DIRS.INFO The most relevant business & tech news

A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. Other big technology and growth stocks also rose, with Tesla (TSLA.O) advancing 3.4% after logging its biggest one-day percentage gain since March on Monday. Macy's (M.N) jumped 4% after the department store chain beat second-quarter sales estimates, while Coty (COTY.N) slipped 2.0% after the perfume and cosmetics maker forecast annual profit below Wall Street expectations. ET, Dow e-minis were up 66 points, or 0.19%, S&P 500 e-minis were up 17.25 points, or 0.39%, and Nasdaq 100 e-minis were up 79 points, or 0.53%. Among other stocks, shares of Zoom Video Communications (ZM.O) rose 2.8% in premarket trading after the video-conferencing platform forecast third-quarter profit above Wall Street estimates.

Persons: Carlo Allegri, Nvidia's, Russ Mould, Jerome Powell's, Lowe's Cos, Amruta Khandekar, Shinjini Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Nvidia, Monday, Bell, Federal, Traders, Coty, Dow e, Zoom Video Communications, Wall, Activision, Microsoft, Ubisoft Entertainment, Thomson Locations: New York, U.S, Jackson

Strong economic growth has spurred expectations that the Federal Reserve will leave rates higher for longer, pushing Treasury yields this month to their highest levels since 2007. The S&P 500 has lost 4% this month as the U.S. benchmark 10-year Treasury yield climbed to a more than 15-year high of 4.366% on Tuesday. Meanwhile, the S&P 500 technology sector (.SPLRCT) has dropped 5.7%, bitcoin has fallen over 10% and the ARK Innovation ETF (ARKK.P) - a bastion of many high-growth names - has dropped 18.5%. Stocks rose on Monday, with the S&P 500 closing up 0.7% and futures pointed to a further rise on Tuesday. The S&P 500 is over 8% below its January 2022 closing high.

Persons: Andrew Kelly, bitcoin, Sameer Samana, ”, Jerome Powell, Matt Maley, Miller, Goldman Sachs, Randy Frederick, Frederick, David Randall, Lewis Krauskopf, Ira Iosebashvili, Bill Berkrot Organizations: New York Stock Exchange, REUTERS, Treasury, Federal Reserve, Innovation, U.S ., Wells, Wells Fargo Investment Institute, Lipper, Investor, Deutsche Bank, Schwab Center, Financial Research, Thomson Locations: New York City, U.S, Wells Fargo, Samana, Jackson Hole , Wyoming

☆ Gold struggles for direction ahead of Fed's Jackson Hole meet
▼ + stars: | 2023-08-22 | by ( ) www.cnbc.com time to read: +2 min

Bars of gold are seen at the Krastsvetmet company, one of the world's largest producers of precious metals in Moscow, Russia on January 31, 2023. Spot gold held its ground at $1,895.70 per ounce by 0520 GMT, hovering above a five-month low of $1,883.70 hit last week. Following a week of back-to-back losses, gold on Monday settled 0.3% higher to post its best day in more than two weeks. Any correction in the U.S. dollar from recent highs could immediately ignite a strong gold market rally, he said. For an outlook on interest rates, comments from Fed Chair Jerome Powell on Friday will be monitored at a meeting of central bankers at Jackson Hole, Wyoming.

Persons: Clifford Bennett, Jerome Powell, Bennett Organizations: U.S, Treasury, ACY Securities, Federal Reserve, Trust Locations: Moscow, Russia, Jackson, , Wyoming, U.S

☆ Nasdaq rallies with Nvidia, tech shares; investors look toward Jackson Hole
▼ + stars: | 2023-08-21 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

The technology sector (.SPLRCT) gave the biggest boost to the S&P 500 and Nasdaq, while an index of semiconductors (.SOX) advanced 2.8%. At the same time, she said, investors are anxious to hear Powell's comments at Jackson Hole. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. Declining issues outnumbered advancing ones on the NYSE by a 1.44-to-1 ratio; on Nasdaq, a 1.08-to-1 ratio favored decliners. The S&P 500 posted 3 new 52-week highs and 18 new lows; the Nasdaq Composite recorded 36 new highs and 214 new lows.

Persons: Jerome Powell, Quincy Krosby, Jackson, Brendan McDermid, Johnson, Goldman Sachs, Caroline Valetkevitch, Amruta Khandekar, Arun Koyyur, Vinay Dwivedi, David Gregorio Our Organizations: Palo Alto Networks, Dow, Nasdaq, Nvidia, Federal, HSBC, Financial, Treasury, Traders, New York Stock Exchange, REUTERS, Dow Jones, Johnson, VMware, NYSE, Thomson Locations: Wyoming, Charlotte , North Carolina, New York City, U.S, Palo, billings

☆ Nasdaq rallies as Nvidia, tech jump; investors look toward Jackson Hole
▼ + stars: | 2023-08-21 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. The technology sector (.SPLRCT) gave the biggest boost to the S&P 500 and Nasdaq, while an index of semiconductors (.SOX) was also up sharply. Nvidia's stock is up more than 200% for the year so far, while the Nasdaq is up nearly 30%. At the same time, she said, investors are anxious to hear Powell's comments at Jackson Hole. According to preliminary data, the S&P 500 (.SPX) gained 30.42 points, or 0.70%, to end at 4,400.13 points, while the Nasdaq Composite (.IXIC) gained 206.65 points, or 1.55%, to 13,497.42.

Persons: Brendan McDermid, Jerome Powell, Quincy Krosby, Jackson, Johnson, Goldman Sachs, Caroline Valetkevitch, Amruta Khandekar, Arun Koyyur, Vinay Dwivedi, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Palo Alto Networks, Nasdaq, Nvidia, Dow, Federal, HSBC, Financial, Treasury, Dow Jones, Johnson, VMware, Thomson Locations: New York City, U.S, Wyoming, Charlotte , North Carolina, Palo, billings

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. The S&P 500 information technology sector (.SPLRCT), which houses Nvidia, rose 0.7% while real estate (.SPLRCR) and utilities (.SPLRCU) were a drag, down more than 1% each. Declining issues outnumbered advancers by a 2.38-to-1 ratio on the NYSE and a 1.46-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and 18 new lows, while the Nasdaq recorded 27 new highs and 141 new lows. Reporting by Amruta Khandekar and Shristi Achar; Editing by Arun Koyyur and Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Thomas Hayes, Jerome Powell, stokes, Dow, Johnson, Goldman Sachs, Amruta Khandekar, Arun Koyyur, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Palo Alto Networks, Broadcom Indexes, Dow, Nasdaq, Nvidia, HSBC, Fed, Great, Capital LLC, Equity Research, Dow Jones, Federal, Federal Reserve, Traders, Reuters Graphics Reuters, VMware, NYSE, Thomson Locations: New York City, U.S, Jackson, Wyoming

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. If the yield on the 10-year note, last up at 4.298%, crosses 4.338%, it would hit its highest level since 2007. Bruised growth stocks edged higher, with Tesla (TSLA.O) rising 3.1% in premarket trading on Monday to lead the advance. Nvidia earnings will be a major test for this year's stock market rally, which has been fueled by optimism around the potential for artificial intelligence. ET, Dow e-minis were up 105 points, or 0.3%, S&P 500 e-minis were up 20.5 points, or 0.47%, and Nasdaq 100 e-minis were up 103.25 points, or 0.7%.

Persons: Brendan McDermid, Jackson, Jerome Powell, Rick Meckler, Amruta Khandekar, Arun Koyyur, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Alto Networks, Broadcom Futures, Dow, Nasdaq, Nvidia, Reserve, Federal, Cherry Lane Investments, Reuters Graphics Reuters, Traders, HSBC, Dow e, Palo Alto Networks, CrowdStrike Holdings, VMware, Thomson Locations: New York City, U.S, Jackson, Wyoming

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. If the yield on the 10-year note, last at 4.296%, crosses 4.338%, it would hit its highest level since 2007. Investors are now keenly waiting for comments from Federal Reserve Chair Jerome Powell on Friday at a meeting of central bankers at Jackson Hole in Wyoming that begins on Aug. 24. "The Jackson Hole symposium will be key to assess Powell's dovishness meter. Nvidia earnings will be a major test for this year's stock market rally, which has been fueled by optimism around the potential for artificial intelligence.

Persons: Brendan McDermid, Jerome Powell, Jackson, Charu Chanana, Amruta Khandekar, Arun Koyyur, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Alto, Broadcom Futures, Dow, Nasdaq, Nvidia, Strong, Reserve, Federal, Saxo Markets, Reuters Graphics Reuters, Traders, HSBC, Dow e, Palo Alto Networks, CrowdStrike Holdings, VMware, Thomson Locations: New York City, U.S, Jackson, Wyoming

☆ Gold loiters near 5-month low as traders hunt for more Fed cues
▼ + stars: | 2023-08-21 | by ( ) www.cnbc.com time to read: +2 min

A staff member selects a gold bracelet for a customer at a gold shop in Renhuai, Southwest China's Guizhou province, May 11, 2023. Gold held around five-month lows on Monday, pressured by higher bond yields as markets geared up for the Federal Reserve's Jackson Hole symposium for clues on where interest rates might settle. Spot gold was largely flat at $1,887.70 per ounce, while U.S. gold futures added 0.1% to $1,917.70. Gold grazed its lowest since mid-March at $1,883.70 last week, as buoyant economic data raised bets for higher-for-longer U.S. interest rates, reducing demand for the non-yielding commodity. Investors now look to Fed Chair Jerome Powell's speech on Friday, as central bankers from around the world assemble in Jackson Hole for their annual conference.

Persons: Gold, Jackson, Ole Hansen, Saxo, Jerome Powell's, Kelvin Wong Organizations: Federal, Treasury, U.S . Federal Reserve, Trust Locations: Renhuai, Southwest China's Guizhou province, U.S, Jackson, Asia Pacific

☆ Stock Market News Today: Dow Slips 150 Points; Tesla and Zoom Stocks in Focus
▼ + stars: | 2023-08-21 | by ( ) www.wsj.com time to read: +2 min

Yields on longer-term U.S. Treasurys are rising again, putting renewed pressure on stocks. Stocks opened broadly higher but retraced some of those gains as yields climbed. Volatility in stocks this month has some traders turning to one-day options . The benchmark CSI 300 lost 1.4% and Hong Kong’s Hang Seng Index fell deeper into a bear market. China’s faltering economy remains in focus for investors, after key bank lending rates weren't cut as much as the market was expecting.

Persons: –, Stocks, Ben Eisen, Rachel Louise Ensign, Jerome Powell, Jackson Organizations: Nasdaq, Dow, . Tech, Nvidia, Microsoft, Treasury, CSI, Labor Locations: U.S, Europe

☆ Stock Market Today: Dow Futures Rise; Tesla Stock Gains Premarket
▼ + stars: | 2023-08-21 | by ( ) www.wsj.com time to read: +1 min

The robust U.S. economy has raised expectations of higher-for-longer borrowing costs, and Treasury yields have hit decade-plus highs in recent days. Treasury yields gained. The benchmark CSI 300 lost 1.4% and Hong Kong’s Hang Seng Index fell deeper into a bear market. European natural gas prices jumped again. Labor disputes in Australia’s energy industry have driven up gas prices in Europe more than 30% in August.

Persons: Dow industrials, Brent, Jerome Powell, Jackson Organizations: Treasury, Nasdaq, CSI, Labor Locations: Europe

☆ Jim Cramer on how to navigate the August pullback in equities markets
▼ + stars: | 2023-08-20 | by ( Jim Cramer | ) www.cnbc.com time to read: +8 min

But I don't think they are as related as most would have you believe. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

Persons: nothing's, Jerome Powell, we're, it's, Powell, Jackson, Donald Trump, Trump, Joe Biden, Walter Reuther playbook, Ronald Reagan, Xi Jinping, Herbert Hoover, –, – Trump, let's, Jim Cramer's, Jim Cramer, Jim, David Paul Morris Organizations: Apple, Nvidia, Home Depot, Walmart, Trump, Republican, United Automobile Workers, UAW, Trust Corporation, Jim Cramer's Charitable, CNBC, U.S . Federal Reserve, Federal Reserve Bank of Kansas, Bloomberg, Getty Locations: Jackson, Georgia, China, Federal Reserve Bank of Kansas City, Moran , Wyoming

☆ The $1 trillion of high yield debt that's piled up in the last 5 years is about to have a 'day of reckoning,' Bank of America says
▼ + stars: | 2023-08-18 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

There's around $1 trillion of private debt that's headed for potential trouble, Bank of America warned. Most of that debt has been created by below-investment grade companies through high yield loans or bonds. The bank estimated around $1 trillion of high yield debt has been accumulated by companies over the past five years, which has largely been created by below-investment grade corporations. Around 25% consists of below-investment grade firms issuing risky high-yield bonds, while 35% consisted of broadly syndicated loans taken out by below-investment grade companies, the bank said. The remaining 40% was classified as private debt.

Persons: Yuri Seliger Organizations: Bank of America, Service, Moody's Investors Service Locations: Wall, Silicon

☆ Gold rebounds from 5-month lows as U.S. dollar, yields retreat
▼ + stars: | 2023-08-18 | by ( ) www.cnbc.com time to read: +2 min

Gold edged up from 5-month lows on Friday as the U.S. dollar and bond yields slightly retreated from highs, but bullion was set for its fourth consecutive weekly decline on concerns the Federal Reserve would keep interest rates higher for longer. Spot gold gained 0.2% to $1,892.02 per ounce by 0358 GMT, after touching its lowest since mid-March on Thursday. "The U.S. dollar has eased from recent highs and this has allowed gold to make a modest move higher. "The dollar will need to take a bearish turn at some point for gold to rediscover its mojo. Just how long gold will spend trading at sub $1,900 levels will depend on how long the dollar remains bolstered by high bond yields," Waterer added.

Persons: Tim Waterer, Waterer, Jerome Powell Organizations: U.S ., Federal Reserve, U.S, Treasury, Investors, SPDR, Trust, Metals, ANZ Locations: Moscow, Russia, Jackson Hole , Wyoming

NEW YORK, Aug 16 (Reuters) - Deflationary pressures in China could spill over into global markets, which is potentially near-term good news for Western central banks as they seek to curb inflation, U.S. asset manager PIMCO said on Wednesday. The economic deterioration could moderate inflation in China and, increasingly, also in the markets served by Chinese goods, PIMCO Economist and Managing Director Tiffany Wilding said in a note. "Deflation, weakening trade, collapsing loan demand, and a paralysed property sector dampen our risk appetite," it said. "For China, the risk of more pronounced deflationary pressure depends crucially on the government’s policies in the coming months," said Wilding. "Adequate fiscal stimulus to boost domestic demand may reaccelerate inflation, while delayed or inadequate policy measures could lead to a downward spiral," she said.

Persons: PIMCO, Tiffany Wilding, “, spillovers, Wilding, Davide Barbuscia, Mark Potter Organizations: PIMCO, Oxford Economics, Zhongrong International Trust Co, Thomson Locations: China, Western

The markets await a new testInflation fears are like a zombie menace stalking the markets this summer. Concerns that the Fed’s battle with rising prices may not be finished have roiled stocks and bonds this month, and investors will be glued to the release of Fed meeting minutes for July at 2 p.m. Eastern on Wednesday for clues on what’s next for rates. Since the last rate-setting meeting in July, economic data has showed that inflation is cooling, but that’s hardly calmed the markets. Tuesday’s strong retail sales data, and hawkish comments from some central bankers, have put the markets on edge. He said on Tuesday that he was seeing “positive signs” that inflation was easing, but warned: “I’m not ready to say that we’re done.”

Persons: Mary Ann Bartels, DealBook, ” Neel Kashkari, “, ” Organizations: Fed, “, Federal, Minneapolis Fed

☆ US stocks fall as Fed minutes show officials think hot inflation could still require more rate hikes
▼ + stars: | 2023-08-16 | by ( Max Adams | ) www.businessinsider.com time to read: +3 min

US stocks closed lower on Wednesday after Fed minutes showed officials remain worried about inflation. Markets have been confident in their belief that the July rate hike was the last of the Fed's cycle. "The Fed wants to talk tough on inflation, but it's obvious they are done with rate hikes. "The July 26 rate hike was most likely not a one and done as the latest round of data suggests." The Fed will have another inflation report and another jobs report to sift through before it makes another policy decision.

Persons: Jamie Cox, Quincy Krosby Organizations: Service, Reserve, Harris Financial, LPL, Fed, Dow Jones, Nasdaq Locations: Wall, Silicon

☆ UK headline inflation rate drops sharply to 6.8% in July, in line with expectations
▼ + stars: | 2023-08-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

In August, the Bank of England increased interest rates for the 14th time in a row. LONDON — U.K. headline inflation cooled sharply in July to an annual 6.8%, but the core consumer price index remained unchanged, posing a potential headache for the Bank of England. Analysts noted that the participation rate broadly held steady, while the employment rate declined, signaling a weakening in labor demand. U.K. Finance Minister Jeremy Hunt said the drop in headline inflation showed the government's action to tackle inflation is "working," but "we're not at the finish line." Cost-of-living crisis 'far from over'With headline inflation falling to 6.8% and wages growing at record pace, the U.K.'s prolonged cost-of-living crisis may be showing signs of abating, said David Henry, investment manager at Quilter Cheviot.

Persons: Jeremy Hunt, Hunt, David Henry, Henry, Suren, Thiru Organizations: Bank of England, LONDON, Reuters, National Statistics, Monetary, Analysts, Office, Finance, Institute of Chartered Accountants Locations: CPIH, Cheviot, England, Wales

☆ Fact Check-WEF did not announce CBDCs must be implanted to engage in society
▼ + stars: | 2023-08-15 | by ( Reuters Fact Check | ) www.reuters.com time to read: +3 min

The World Economic Forum (WEF) did not announce that central bank digital currencies (CBDCs) must be “implanted under your skin” for an individual to participate in society, as claimed in social media posts. The claim stems from an article published on July 10 by the People’s Voice website with the headline: “WEF Says CBDCs Must Be ‘Implanted Under Your Skin’ if You Want To Participate in Society" (ghostarchive.org/archive/QjVJW). The WEF did publish a white paper in June 2023 on the implementation of CBDCs, but it contains no mention of a need for people to implant CBDCs to engage in society (here). In the video, Werner criticises the concept of CBDCs, and questions at the end of the interviews what CBDCs will look like in the future. There is no evidence that the WEF announced CBDCs must be implanted into an individual’s skin for them to participate in society and the article making that claim cites an economist who is not affiliated with WEF.

Persons: “ WEF, CBDCs, Richard Werner, professorwerner.org, Ivor Cummins, Werner, Read Organizations: Economic, People’s, YouTube, Forum, Reuters, WEF

☆ US retail spending picked up sharply in July
▼ + stars: | 2023-08-15 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

It was also the fourth straight month that retail sales increased. Retail sales, which are adjusted for seasonality but not inflation, rose 0.7% in July from the prior month, the Commerce Department reported Tuesday. Spending rose on nondurable items, such as clothing and sporting goods. Excluding spending at gasoline stations, retail sales rose 0.8% in July from the prior month. “Goods consumption is holding up even as services spending has taken up an increasing share of household’s wallets.

Persons: —, TJ Maxx, ”, Nikki Baird, Barbie, Taylor, Beyoncé, Taylor Swift, Gregory Daco, haven’t, Wells Organizations: DC CNN, Retail, Commerce Department, Commerce, Walmart, Target, Federal Reserve, Wall Street, Fed, “ Retailers Locations: Washington, EY

Analysts polled by Reuters had forecast inflation would rise to 3.0% from the 27-month low of 2.8% recorded in June. Money markets increased bets for a quarter-percentage-point rate hike in September. They saw a 35% probability immediately after the release of the inflation data, up from 22% beforehand, and then settled back to a 31% chance. Not all economists thought the stronger-than-expected price data would tip the scales toward a hike as soon as its next meeting in September. The Bank of Canada, after its last rate hike in July, said it would study data closely before moving again.

Persons: Carlos Osorio, Statscan, Derek Holt, Tiago Figueiredo, Jules Boudreau, Ismail Shakil, Steve Scherer, Dale Smith, Paul Simao, Jonathan Oatis Organizations: REUTERS, OTTAWA, Reuters, Statistics, Bank of, Scotiabank, Canadian, Bank of Canada, Desjardins Group, Mackenzie Investments, Thomson Locations: Toronto , Ontario, Canada, Statistics Canada, Mackenzie, Ottawa

☆ Fed officials are divided, but holding rates steady in September seems likely
▼ + stars: | 2023-08-13 | by ( Bryan Mena | ) edition.cnn.com time to read: +6 min

Washington, DC CNN —Federal Reserve officials meet next month to determine whether to raise interest rates for the 12th time to cool the economy or hold them steady. Some officials think the Fed has already raised its benchmark lending rate enough to curb inflation, but others think it’s too soon to tap the brakes. Philadelphia Fed President Patrick Harker echoed that sentiment in a speech last week, saying “I believe we may be at the point where we can be patient and hold rates steady.”Other Fed officials agree. “Inflation is still significantly above” the Fed’s 2% target, Fed governor Michelle Bowman said last week at an event in Atlanta. The Federal Reserve releases minutes from its July policymaking meeting as well as July figures on industrial production.

Persons: ” Rajeev Sharma, ”, Jerome Powell, Patrick Harker, “, Raphael Bostic, there’s, Michelle Bowman, ” Carol Schleif, ” Schleif, Katie Lobosco, Brinker Organizations: CNN Business, Bell, DC CNN — Federal Reserve, Key Private Bank, CNN, “, Fed, Financial, Philadelphia Fed, Atlanta Fed, BMO Family Office, Internal Revenue, Tax Administration, IRS, Kansas City Tax Processing, Fresno Tax Processing, China’s National Bureau of Statistics, Depot, US Commerce Department, Target, Federal Reserve, Walmart Locations: Washington, Jackson Hole , Wyoming, Atlanta, Kansas, Fresno

☆ Morning Bid: Soft landing fatigue
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +3 min

Positive economic data tends to move stock markets, either by fueling rallies, or prompting a temporary sell-off as traders take profits. But Wall Street stock markets ended Thursday flat. Futures point to mild declines for the S&P 500 and the Nasdaq 100 on Friday. The S&P 500 has risen 16% year-to-date. Analysts have cut their estimates for S&P 500 companies' 2023 earnings by about 15% since the end of last year, Capital Economics says.

Persons: Brendan McDermid, Naomi Rovnick, Emmanuel Cau, Cau, Ned Davis, Elaine Hardcastle Organizations: New York Stock Exchange, REUTERS, Nasdaq, Barclays, Economics, Capital Economics, Ned Davis Research, U.S Federal Reserve, Reuters Graphics Reuters, Reuters, University of Michigan, Thomson Locations: New York City, U.S, Tuscany

☆ Fed doves, Fed hawks: a look at how U.S. central bankers fly
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +2 min

The following graphic offers a stab at how officials stack up on their outlook for Fed policy and how to balance their goals of stable prices and full employment. Note: Fed policymakers have been driving up borrowing costs since March 2022 to bring down high inflation, and in July they increased the target policy rate range to 5.25%-5.5%. Longtime banker Jeff Schmid starts as Kansas City Fed president Aug. 21, and will be a voter in 2025. St. Louis Fed President James Bullard, a vocal policy hawk, left the Fed in July for a job in academia; the new chief will be a 2025 voter. Reporting Ann Saphir, Howard Schneider, Michael S. Derby and Dan Burns; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

Persons: Jeff Schmid, Louis, James Bullard, Ann Saphir, Howard Schneider, Michael S, Dan Burns, Andrea Ricci Organizations: Federal Open, New York Fed, Kansas City Fed, Louis Fed, Fed, Derby, Thomson Locations: Kansas, St

☆ Interest rates should stay around 5% for longer — even as inflation falls, top economist Jim O'Neill says
▼ + stars: | 2023-08-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Traders will be closely watching the U.S. consumer price index reading later for July on Thursday for indications on the Fed's future rate trajectory. Veteran economist Jim O'Neill says central banks will need to keep interest rates up around 5% across major economies for longer than the market expects, even as inflation subsides. Core inflation, which excludes volatile food and energy, has remained sticky and is expected to come in at 4.8% year-on-year in July. "I don't quite get this view that rates have to automatically start coming back down again in order to have a permanently more balanced world, in my view, economically. O'Neill also suggested the U.S. is "in a decent position to avoid a recession," noting that inflation expectations have remained fairly stable.

Persons: Dow, Jim O'Neill, O'Neill, CNBC's, we've Organizations: Dow Jones, Traders, U.S . Federal, Chatham House, Goldman, Asset Management Locations: U.S, Europe

Search resuls for: "Central Banker"

25 mentions found