DIRS.INFO The most relevant business & tech news

☆ Goldman raises forecast for 2023 Fed rate peak by 25 basis points
▼ + stars: | 2022-11-16 | by ( Reuters Staff | ) www.reuters.com time to read: 1 min

FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo(Reuters) - Goldman Sachs on Wednesday raised its forecast for the peak in the federal funds rate by 25 basis points to 5-5.25%, after adding one more quarter-point Federal Reserve hike in May 2023 to its outlook. The bank said in a research note that it now sees the Fed hiking by 50 bp in December and 25 bp in February, March and May.

☆ Fed hopes buoy shares, China COVID easing boosts oil
▼ + stars: | 2022-11-11 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Oil prices jumped after health authorities in top global crude importer China eased some of the country's heavy COVID curbs. The S&P 500 (.SPX) and Nasdaq (.IXIC) racked up their biggest daily percentage gains in over 2-1/2 years on Thursday after U.S. data showed prices rose less-than-expected in October. Market bets on the Fed raising rates by 50 basis points instead of 75 basis points increased. US inflation, Fed rates and marketsDOLLAR DIVEInvestors poured into risky assets after the U.S. data, with the dollar suffering its biggest daily drop in 13 years on Thursday. Meanwhile, oil prices rose on Friday after the U.S. inflation data but were on track for weekly declines of more than 4% due to COVID-related worries in China.

The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. Yet even as markets point to another large increase at the final policy meeting of the year in December, sentiment is building within the Fed to take a breather. Even with the existing rate outlook, it was a "closer call than normal" whether recession can be avoided. Inflation, officials acknowledge, has become broader and more persistent than anticipated, and may be slow to decline. Recent staff estimates, recounted in the minutes of the last Fed meeting, indicated the economy may be much "tighter" than anticipated as high demand strains against potential output that may be more limited than thought.

☆ Analysis: As markets fret, Fed officials reject idea of rising financial stability risks
▼ + stars: | 2022-10-13 | by ( Michael S. Derby | ) www.reuters.com time to read: +6 min

Tobias Adrian, the International Monetary Fund's monetary and capital markets director,wrote on Tuesday that financial stability risks have risen "substantially." Fed officials have lifted the federal funds rate from near-zero levels in March to the current range of between 3.00% and 3.25%. Financial markets expect the Fed to raise the rate again by three-quarters of a percentage point at its next policy meeting in November. More rate rises are very likely after that, with central bankers penciling in a 4.6% federal funds rate by some point in 2023. Making financial conditions more restrictive is key to how monetary policy operates.

The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. "There's not really a lot of difference" at this point among Fed officials' views about appropriate policy, Evans said. Evans called that "a pretty good looking soft landing." "While this does represent a noticeably softer labor market when compared with today's, these certainly are not recession-like numbers," Evans said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Howard Schneider; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ Fed to take rates higher than previously expected; more pain ahead
▼ + stars: | 2022-09-28 | by ( Indradip Ghosh | ) www.reuters.com time to read: +4 min

But that is unlikely to push the Fed to switch its policy path anytime soon as Fed Chair Jerome Powell and other policymakers have remained blunt about the “pain” to come. The survey predicted that would be followed by 50 basis points in December to end the year at 4.25%-4.50%. The real policy mistake is not bringing inflation back down to 2%,” said Michael Gapen, chief U.S. economist at BofA Securities. All but two of 51 economists who replied to an additional question said the risks were skewed towards a higher terminal rate than they currently expected. “The only way the Fed can do that is to hike rates and keep policy restrictive until that is achieved.”(For other stories from the Reuters global economic poll:)

☆ Fed to take rates higher than previously expected; more pain ahead - Reuters poll
▼ + stars: | 2022-09-28 | by ( Indradip Ghosh | ) www.reuters.com time to read: +4 min

The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. Asked at a Washington Post event whether he felt U.S. investors had taken an overly optimistic view of Fed policy until a recent sharp sell-off begin, Atlanta Fed president Raphael Bostic said that was beside the point. "Until that happens we're going to see I think a lot of volatility in the marketplace in all directions." "At the moment, inflation remains too high," Collins said in her first policy remarks since becoming head of the bank. The Fed maintains a 2% inflation target, as measured by the personal consumptions expenditures price index.

☆ U.S. leading indicator falls for sixth consecutive month in August
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Sarah SilbigerWASHINGTON, Sept 22 (Reuters) - A gauge of future U.S. economic activity declined for a sixth straight month in August, potentially signaling a recession amid large interest rate increases from the Federal Reserve. The Conference Board said on Thursday its Leading Economic Index fell 0.3% last month after decreasing 0.5% in July. "Economic activity will continue slowing more broadly throughout the U.S. economy and is likely to contract," said Ataman Ozyildirim, senior economics director at the Conference Board in Washington. The Conference Board projects a recession in the coming quarters." It signaled more large increases to come this year.

☆ Central banks raise rates again as Fed drives global inflation fight
▼ + stars: | 2022-09-22 | by ( Francesco Canepa | ) www.reuters.com time to read: +4 min

"We have got to get inflation behind us," Federal Reserve Chair Jerome Powell told reporters after Fed policymakers unanimously agreed to raise the central bank's benchmark overnight interest rate to a range of 3.00%-3.25%. Market participants have also pushed up their rate expectations for the European Central Bank, which is all but certain to hike again on Oct. 23. It is now seen taking its own interest rate to almost 3% next year from 0.75% now. We won't be raising interest rates for some time," Bank of Japan Governor Haruhiko Kuroda said after the policy decision. Meanwhile, Turkey's central bank continued with its unorthodox policy on Thursday by delivering another surprise interest rate cut despite inflation running at more than 80%, sending the lira to an all-time low against the dollar.

The rate hikes are the sharpest since the last time the Fed, under Paul Volcker's leadership, battled super-high inflation in the 1980s. But the projections do show Americans are in for some pain ahead as the Fed works to end inflation and prevent what Powell says would otherwise be even worse outcomes. By the end of 2024 policymakers see inflation at 2.3%, and easing to its 2% target by the end of 2025. Historically once the unemployment rate rises by half a percentage point, it continues to rise another point or two, if not more. Wednesday's projections show Fed policymakers have also become more pessimistic about the outlook for economic growth.

☆ Here's everything the Federal Reserve is expected to do today
▼ + stars: | 2022-09-21 | by ( Jeff Cox | ) www.cnbc.com time to read: +6 min

Construction workers outside the Marriner S. Eccles Federal Reserve Building, photographed on Wednesday, July 27, 2022 in Washington, DC. Kent Nishimura | Los Angeles Times | Getty ImagesThere's not a lot of mystery surrounding Wednesday's Federal Reserve meeting, with markets widely expecting the central bank to approve its third consecutive three-quarter point interest rate hike. That's the highest the fed funds rate has been since early 2008. Economic outlook: Part of this week's meeting will see Fed officials issue a quarterly update of their interest rate and economic outlook. Powell presser: Fed Chairman Jerome Powell will hold his usual news conference following the conclusion of the two-day meeting.

Fed policymakers expect it to rise to 4.4% by the end of next year, projections released Wednesday show. The availability of nearly two job openings for every job seeker reflects that, and Fed policymakers hope businesses will respond to interest rate hikes mostly by trimming hiring rather than with outright layoffs. Fed policymakers see inflation, now at 6.3% by their preferred measure, falling to 2.8% by the end of next year, projections released on Wednesday show. But in general, banks are slow to pass on the Fed's rate increases to savers and do so at levels typically far below the central bank's policy rate and, currently, inflation. With the rise in rates, monthly mortgage payments on a median-priced existing home have jumped nearly 60% to $1,940 this year.

☆ Here comes the main course
▼ + stars: | 2022-09-20 | by ( ) www.reuters.com time to read: +2 min

The lead-up to the U.S. central bank event has been bumpy and could spell more volatility for Asian markets in the hours before the Fed's statement. Ahead of the rate decision, rates continued their ascent. The 2-year Treasury yield , which tracks Fed rates closely, approached 4%, the highest since 2007. Reuters GraphicsOn Tuesday, Sweden provided the appetizer for the feast of central bank action to follow the rest of the week. The country's central bank caught markets off-guard in hiking interest rates by a larger-than-expected full percentage point.

☆ What Cramer is looking at Tuesday — Fed rate watch, 2-year Treasury yield surge, Ford warning
▼ + stars: | 2022-09-20 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

What I am looking at Tuesday, Sept. 20, 2022 U.S. stock futures were up Tuesday until the 2-year Treasury yield kept up its relentless run to 4%. BofA takes timber company Weyerhaeuser (WY) to neutral (hold) from buy. Etsy (ETSY) started with a neutral (hold) at BofA. Truist takes Norwegian Cruise Line (NCLH) to buy from hold; cuts Carnival (CCL) price-target to $10 per share from $8. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Search resuls for: "Eccles Federal"

15 mentions found