2015. REUTERS/Remote/Pawel Kopczynski/File photo Acquire Licensing RightsA look at the day ahead in European and global markets from Tom WestbrookRelief extended from Wall Street to Marunouchi on Thursday, with bond yields and the dollar down further and stock markets stabilising. A cooler-than-expected U.S. private payrolls report and Wednesday's 5% drop in crude oil prices have helped. The oil slump was particularly noteworthy as the biggest in more than a year, pushing the price below where it was a year ago. The yen has also risen to the strong side of 149-per-dollar, giving traders something of a break from white-knuckling uncertainty over possible intervention by Japan.

Persons: DAX, Westbrook, ECB's, Fed's Kashkari, Daly, Mester, Tom Westbrook, Edmund Klamann Organizations: REUTERS, Treasury, Friday's, Thomson Locations: Frankfurt, Germany, Marunouchi, Japan, China, Asia, South Korea, Philippines, Friday's U.S, Barr

"I'm one of those folks," said Kashkari, who is considered one of the Fed's more hawkish policymakers. Kashkari said that if inflation cools next year as expected, the Fed will need to cut rates to keep policy from tightening too much. But he also said he has been surprised by how well consumer spending has held up despite the Fed's rate hikes so far. "Everybody on the Federal Open Market Committee is committed" to bringing inflation back down to the Fed's 2% target, he said. Inflation by the Fed's preferred measure was 3.3% in July.

Persons: Neel Kashkari, Mike Segar, Kashkari, Ann Saphir, Himani Sarkar, Muralikumar Organizations: Federal Reserve Bank of Minneapolis, Reuters, REUTERS, Minneapolis Federal Reserve Bank, Wharton School of Business, Fed, U.S, Federal, Thomson Locations: New York City , New York, U.S, Minneapolis

☆ Regional banks slide after Fed's Kashkari advocates 'significantly further' capital regulation
▼ + stars: | 2023-08-15 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, speaks during an interview with Reuters in New York City, New York, May 22, 2023. Minneapolis Federal Reserve President Neel Kashkari favors getting tougher on regional banks, following a crisis earlier this year that he said may not be over. Regional bank shares fell as Kashkari spoke. Those banks holding longer-dated Treasurys faced capital losses as rates went up and bond prices fell. Should the Fed have to keep raising rates, that could affect banks in the same situation.

Persons: Neel Kashkari, Kashkari, Treasurys Organizations: Federal Reserve Bank of Minneapolis, Reuters, Minneapolis Federal, Regional Banking, Troubled Asset Relief, Bank Locations: New York City , New York, Minneapolis

☆ In the Market: Amid the calm, the Fed brews the next storm
▼ + stars: | 2023-05-29 | by ( Paritosh Bansal | ) www.reuters.com time to read: +4 min

Earlier this month, Chairman Jay Powell said the Fed's monetary policy and financial stability tools were "working well together," allowing it to support banks and pursue price stability. But several people in the market believe not only is the regional banking sector still under stress, multiple other risks to financial stability also remain. Tighter monetary policy could well cause them to blow up or worsen the impact of other shocks, such as debt ceiling negotiations. "The Fed has no desire to conduct monetary policy through financial crises," said Wendy Edelberg, director of The Hamilton Project at the Brookings Institution. In its most recent financial stability report earlier this month, the Fed listed several areas of concern, including life insurance and some types of bond and loan funds.

☆ Fed's Kashkari says a June pause on rates wouldn't indicate an end to hiking cycle
▼ + stars: | 2023-05-22 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

If we did, if we were to skip in June, that does not mean we're done with our tightening cycle. Kashkari said that if inflation doesn't come down, he would be in favor of increasing rates again. I think that they believe that inflation is going to fall, and then we're going to be able to respond to that. "But nobody should be confused about our commitment to getting inflation back down to 2%." It may be that we have to go north of 6%" on the fed funds rate, he said.

☆ 'Close call' on US June rate hike or pause, says Fed's Kashkari-CNBC
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

May 22 (Reuters) - Minneapolis Federal Reserve President Neel Kashkari said on Monday it was a "close call" on whether he would vote to raise interest rates at the central bank's meeting next month or take a pause and leave rates where they are. Speaking on CNBC, Kashkari also said services inflation remains "pretty darn entrenched" and that "it may be that we have to go north of 6%" to get it back to the Fed's 2% target. The Fed raised interest rates for a 10th straight meeting earlier this month, lifting its benchmark overnight rate to a range of 5% to 5.25%. If SVB and the other banks that recently collapsed had "had significantly more equity capital, their depositors would have been reassured because the banks could have absorbed their market-to-market losses," Kashkari wrote. Reporting By Dan Burns; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's Kashkari open to holding rates steady in June, WSJ reports
▼ + stars: | 2023-05-21 | by ( ) www.reuters.com time to read: +1 min

"I'm open to the idea that we can move a little bit more slowly from here," the newspaper quoted Kashkari as saying in a Friday interview that was published on Sunday. However Kashkari, a member of the central bank's rate-setting monetary policy committee, cautioned that his mind was not yet made up: "I would object to any kind of declaration that we're done." While inflation has shown signs of moderating since the summer of 2022, it remains well above the Fed's 2% target. The Fed has faced calls to refrain from further tightening to lessen the risk of driving the U.S. economy into recession. Reporting by Juby Babu in Bengaluru; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's Kashkari: Recession possible, but high inflation would be worse
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

April 11 (Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said the Fed's interest-rate hikes and a possible pullback in lending after two bank failures last month could trigger a recession, but allowing inflation to stay high would be even worse for the labor market. That might even lead to a recession," Kashkari said in a town hall at Montana State University, in answer to a student question about job prospects. Yields on long-term bonds are lower than those on shorter-term bonds, known as the "yield-curve inversion" and which is often a harbinger of a recession. Kashkari said he reads the pricing in bond markets as reflecting an expectation that inflation will fall quickly, allowing the Fed to cut rates. Most Fed policymakers see inflation falling to somewhere in the 3%-3.8% range by year-end, projections show, with the median projection at 3.3%.

☆ Fed's Kashkari says stress in banking sector brings the U.S. closer to recession
▼ + stars: | 2023-03-27 | by ( Jihye Lee | ) www.cnbc.com time to read: +3 min

"What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. And then that credit crunch, just as you said, would then slow down the economy," Minneapolis Fed President Neel Kashkari said in an interview with CBS' Face The Nation. "What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. And then that credit crunch, just as you said, would then slow down the economy," he said. "But right now, it's unclear how much of an imprint these banking stresses are going to have on the economy.

☆ Fed's Kashkari sticks to 5.4% rate hike view after 'surprising' jobs report
▼ + stars: | 2023-02-07 | by ( Lindsay Dunsmuir | ) www.reuters.com time to read: +2 min

"I think it surprised all of us," Kashkari said in an interview with broadcaster CNBC, referring to a blowout January jobs report in which more than half a million employment gains were reported by the U.S. government. Fed Chair Jerome Powell is due to speak later on Tuesday at 1240 EST (1740 GMT). Last week the U.S. central bank increased its benchmark overnight lending rate by a quarter-of-a-percentage-point to 4.5%-4.75%. Powell reiterated expectations that the Fed was eyeing a pause in the 5%-to-5.25% range as sufficiently restrictive in its fight against high inflation. January's jobs report, however, upended investor expectations after the U.S. economy added far more jobs than expected and the unemployment rate fell to 3.4%, the lowest reading since 1969.

☆ Fed's Kashkari says he's sticking to 5.4% rate hike view after 'surprising' jobs report
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

"I think it surprised all of us," Kashkari said in an interview with broadcaster CNBC, referring to a blowout January jobs report in which more than half a million employment gains were reported by the U.S. government. "Nobody should overreact to one report...but the underlying strength of the services sector of the economy is still very robust. And that's where I think a lot of us are focusing our attention... right now I'm still at around 5.4%. If I had to pick a number today, that would be where I was." Reporting by Lindsay Dunsmuir; Editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's Kashkari: Fed has more work to do
▼ + stars: | 2023-02-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed's Kashkari: Fed has more work to doMinneapolis Fed President Neel Kashkari joined Squawk Box for an exclusive conversation about the January jobs report, the Fed's inflation fight, and just how high rates will go.

U.S. inflation data for December is in, and while market reaction was perhaps a little muted relative to recent releases and the hype surrounding it, the overriding message for investors was clear: keep calm and risk on. Given that some of the biggest intraday moves in financial markets last year were on U.S. inflation days, the reaction on Thursday wasn't explosive. A stunning 30-year U.S. Treasury auction helped push bond yields down further, fueling investors' appetite to go out across the risk curve. A Reuters poll on Thursday showed that investors are already adding to their long positions in Asian currencies. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Fed's Kashkari: not stopping rate hikes until inflation peaks
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +1 min

Nov 17 (Reuters) - It's hard to know how high the U.S. central bank will need to raise interest rates, Minneapolis Federal Reserve Bank President Neel Kashkari said on Thursday, but it should not stop until it's clear that inflation has peaked. "I need to be convinced that inflation has at least stopped climbing, that we're not falling further behind the curve, before I would advocate stopping the progression of future rate hikes," he told the Minnesota Chamber of Commerce in an event webcast by the regional Fed bank. The Fed has raised rates aggressively this year, and Kashkari reminded his audience Thursday that the full effects of those rate hikes could take a year before they are felt economy-wide. "It's an open question of how far we are going to have to go with interest rates to bring that demand down in the balance," he said. Reporting by Ann Saphir; Editing by Mark Porter and Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ Stock market rally will be put to test in week ahead, after yields fall and tech surges
▼ + stars: | 2022-11-11 | by ( Patti Domm | In | ) www.cnbc.com time to read: +10 min

This week, bond yields also came off their highs and were sharply lower, paving the way for gains in tech and growth shares. They include Fed Vice Chair Lael Brainard, New York Fed President John Williams and Minneapolis Fed President Neel Kashkari to name a few. Hogan said that group includes Bullard, Brainard and San Francisco Fed President Mary Daly. Many strategists are calling the move higher a bear market rally, and some expect it will fizzle in December while others say it could continue into the new year. Friday Earnings: JD.com, Foot Locker, Buckle 8:40 a.m. Boston Fed President Susan Collins 10:00 a.m.

☆ Fed's Kashkari: talk of pivot 'premature,' on good policy path
▼ + stars: | 2022-11-10 | by ( Ann Saphir | ) www.reuters.com time to read: +2 min

The Fed last week raised its policy rate by 75 basis points to a range of 3.75%-4%, battling inflation that's higher than it has been in 40 years. Fed Chair Jerome Powell signaled that future rate hikes could come in smaller increments as central bankers take into account policy lags. But he also signaled that, ultimately, to bring down inflation the policy rate would likely need to go higher than the 4.6% that policymakers forecast just a couple months ago. The economy was a "long, long, long way" from the point where the Fed's two goals would be in conflict, forcing a pivot on policy, he said. Currently inflation is running at more that three times the Fed's inflation goal, and unemployment, at 3.7%, is below the 4% that most policymakers believe is consistent with a fully employed workforce in the long run.

☆ Fed's Kashkari says labor shortages still a big issue for business
▼ + stars: | 2022-10-19 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

“I’ve seen very little evidence in my region that the labor market is softening,” Kashkari said in a virtual appearance. On the inflation front, Kashkari said the surge in overall prices may have hit its high point but underlying pressures are a different story. Kashkari is one of the Fed's most steadfast supporters of raising short-term rates to help lower very high levels of inflation. Kashkari has said it's possible the Fed will need to raise rates above that level to bring down inflation. "I'm looking for some evidence" that the factors that drive underlying inflation "have in fact stopped climbing.

Oct 18 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeeverWhisper it, but the rebound underway on Wall Street - which is lifting markets and risk appetite everywhere - may have legs. This should put Asian markets on a positive footing on Wednesday. Register now for FREE unlimited access to Reuters.com RegisterU.S. earnings are rolling in nicely, with some notable beats like Bank of America and Goldman Sachs. The issues that crushed markets this year - rapid tightening of policy and financial conditions, growth fears, sticky inflation and messy fiscal policy - haven't gone away. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ October's wild trading could give way to a new stock rally, as earnings roll out in the week ahead
▼ + stars: | 2022-10-14 | by ( Patti Domm | In | ) www.cnbc.com time to read: +8 min

But Emanuel sees the chance for a 17% to 20% rally in the S & P 500. The S & P 500 was down about 0.9% for the week, as of Friday afternoon, and it was hovering just above 3,600. S & P 500 earnings are expected to grow by 3.6% for the third quarter, based on actual reports and estimates, according to Refinitiv. Without the boost from more than doubling profits from energy companies, S & P earnings would decline by 3.1%. Week ahead calendar Monday Earnings: Bank of America , Bank of NY Mellon, Charles Schwab 8:30 a.m.

☆ Morning Bid: What a fine mess
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +2 min

Oct 11 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeeverSometimes it's better to say nothing at all. The rupee is even deeper in the mire than the won - this week it hit a record low of 82.82 per dollar. Both the BoK and Reserve Bank of India have intervened in FX markets this year to support their exchange rates. They - and others - might have to do more, raising the risk that central banks offload more of their U.S. Treasuries. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Search resuls for: "Fed's Kashkari"

22 mentions found