Top related persons:
Top related locs:
Top related orgs:

Search resuls for: "Central Banker"


25 mentions found


Deeper Into the Numbers: Core inflation slowed faster than expected. A key gauge of domestic price pressures is core inflation, which strips out energy and food costs. Last month, the annual rate of core inflation fell to 6.2 percent, from 6.9 percent in July, a faster decline than economists predicted. Rising energy prices pushed up inflation in the United States last month and added to inflation pressures in other European countries. Wednesday’s inflation data was lower than the central bank forecast last month, a positive surprise, that is likely to increase expectations that the bank will pause this week.
Persons: Rishi Sunak, Jeremy Hunt Organizations: Government, Bank of England Locations: Britain, United States
The STOXX 600 European oil and gas index (.SXEP) is at its highest since mid-February, having gained around 13.5% in the past two months. In the same period, benchmark Brent crude has risen 18% and European natural gas prices have gained 50%. He said higher oil prices could prompt upgrades to earnings estimates, and potentially dividends too. "The whole energy sector should benefit, but the downstream sector is looking very cheap and offers a high dividend which is attractive given higher interest rates," said Cau. Bank of America strategists have an underweight rating on European energy stocks.
Persons: Heinz, Peter Bader, Brent, Mislav Matejka, Morgan Stanley, Emmanuel Cau, Andreas Bruckner, Lucy Raitano, Amanda Cooper, Miral Organizations: REUTERS, Brent, Reuters, JPMorgan, Barclays, Bank of America, Thomson Locations: Zistersdorf, Austria, Saudi Arabia, Russia, China
The Federal Reserve is widely expected to hold rates steady Wednesday, but the central bankers will give an update on their economic outlook with the summary of economic projections, which includes one key chart that traders will have an eye on. The so-called "dot plot" that charts the projected move in the Fed funds rate and the press conference of Chair Powell will give investors a clue as to what happens in the November meeting and into 2024. "I think that they will keep that bias towards higher rates in there and indicate that they are willing to raise the funds rate further if the data start to show that either inflation is not slowing as they expect it to, or if the labor market remains too tight," said Gus Faucher, chief economist at PNC Financial Services Group. Read more about the meeting here. — Jeff Cox, Jesse Pound
Persons: Powell, Gus Faucher, Read, — Jeff Cox, Jesse Pound Organizations: Federal Reserve, PNC Financial Services
Oil prices continued to push higher, with the international benchmark Brent crude price moving past $95 to its highest since November 2022. Reuters GraphicsInvestors and central bankers are contending with a sharp rise in oil prices as demand has picked up but Saudi Arabia and Russia have limited supply. Samuel Zief, head of global FX strategy at JPMorgan Private Bank, said central banks should not be overly concerned by the run-up in oil prices, which he said should fade as economies slow. "What the central banks are really, really focused on, it's not really the supply-side energy shocks anymore, it's really the sticky services part of the inflation basket," he said. "Pick whatever central bank you want, they're talking about either they're done already or they'll do one more hike and they'll go on pause."
Persons: Germany's DAX, Duncan MacInnes, Jerome Powell's, Samuel Zief, it's, Kazuo Ueda, Harry Robertson, Kevin Buckland, Lewis Jackson, Stephen Coates, Bernadette Baum, Chizu Organizations: Federal Reserve, Bank of England, Bank of Japan, Brent, FTSE, Nasdaq, Reuters Graphics Investors, . West Texas, JPMorgan Private Bank, of England, Bank of, Japan's Nikkei, Tokyo, Reuters, Thomson Locations: TOKYO, Asia, Japan, U.S, Saudi Arabia, Russia, Bank of Japan, London, Tokyo
US stocks dipped Tuesday as investors braced for the Fed's next interest rate move. Investors are pricing in a near-100% chance rates will be kept level on Wednesday. All three benchmark indexes ended the day lower, with the Dow losing over 100 points. All three benchmark indexes ended the day in the red, with the Dow losing over 100 points as central bankers deliberated over their next policy decision. Markets are pricing in a 99% chance central bankers will choose to keep interest rates level on Wednesday.
Persons: Jerome Powell, Brent Schutte Organizations: Dow, Service, Federal, Northwestern Mutual Wealth Management, Brent, West Texas Intermediate, Dow Jones Locations: Wall, Silicon, Here's
Federal Reserve officials are expected to leave interest rates unchanged at their meeting on Wednesday, buying themselves more time to assess whether borrowing costs are high enough to weigh down the economy and wrestle inflation under control. Wall Street will closely watch whether Fed policymakers still expect to make another interest rate increase before the end of the year or whether they are edging closer to the next phase in their fight against rapid inflation. Central bankers have already raised interest rates to a range of 5.25 to 5.5 percent, the highest level in 22 years. Officials predicted in their last quarterly economic forecast — released in June — that they were likely to make one more rate increase before the end of 2023. They have kept that possibility alive throughout the summer even as inflation has begun to fade meaningfully.
Organizations: Federal Locations:
There are six key economic indicators for markets to gauge the health of the US economy. The US is likely headed for a mild recession, according to one chief investment officer. Markets are currently pricing in a 99% chance the Fed will choose to keep interest rates unchanged, according to the CME FedWatch tool. Small business optimism is waningSmall business optimism slumped over the past month to 91.3, down 0.6 points from July's reading. But real wages of Americans have actually fallen 0.5% over the past month, according to the Bureau of Labor Statistics, which could spell trouble for the US consumer.
Persons: Brent Schutte, Schutte Organizations: Service, Federal Reserve, Fed, Northwestern Mutual Wealth Management, Cleveland Fed, Bureau of Labor Statistics, San Francisco Fed, University of Michigan's Locations: Wall, Silicon
Current funding for most U.S. government programs except for the military and Social Security payments expires on Sept. 30. The government would continue to make payments on Treasury bonds and other forms of debt during a shutdown. A government shutdown would prevent the collection and release of key market data including gross domestic product, unemployment figures and inflation data, clouding the ability of central bankers to gauge the strength of the economy, Cantrill said. "The Fed – who has emphasized how data-dependent it currently is – would be flying blind" into the central bank's policy meeting in November, she said. Economists at Capital Economists, meanwhile, said in a note on Monday that the risk of a shutdown is rising but said they expect a quick resolution.
Persons: Kevin Wurm, PIMCO, Libby Cantrill, Goldman Sachs, Kevin McCarthy, Cantrill, There's, David Randall, Ira Iosebashvili, Matthew Lewis Organizations: Capitol, REUTERS, Federal Reserve, Republicans, Social, Goldman, . House, Capital Economists, Thomson Locations: Washington , U.S, shutdowns, New York, London
Spencer Platt | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. They're all but certain the central bank will keep interest rates the same for now, according to the CME FedWatch Tool. It's the November meeting investors are fretting over. Hence, the Fed's dot plot, which charts where the central bankers think interest rates will be in the short- and long-term, will be closely scrutinized by investors.
Persons: Spencer Platt, Goldman Sachs, Jan Hatzius, it's, Hatzius, Ed Yardeni, they're, Yardeni Organizations: New York Stock Exchange, Getty, CNBC, Yardeni Locations: New York City, U.S
CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. They're all but certain the central bank will keep interest rates the same for now, according to the CME FedWatch Tool. It's the November meeting investors are fretting over. Hence, the Fed's dot plot, which charts where the central bankers think interest rates will be in the short- and long-term, will be closely scrutinized by investors. "And I think we may very well have immaculate disinflation, where inflation comes down without an economy-wide recession."
Persons: Goldman Sachs, Jan Hatzius, it's, Hatzius, Ed Yardeni, they're, Yardeni Organizations: New York Stock Exchange, Ormat Technologies, Inc, NYSE, CNBC, Yardeni Locations: U.S
US home sales are headed for the largest slowdown since 2011, according to Fannie Mae. That's due to headwinds like higher mortgage rates, amid a weakening US economy. That figure will only improve slightly in 2024, with total home sales expected to hit 4.9 million, Fannie Mae economists said. Optimists who say the US is on track to avoid a recession have pointed to still-robust consumer spending, but current trends look unsustainable when considering incomes, Fannie Mae said. Experts say housing affordability and sales are unlikely to improve until mortgage rates dial back more significantly, likely to around the 5% range.
Persons: Fannie Mae, That's, Freddie Mac Organizations: Service, Fed Locations: Wall, Silicon, Real
Student loan repayments restart in October after a three-year suspension during the COVID-19 pandemic. In isolation, none would likely shift policymakers' sense of the short-term risks or change their focus on quelling still-elevated inflation. By Goldman's estimate the economy would still be growing at a 1.3% annual rate at that point. But the amounts they see sliced from GDP are more than the 1% growth rate Fed officials expected the economy to muster as of June, and beyond many private forecasts as well. Some economists say the resumption of student loan repayments for tens of millions of borrowers may already be reshaping behavior.
Persons: Goldman Sachs, Vincent Reinhart, Reinhart, Michael Pearce, Ian Shepherdson, Kieran Clancy, They've, Howard Schneider, Dan Burns, Andrea Ricci Organizations: . Federal Reserve, United Auto Workers, Federal, Republicans, Reuters Graphics Reuters, Mellon, Reuters, Oxford Economics, Congressional, U.S . Department, Education, Thomson
"Interest rates are too high – people can't buy homes, they can't do anything," he said Sunday. "Right now, interest rates are too high – people can't buy homes, they can't do anything," Trump told NBC's "Meet the Press". They say Trump was right about everything." I did a lot of jawboning against him, and he ultimately lowered interest rates," Trump added. "We had lower interest rates.
Persons: Donald Trump, Trump, NBC's, Bacon, Jerome Powell, Powell, Organizations: Service, Federal Reserve, NBC, Twitter Locations: Wall, Silicon
As a result, they’re almost sure to leave their key interest rate unchanged when their meeting ends Wednesday. Claudia Sahm, a former Fed economist, said she thinks a “soft landing,” in which the Fed manages to curb inflation without causing a recession, remains possible. But she cautioned that inflation might stay higher for longer than the central bank expects. Or, she suggested, the cumulative effects of the Fed's 11 rate hikes could ultimately tip the economy into recession. “I expect we’ll need to hold rates at restrictive levels for some time,” said Susan Collins, president of the Federal Reserve Bank of Boston.
Persons: they’re, Jerome Powell, Claudia Sahm, ” Sahm, “ They’re, , Christopher Waller, Powell, , They're, Jose Torres, Susan Collins, Lorie Logan, William English Organizations: WASHINGTON, Federal, Wall Street, Fed, Fed's, Governors, CNBC, Interactive, Federal Reserve Bank of Boston, Dallas Fed, European Central Bank, Bank of England, Bank of Japan, , Yale School of Management Locations: Jackson Hole , Wyoming, Ukraine, U.S
U.S. retail sales also climbed 0.6% last month, against estimates of a 0.2% rise, while initial jobless claims for the latest week fell to 220.000. "We've been waiting to see exactly which of these inflation data trends would kind of knock the market off its axis. "It's likely that while the Federal Reserve won't love the August inflation data, it also is soft enough that they likely won't react to it either. ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH, CONNECTICUT"Most of the rise in prices is coming from energy. "I still believe we have seen the last of the rate hikes, but there is a possibility small that November still has the potential to bring another rate hike.
Persons: Robert Graham, King, King of Prussia, Mark Makela, SAMEER SAMANA, WELLS, We've, haven't, GREG BASSUK, PETER ANDERSEN, ANDERSEN, ROBERT PAVLIK, BRIAN JACOBSEN, MENOMONEE Organizations: REUTERS, Federal Reserve, Reuters, CHARLOTTE, Federal, Global Finance, Markets, Thomson Locations: Prussia, United States, King, King of Prussia , Pennsylvania, U.S, WELLS FARGO, NORTH CAROLINA, BOSTON, DAKOTA, CONNECTICUT, WISCONSIN
By the end of the year, the Fed will choose between the economy and its inflation target, Mohamed El-Erian said. The central will decide if it can tolerate inflation at 3% or higher — above its 2% target. Or the Fed will choose to "crush" the economy to reach its long-standing goal, he told CNBC. "The Fed at the end of the year is going to have a choice: You live with 3% or higher inflation, or your crush the economy," he said, adding that he hopes the Fed doesn't crush the economy. Though central bankers are officially aiming to lower inflation to a 2% long-run target, doing so could spark a severe downturn for the US economy, El-Erian has previously warned.
Persons: Mohamed El, Erian Organizations: CNBC, Service, Reserve, Allianz, New York Fed Locations: Wall, Silicon, El
The dollar index , which tracks the currency against six peers including yen, euro and sterling, held firm, though moves were subdued, up 0.13% to 104.73, as traders awaited the U.S. consumer price index (CPI) reading for August. The release comes just a week before Federal Reserve officials gather to decide on interest rate policy. The euro fell 0.2% to $1.0731 as markets raised their bets on further ECB rate hikes despite recent data showing the decline in euro zone business activity accelerated faster than initially thought last month. A source told Reuters that the ECB expects inflation in the 20-nation euro zone to remain above 3% next year, bolstering the case for a 10th consecutive interest rate increase on Thursday. YEN RETRACES GAINSThe yen fell as traders further digested comments from Japan's top central banker on a possible early exit from its negative interest rate policy.
Persons: Dado Ruvic, CME's, BoE, Stephen Gallo, Jim Reid, Deutsche Bank . Sterling, YEN RETRACES, Hiroshige Seko, Kazuo Ueda's, Ueda, Joice Alves, Brigid Riley, Alison Williams, Mark Heinrich Our Organizations: REUTERS, Sterling, European Central Bank, Federal Reserve, Federal, ECB, FX, BMO Capital Markets, U.S, CPI, Reuters, Deutsche Bank ., Bank of Japan, Fed, Thomson Locations: U.S, Japan, London, Tokyo
European stocks (.STOXX) fell as much as 0.5% in early trading, with rate-sensitive tech stocks (.SX8P) losing 0.8%. And the latest spike in oil prices to 10-month highs is unlikely to escape the Fed's attention. Fuelling worries over persistent inflation were oil prices, which firmed after hitting a 10-month peak a day earlier. ECB HIKE BETSThe euro was down 0.1% at $1.074, after nearing one-week highs on the Reuters story which was published late on Tuesday. "The leak raises the possibility of a hawkish hike which would be much more supportive for the EUR," said Steve Englander, global head of G10 FX research at Standard Chartered, referring to the Reuters report.
Persons: Androniki, Robert Alster, you'll, Steve Englander, Tom Wilson, Stella Qiu, Shri Navaratnam, Christina Fincher Organizations: Nikkei, REUTERS, Consumer, Index, Federal Reserve, Management, European Central Bank, Reuters, ECB, Nasdaq, Brent, U.S, West Texas, Markets, Standard Chartered, Thomson Locations: Tokyo, Japan, SYDNEY, Asia, Pacific, London, Sydney
The dollar index , which tracks the currency against six peers including yen, euro and sterling, held firm, though moves were subdued, up 0.1% to 104.70, as traders awaited the U.S. consumer price index (CPI) reading for August. The release comes just a week before Federal Reserve officials gather to decide on interest rate policy. Elsewhere, the euro edged 0.1% lower to $1.0742 ahead of the ECB meeting on Thursday. A source told Reuters that the ECB expects inflation in the 20-nation euro zone to remain above 3% next year, bolstering the case for a 10th consecutive interest rate increase on Thursday. YEN RETRACES GAINSThe yen fell as traders further digested comments from Japan's top central banker on a possible early exit from its negative interest rate policy.
Persons: Dado Ruvic, CME's, Jim Reid, Deutsche Bank . Sterling, YEN RETRACES, Hiroshige Seko, Kazuo Ueda's, Ueda, Joice Alves, Brigid Riley, Alison Williams Organizations: REUTERS, European Central Bank, Federal Reserve, Commerzbank, ECB, Reuters, Deutsche Bank ., Bank of Japan, Fed, Thomson Locations: Japan, London, Tokyo
Both S&P 500 futures and Nasdaq futures were mostly unchanged. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slipped 0.3% while Tokyo's Nikkei (.N225) eased 0.1%. While core CPI is seen cooling to 4.3% year-on-year in August from 4.7%, rising energy costs are forecast to keep headline inflation elevated at 3.6%. And the latest spike in oil prices to ten-month highs is unlikely to escape the Fed's attention. On Wall Street, the S&P 500 fell 0.6% overnight, the Nasdaq declined 1% while Dow Jones was mostly flat.
Persons: Androniki, Ray Attrill, Dow Jones, Steve Englander, Stella Qiu, Shri Navaratnam Organizations: Nikkei, REUTERS, Apple, Oracle, Thursday SYDNEY, European Central Bank, Reuters, ECB, Nasdaq, Tokyo's Nikkei, Consumer, Index, Federal, Fed, National Australia Bank, Brent, U.S, West Texas, Standard Chartered, Thomson Locations: Tokyo, Japan, Europe, Asia, Pacific
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat while Tokyo's Nikkei (.N225) eased 0.2%. Australia's resource-heavy shares (.AXJO) lost 0.7%, Chinese blue-chips (.CSI300) were flat but Hong Kong's Hang Seng index (.HSI) moved 0.6% higher. While core CPI is seen cooling to 4.3% year-on-year in August from 4.7%, rising energy costs are forecast to keep headline inflation hot. And the latest spike in oil prices to ten-month highs is unlikely to escape the Fed's attention. Oil prices extended gains on Wednesday.
Persons: Androniki, HSI, Ray Attrill, Dow Jones, Stella Qiu, Shri Navaratnam Organizations: Nikkei, REUTERS, Apple, Oracle, Thursday SYDNEY, Reuters, European Central Bank, Consumer, Index, Federal, Fed, National Australia Bank, Brent, . West Texas, Nasdaq, ECB, U.S, Thomson Locations: Tokyo, Japan, Asia, Pacific
Economists and investors were closely watching the report, which is the last major data release the Fed will receive before its Sept. 19-20 policy meeting. Fed officials have already raised interest rates to a range of 5.25 to 5.5 percent, up sharply from near-zero as recently as March 2022. Policymakers at the Fed want to avoid raising rates by so much that the delayed effects add up to tank economic growth. But they also want to avoid doing too little and allowing inflation to become a lasting feature of the American economy. Central bankers will release a fresh set of economic projections following their meeting next week.
Persons: they’ve, , Sarah House, “ We’re Organizations: Fed Locations: Wells Fargo, Central
Dollar steady as U.S. inflation data awaited, yen retraces gains
  + stars: | 2023-09-13 | by ( ) www.cnbc.com   time to read: +3 min
More broadly, the dollar held firm, though moves were subdued as traders awaited a closely watched U.S. inflation reading due later on Wednesday. Analysts attributed the slide to an unwinding of long dollar positions after a recent run of resilient U.S. economic data. Wednesday's U.S. consumer price index, or CPI, data for August comes just a week before Federal Reserve officials gather to decide on interest rate policy. "In recent months, European inflation, core inflation in particular, has fallen more slowly than expected. "The high inflation rate warrants another rate hike, but the economic indicators ... signal that a recession is imminent."
Persons: Kazuo Ueda, Alvin Tan, Ueda, Hiroshige Seko, Sterling, CME's, Tina Teng Organizations: Bank of Japan, Asia FX, RBC Capital Markets, Federal Reserve, U.S, Fed, CMC Markets, European Central Bank, Reuters, ECB, Rabobank Locations: U.S, Asia
In the broader currency market, the dollar stood firm, though moves were subdued as traders stayed on guard ahead of the closely-watched U.S. inflation reading out later on Wednesday. Wednesday's U.S. consumer price index (CPI) data for August comes just a week before Federal Reserve officials gather to decide on interest rate policy. While the central bank is largely expected to keep rates on hold at next week's meeting, according to CME's FedWatch Tool, the Fed's next move in November remains more uncertain. "In recent months, European inflation, core inflation in particular, has fallen more slowly than expected. "The high inflation rate warrants another rate hike, but the economic indicators ... signal that a recession is imminent."
Persons: Dado Ruvic, Kazuo Ueda, Alvin Tan, Ueda, Hiroshige Seko, Sterling, CME's, Tina Teng, Brigid Riley, Shri Navaratnam Organizations: REUTERS, Rights, Bank of Japan, Asia FX, RBC Capital Markets, Federal Reserve, U.S, Wednesday's, Fed, CMC Markets, European Central Bank, Reuters, Rabobank, Thomson Locations: U.S, Asia, Wednesday's U.S
PinnedMany economists think that a cooling job market, with slower pay gains, could pave the way for slower price increases. A recent jump in gas prices probably helped to speed up overall inflation in August, but economists expected a key underlying price measure to grow at a muted pace. Fed officials will closely parse this report, because it is the final major piece of economic data before their Sept. 19-20 monetary policy meeting. Fed officials must decide in coming months whether they need to raise rates again in 2023, and what would merit such a move. The central bank will receive one more Consumer Price Index inflation report before its November gathering, on Oct. 12.
Persons: John C, Williams, Jerome H, Powell, Mr Organizations: Federal Reserve, Federal Reserve Bank of New, Fed Locations: Federal Reserve Bank of New York
Total: 25