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☆ Everything you wanted to know about the market meltdown but were too afraid to ask
▼ + stars: | 2024-08-06 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +9 min

In today's big story, we're giving a full breakdown of what has been a wild few days for the market . Tech: Big Tech is going through a bit of a mid-life crisis . Big Tech is going through a bit of a . There are a few factors at play here:Big Tech, the backbone of the market, had weaker-than-expected earnings last week. The decision could seriously hurt Google's revenue and may signal more antitrust enforcement to come for other Big Tech companies .

Persons: —, Airbnb, Rebecca Zisser, We're, what's, Warren Buffett's, Berkshire Hathaway, I'm, Claudia Sahm, M, Getty, Jenny Chang, Rodriguez, Jensen Huang, Citadel's Ken Griffin, Griffin, it's, Natalie Ammari, That's, Elon, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Annie Smith, Amanda Yen Organizations: Service, Business, Tech, Big Tech, Nasdaq, Federal Reserve, Apple, Oracle, Fed, Nvidia, Bank of America, Google Locations: Japan, Berkshire, Omaha, Asia, bitcoin, Florida, New York, London

☆ These income plays could do better than money market funds when the Fed cuts rates
▼ + stars: | 2024-07-31 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +5 min

Cash has poured into money market funds since the Federal Reserve began its rate hiking cycle. Short-term debt has been a popular investment over the past few years, and money market funds are a top example. For perspective, there was roughly $4 trillion in total money market funds as of the fourth quarter of 2019, according to the St. Louis Fed . Money market funds hold very short-term debt, and many currently offer a yield above 5%. "Historically, you don't tend to see money market inflows stop or convert to outflows until you get below say 3% on those rates.

Persons: Cash, Louis Fed, Sam Huszczo, Huszczo, Todd Sohn, Ken Brodkowitz, weren't, Brodkowitz, Strategas, Sohn, " Sohn, Callie Cox, Cox Organizations: Federal Reserve, Investment Company Institute, SGH Wealth Management, Federal, Bond, SEC, Gries Financial Partners, Fidelity, Income, Morningstar, US Treasury, Ritholtz Wealth Management, Ritholtz Locations: Detroit , Michigan, BlackRock

☆ The Fed is getting closer to ending the second part of its policy tightening
▼ + stars: | 2024-02-22 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

While most of the market's attention has been on interest rates, the Federal Reserve is quietly getting ready to loosen policy in another respect as it prepares to slow down the shedding of assets on its balance sheet. Tapering down the roll-off could see the Fed reducing the caps in half, according to a projection from BNP Paribas. The QT program has resulted in a nearly $1.3 trillion reduction in total holdings, with the total balance sheet now standing at about $7.7 trillion. With confidence growing that inflation is easing, policymakers are looking to loosen up policy, albeit at a measured pace. So at this meeting, we did have some discussion of the balance sheet, and we're planning to begin in-depth discussions of balance sheet issues at our next meeting in March," Chair Jerome Powell said in his January post-meeting news conference .

Persons: Krishna Guha, Goldman Sachs, We're, Jerome Powell, we're Organizations: Federal Reserve, Evercore ISI, Fed, MBS, New York Fed, BNP Paribas, BNP

After getting battered for most of 2023, emerging market (EM) currencies have made modest gains against the dollar after the Federal Reserve held interest rates steady last week and data suggested the U.S. economy might finally be slowing. That dollar weakening trend was likely to hold in the near-term as a majority of analysts in the Nov. 3-7 Reuters poll expected the dollar to trade lower by year-end. "So it's difficult to see the EM currencies recoup some of the sharp losses that we've seen in the last few months. Although EM currencies gained at the beginning of 2023 and investors brimmed with positivity after China's post-COVID reopening, economic performance in the world's second largest economy has been mostly underwhelming. "Easier Fed monetary policy should also take some pressure off select emerging market currencies in the second half of next year," noted Nick Bennenbroek, international economist at Wells Fargo.

Persons: We've, Mitul Kotecha, we've, it's, Nick Bennenbroek, Devayani Sathyan, Anant Chandak, Hari Kishan, Ross Finley, Mark Potter Organizations: Federal Reserve, Reuters, FX, Asia, Barclays, South Korean, Thomson Locations: BENGALURU, JOHANNESBURG, U.S, Brazilian, Wells Fargo

☆ Improving your credit score by 100 points could save you hundreds of dollars
▼ + stars: | 2023-10-29 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

While there's not much you can do about the Fed raising interest rates, you do have some control over improving your credit score. With rising interest rates, having a good credit score is crucial to keeping costs down since it can save you hundreds of dollars in monthly debt expenses. To improve your credit score, make sure you make debt payments on time and have a wide variety of credit, while using the credit you have only sparingly. Depending on your outstanding debt, improving your credit score by 100 points can save you hundreds of dollars. Monthly interest for a credit cardFor credit cards, having a credit score of 630 could qualify you for an APR around 24%, according to Investopedia data.

Persons: there's, you'd, Warren Buffett Organizations: Federal Reserve, New York Fed

People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. Horizon's shares rose 5.5%. Advancing issues outnumbered decliners for a 3.82-to-1 ratio on the NYSE and a 1.78-to-1 ratio on the Nasdaq. The S&P index recorded seven new 52-week highs and no new low, while the Nasdaq recorded 43 new highs and 101 new lows. Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Stocks, Jerome Powell, Roosevelt Bowman, Gina Raimondo, Wang Wentao, Goldman Sachs, decliners, Shristi Achar, Shounak Dasgupta Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Bernstein Private Wealth Management, Traders, Fed, Nvidia, U.S, Baidu, U.S . Commerce, Intel, Micron, Chinese Commerce, Intel's, Dow Jones, U.S . Federal Trade Commission, Horizon Therapeutics, Creative Planning, NYSE, Thomson Locations: New York City, U.S, China, Bengaluru

If housing cost pressures start to ease more in the coming months, as many economists expect, then the Federal Reserve is almost certainly done. Headline annual consumer price inflation rose a little less than expected last month to 3.2%, and annual core inflation cooled slightly to 4.7%, as forecast. Reuters ImageReuters ImageShelter inflation is running at a 7.7% annual rate and has been far stickier than policymakers would have liked. But Parsons reckons lag effects will soon be bringing shelter inflation down more quickly. Reuters ImageReuters ImageReuters Image(The opinions expressed here are those of the author, a columnist for Reuters)Reporting by Jamie McGeever; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Jerome Powell, Brendan McDermid, Jay Parsons, Parsons, Jerome Powell's, Phil Suttle, Julia Coronado, Andreas Steno Larsen, Powell, Jamie McGeever, Jonathan Oatis Organizations: Federal Reserve, New York Stock Exchange, REUTERS, Federal, Fed, Traders, Reuters, CPI, Suttle, Steno Research, Thomson Locations: New York City, U.S, ORLANDO, Florida, materializing

"Financial markets have consistently front-run the Fed ... That has already eased credit conditions and could stoke an acceleration in growth." Reuters GraphicsBALANCING RISKSIn the six weeks since their June 13-14 meeting, Fed policymakers have digested data offering a mirror image of what they faced a year ago. Signs of a slowdown are there, to be sure, and some policymakers expect more weakness is coming - an argument for caution in considering further rate increases. Still, unless there's a sharp drop in activity soon, it could mean Fed officials have underestimated the economy's strength and may become doubtful about the prospect of a continued decline in inflation. That will likely keep the door open to more rate increases - for now.

Persons: Diane Swonk, Jerome Powell, That's, Tim Duy, Duy, Powell, Howard Schneider, Dan Burns, Paul Simao Organizations: Federal, KPMG, stoke, Reuters, Fed, Atlanta Fed, SGH Macro, Thomson Locations: U.S

☆ The Fed has rolled out a new index for gauging the economy that could have big implications
▼ + stars: | 2023-07-08 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

The Federal Reserve is changing the way it looks at "financial conditions," a move that could have important ramifications for policy ahead. The Fed has been using a series of interest rate increases to tighten financial conditions and, ultimately, to bring down inflation. Essentially, the move allows the Fed to distance itself from other financial conditions models, such as those formulated by Goldman Sachs and the Chicago Fed . By contrast, the Chicago Fed index's current reading is -0.28, implying relatively loose conditions. Capital Economics noted that the FCI-G "does a better job of illustrating the tightness of US financial conditions than various other measures."

Persons: they've, Krishna Guha, Jerome, Powell, Guha, Goldman Sachs Organizations: Federal, Evercore ISI, Fed, Chicago Fed, Treasury, Dow Jones, U.S, FCI

BENGALURU, July 6 (Reuters) - The U.S. dollar will hold its ground against most major currencies for the rest of the year despite expectations of narrowing interest rate differentials as the U.S. economy stays resilient, according to FX strategists polled by Reuters. "The tightness of the U.S. labour market may help the economy and the dollar in the very short term," said Kit Juckes, chief FX strategist at Societe Generale. "Even if we see (interest) rate convergence, it seems unlikely a new major euro uptrend will start without stronger growth." Indeed, a majority of common contributors showed the dollar view against most major currencies for the coming six months has been either upgraded or kept unchanged from a month ago. "The dollar is getting a tailwind from the Fed ... the current strength is on a repricing of the Fed (rate) higher," said John Hardy, head of FX strategy at Saxo Bank.

Persons: Jerome Powell, Kit Juckes, Jonas Goltermann, Sterling, John Hardy, Indradip Ghosh, Shaloo Srivastava, Sarupya Ganguly, Anitta Sunil, Veronica Khongwir, Hari Kishan, Ross Finley, Matthew Lewis Organizations: U.S, Reuters, Federal Reserve, European Central Bank and Bank of England, Societe Generale, Futures Trading Commission, Capital Economics, Saxo Bank, Thomson Locations: BENGALURU, U.S, Europe, Asia, Britain, Bengaluru

☆ Dollar gains as debt deal hopes rekindle hawkish Fed bets
▼ + stars: | 2023-05-19 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

That eased fears of an unprecedented and economically catastrophic default, leading markets to revise their expectations of where U.S. interest rates could go. The euro fell to a more than seven-week low of $1.0760, while the U.S. dollar index rose 0.07% to 103.57, flirting with Thursday's two-month high of 103.63. "It does remove one obstacle to the Fed continuing to raise rates." U.S. Treasury yields have climbed on the back of the hawkish Fed repricing and amid a pick up in risk sentiment. The two-year Treasury yield , which typically moves in step with interest rate expectations, last stood at 4.2510%, while the benchmark 10-year yield was last at 3.6402%.

☆ Dollar buoyed by hawkish Fed expectations as debt deal eyed
▼ + stars: | 2023-05-19 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

SINGAPORE, May 19 (Reuters) - The dollar firmed near a six-month peak against the yen on Friday on the back of rising U.S. Treasury yields, as optimism over debt ceiling talks in Washington raised expectations of higher-for-longer interest rates. The news helped calm fears of an unprecedented and economically catastrophic American debt default, leading markets to revise their expectations of where U.S. interest rates could go. The dollar stayed elevated in early Asia trade on Friday and last bought 138.40 yen , having risen to a near six-month high of 138.75 yen in the previous session. U.S. Treasury yields have climbed on the back of the hawkish Fed repricing and amid a pick up in risk sentiment. The two-year Treasury yield , which typically moves in step with interest rate expectations, last stood at 4.2581%, edging away from a low of 3.964% at the start of the week.

☆ Cantor's Howard Lutnick says the banking crisis isn't over and the Fed is done hiking rates
▼ + stars: | 2023-05-04 | by ( Alex Harring | ) www.cnbc.com time to read: +1 min

The Federal Reserve should be done hiking interest rates after considering the impacts of the bank crisis, said Howard Lutnick, chairman and CEO of Cantor Fitzgerald and BGC Partners. Lutnick said on CNBC's "Squawk Box" that the exodus of deposits from regional banks is the equivalent to a full percentage point in interest rate hikes from the Federal Reserve. "Of course they're done," Lutnick said of the central bank's rate hike campaign. Lutnick said the banking crisis is still a problem, even as regulators have worked to calm customers, and indirectly investors, in recent weeks. Commercial bank deposits have fallen about $894 billion since March 2022, according to seasonally adjusted data from Fed .

☆ A crypto crash for big stablecoins is likely to send shudders through other financial markets too, a Cornell professor warns
▼ + stars: | 2023-01-12 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

A crashed stablecoin could pose a threat to the wider financial system, a Cornell professor warned. The companies that issue stablecoins would have to redeem their government bond holdings if the digital tokens fail, Eswar Prasad said Thursday. "A large volume of redemptions, even in a fairly liquid market, can create turmoil in the underlying securities market," Prasad said. The turmoil hasn't yet spilt over into traditional financial markets, but financial watchdogs are worried that stablecoin issuers' government bond holdings pose that risk, according to Prasad. "The fact that we haven't had spillovers from this part of the financial ecosystem into traditional financial markets or into the real economy certainly seems to be suggestive of the fact that there is a firewall," he added.

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