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Firm dollar keeps peers on back foot ahead of BOE, Fed decisions
  + stars: | 2024-11-07 | by ( ) www.cnbc.com   time to read: +3 min
Trump's policies on restricting illegal immigration, enacting new tariffs, lowering taxes and deregulation may boost growth and inflation and crimp the Fed's ability to cut rates. Following the election, markets now see about a 70% chance the Fed will also cut rates next month, down from 77% on Tuesday, according to the CME Group's Fed Watch Tool. Anything less than a "dovish cut" from the Fed on Thursday could see traders trim back bets for a December cut and the dollar and yields rising higher, Simpson added. The yen was up 0.22% at 154.30 per dollar, after touching 154.7 on Wednesday, its lowest against the greenback since July 30. The Riksbank is seen easing by 50 basis points, and the Norges Bank is set to stay on hold.
Persons: Donald Trump's, Matt Simpson, Trump, Treasuries, Simpson Organizations: U.S, Federal Reserve, Trump, White, Index, Treasury, Fed, Republicans, CME, Bank of England, Norges Bank, Bitcoin Locations: U.S, Index ., cryptocurrencies
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSmialek: The Fed is thinking about how President-elect Trump's policies may impact inflationNew York Times Fed and economy reporter Jeanna Smialek discusses what to expect from Fed policy under a second Trump administration.
Persons: Jeanna Smialek, Trump Organizations: New York Times Fed
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailConcerned about longer-term willingness of investors to add to treasury debt: economist ReinhartVincent Reinhart, Dreyfus and Mellon chief economist and former Fed economist, joins 'Closing Bell Overtime' to talk the impact of the Fed's latest cut and the future of monetary policy.
Persons: Reinhart Vincent Reinhart, Dreyfus Organizations: Mellon, Fed
Upcoming Fed rate cut and holiday season may sustain market momentum, Tuchman predicts. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Markets reacted strongly to former President Donald Trump's victory over Vice President Kamala Harris in Tuesday's election. He then realized that the strong trend could be held up by more than just election results.
Persons: Tuchman, , Peter Tuchman, who's, Donald Trump's, Kamala Harris, Dow Jones, you've, Tuchman didn't, that's, there's Organizations: Dow, Service, New York Stock Exchange, Markets, AMD, Nvidia Locations: Tuesday's, Santa Claus
DoubleLine Capital CEO Jeffrey Gundlach said Thursday that interest rates could shoot higher if Republicans end up controlling the House, securing a governing trifecta that gives President-elect Donald Trump free rein to spend as he pleases. "If the House goes to Republicans, there's going to be a lot of debt, there's going to be higher interest rates at the long end, and it'll be interesting to see how the Fed reacts to that," Gundlach said on CNBC's "Closing Bell." The race to control the House is undecided as of Thursday after Republicans clinched their new Senate majority. "So it looks to me that there will be some pressure on interest rates, and particularly at the long end. Still, Gundlach, who had predicted a recession in the U.S., said the Trump presidency makes such an economic downturn less likely.
Persons: Jeffrey Gundlach, Donald Trump, there's, Gundlach, Trump Organizations: DoubleLine, Republicans, Senate, Federal, Trump Locations: U.S
A one-kilogram gold bar sits at Gold Investments Ltd. bullion dealers in this arranged photograph in London, U.K., on Wednesday, July 29, 2020. Gold prices touched a more than three-week low on Thursday, as the dollar strengthened after Donald Trump's win in the U.S. presidential election, while focus was also on the Federal Reserve's interest rate decision later in the day. Spot gold fell 0.1% to $2,656.34 per ounce, as of 0327 GMT, after hitting its lowest level since Oct. 15 earlier in the session. Bullion hit a record high of $2,790.15 last week and has lost more than $130 since then. Still expect prices to hit $3,000 next year," said Peter Fung, head of dealing at Wing Fung Precious Metals.
Persons: Donald Trump's, Bullion, Trump, Kelvin Wong, OANDA's, Peter Fung Organizations: Gold Investments, U.S, Asia Pacific, Metals Locations: London, Asia
"In a market with so few sellers and so many buyers, those buyers need to pay up if they want to get their hands on some shares," he said. "But they're willing to pay up because they're so worried that tomorrow a lot of them will have to pay even more than they did today." Wednesday's momentum largely continued during Thursday's session, as investors deemed a decisive Trump victory to broadly bode well for Wall Street and big business. Cramer used Home Depot 's stock moves to illustrate what he called "a dearth of sellers," explaining how shares were able to advance 2.85% by the close. The sellers are afraid to sell, the buyers are incredibly eager to buy," Cramer said.
Persons: CNBC's Jim Cramer, Donald Trump, bode, Cramer, that's Organizations: Trump, Wall, Nasdaq
The rate dropped by 25 basis points to a range of 4.50% to 4.75%. The Fed began cutting rates in September to help boost the economy as inflation cools and the job market softens. In a September speech, Fed Chair Jerome Powell indicated that another 25-bps cut could happen before 2025 if current economic trends hold steady. Below is a breakdown of how the recent rate cuts could impact your monthly borrowing costs. The breakdown includes today's 25-bps cut and the cumulative 75-bps reduction since the Fed began cutting rates in September, as estimated by Bankrate.
Persons: Jerome Powell Organizations: Federal Reserve, Fed, Bankrate, today's, Equity Lines
Reporters asked Fed Chair Jerome Powell whether he would resign if President-elect Trump asked him to. Powell responded with one word: "No." Trump has been critical of Powell, but the law does not permit a president to fire a Fed official without cause. AdvertisementFederal Reserve chair Jerome Powell has no plans to leave the central bank prematurely under President-elect Donald Trump. "We don't guess, we don't speculate, and we don't assume," Powell said.
Persons: Jerome Powell, Trump, Powell, , Donald Trump, Biden, Joe Biden Organizations: Service, Federal, Market, Trump, Fed, Street, Bloomberg, Federal Reserve, Congress
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailElection will not change Fed policy in the near term, Powell saysFederal Reserve Chair Jerome Powell fields questions from reporters after the Central Bank announced its second consecutive interest rate cut on Thursday.
Persons: Powell, Jerome Powell Organizations: Central Bank
Fed Chair Powell: We're aiming for inflation to be at 2%
  + stars: | 2024-11-07 | 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 Chair Powell: We're aiming for inflation to be at 2%Federal Reserve Chair Jerome Powell fields questions from reporters after the Central Bank announced its second consecutive interest rate cut on Thursday.
Persons: Powell, We're, Jerome Powell Organizations: Central Bank
Treasury yields were slightly lower on Thursday as investors reacted to Donald Trump's sweeping election victory and awaited the U.S. Federal Reserve's decision on interest rates. The 10-year Treasury yield fell more than 1 basis point to 4.409% after jumping over 14 points to hit 4.433% in the previous session, notching its highest level since July. The yield on the 2-year Treasury fell 2 basis points to 4.247%, paring some of its gains after rising about 7 points to reach 4.274% on Wednesday. Yields and prices move in opposite directions. One basis point equals 0.01%.
Persons: Donald Trump's Organizations: U.S, U.S . Federal, Treasury Locations: U.S .
European markets are heading for a mixed open as global investors digest Donald Trump's presidential election win and political upheaval in Germany. They also await monetary policy decisions from the U.S. Federal Reserve and Bank of England. Global markets continue to react to Donald Trump's decisive election win, with U.S. stocks rallying Wednesday as Wall Street rejoiced the speedy conclusion of the presidential election. Central banks will be closely watched Thursday, with the Fed and BoE both expected to announce rate cuts. Scholz announced he would bring a vote of confidence to the German parliament on Jan. 15.
Persons: Donald Trump's, Germany's DAX, BoE, Chancellor Olaf Scholz, Christian Lindner, Lindner's, Scholz Organizations: U.S . Federal Reserve, Bank of England, France's CAC, IG, Global, Fed Locations: Germany, Asia, Pacific, U.S
Market moves: The stock market tacked on some additional gains after the Federal Reserve on Thursday afternoon cut interest rates by 25 basis points. Bond yields, which move inversely to bond prices, have been on the rise since the Fed cut rates in September. Stick to discipline: The stock market especially liked the idea of a pro-business environment and de-regulation expected in the future Trump administration. It's not surprising to see Wells Fargo down 3% after the Club stock surged more than 13% on Wednesday. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
Persons: Jim Cramer, Thursday's, Jerome Powell, hasn't, Bond, Donald Trump, Trump, industrials, It's, Wells, Mogan Stanley, Morgan Stanley, Bloomin, Jim Cramer's, Jim Organizations: CNBC, Federal Reserve, Fed, Treasury, Bond, NBC News, Club, DraftKings, Arista Networks, Azon Enterprise, Trade, Baxter International, NRG Energy, Jim Cramer's Charitable Locations: Wells Fargo, Wells
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. The "Trump trade" and how the Federal Reserve could impact the trend was top of mind for investors Thursday. Also, Wedbush's Dan Ives and Alex Fishman of Empros Capital share their outlook on tech under a second Trump administration. Fishman said the Trump administration benefits all private tech company valuations, but especially the names in what he calls the "Musk-economy," including Neuralink and the xAI.
Persons: Trump, Wedbush's Dan Ives, Alex Fishman, Victoria Fernandez, Crossmark, Fernandez, financials, Anna Paglia, Paglia, Trump Dan Ives, Ives, " Fishman, Elon, Fishman, Crossmark's Fernandez Organizations: PRO, Worldwide, Federal, Empros, State Street Global Advisors, Trump Administration, P Bank ETF, Tech, Trump, Exchange, Qualcomm Locations: Wedbush, Palantir, United States
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed Chair Powell: We aim to balance a strong labor market with progress on inflationFederal Reserve Chair Jerome Powell fields questions from reporters after the Central Bank announced its second consecutive interest rate cut on Thursday.
Persons: Powell, Jerome Powell Organizations: Central Bank
Donald Trump's election victory is set to make the Federal Reserve's job more difficult. His tariff and immigration plans are expected to stoke inflation, complicating the Fed's policy decisions. Trump has also said he'd like a say in setting monetary policy, which would erode Fed independence. Donald Trump's election win brings his vision of hefty trade tariffs and a sweeping immigration crackdown closer to becoming reality. A study from the Peterson Institute of International Economics said interfering with the Fed's independence could cost the economy $300 billion and drive inflation higher.
Persons: Donald Trump's, Trump, , it's, Glen Smith, Smith, Paul Krugman, Trump's, Jerome Powell, Powell Organizations: stoke, Service, Treasury, GDS Wealth Management, Fed, Fed Trump, Peterson Institute of International Economics, Pantheon Macroeconomics, Trump Locations: China
President Donald Trump looks on as his nominee for the chairman of the Federal Reserve Jerome Powell takes to the podium during a press event in the Rose Garden at the White House, November 2, 2017 in Washington, DC. Federal Reserve Chairman Jerome Powell said Thursday that he will not step down if President-elect Donald Trump asks for his resignation. Trump appointed Powell in 2017, but repeatedly lashed out against the central bank chief during his first term as president, arguing Powell was not easing monetary policy quickly enough. Trump said in October interview that the president should be able to weigh in on interest rate decisions. As Covid-19 swept the nation in March 2020, Trump claimed the authority to remove Powell from office.
Persons: Donald Trump, Jerome Powell, Trump, Powell Organizations: Federal, White House, Bloomberg News, Chicago Economic Locations: Washington , DC
The Federal Reserve would likely respond to inflation by raising interest rates to curb demand. In an economic chain reaction, households would then pay higher interest rates on borrowing of all kinds as the Fed moves to tame that newly rekindled inflation. That led to the 30-year fixed mortgage rate rising, meaning homebuyers are on track to see higher interest rates on loans. An analysis by the nonpartisan Tax Policy Center found that Trump's policies would decrease posttax incomes by an average of $1,800 in 2025. Trump's win is also expected to influence the Federal Reserve's upcoming decisions on interest rates.
Persons: Donald Trump, , Trump, Ramping, Trump's, it's, Jerome Powell, Joseph Stiglitz Organizations: Federal, Service, Biden, US Census Bureau, Trump, Peterson, Center, American Progress, Tax Foundation, Fed Locations: China
The Federal Reserve is widely expected to trim rates by a quarter point on Thursday, taking another step toward unwinding its tight policy. The rate on a $30,000 home equity line of credit sits at 8.7% as of the week of Nov. 1, according to Bankrate. The rate on a 30-year fixed mortgage was 7.09% as of the week of Nov. 1, sharply higher than the 4.29% in March 2022. That's because mortgage rates loosely follow the 10-year Treasury yield , which has recently taken a leg higher. Indeed, the benchmark yield stood at 4.363% during the week of Nov. 1, sharply higher than the 3.649% it traded at in mid-September.
Persons: , it's, – Darla Mercado, Nick Wells Organizations: Federal Reserve, Fed, Treasury
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTrump's mass deportation proposal is a 'logistical, operational nightmare': Stifel's Brian GardnerBrian Gardner, Stifel, joins 'Fast Money' to talk what Fed policy and economy will look like under president-elect Trump.
Persons: Brian Gardner Brian Gardner, Trump
Following Donald Trump's Presidential election win, 30-year fixed mortgage rates briefly surged, settling at 6.98% as of Thursday, according to Mortgage News Daily . Recent interest rate cuts have brought relief to credit card, personal loan and auto borrowers, but homebuyers are unlikely to catch a break as mortgage rates continue to climb. While mortgage rates often move in step with the Fed's benchmark rate, they're more directly tied to 10-year Treasury bond yields. These yields tend to rise when investors expect stronger economic growth and higher inflation — even when the Federal Reserve is cutting the federal funds rate. Either way, "continued deficit spending, coupled with discussions of additional tariffs on imports, is likely to keep [mortgage] rates elevated through the remainder of 2024," says Nourmand.
Persons: Donald Trump's, Melissa Cohn, William Raveis, Harris, Michael Nourmand, Organizations: Reserve, Mortgage News, Federal Reserve, William Raveis Mortgage, Trump, Associates, CNBC Locations: New York, Los Angeles
Sarah Perl, who goes by the TikTok handle @hothighpriestess, says she has a successful career and relationship because she manifested both. Many of her recent posts focus on manifesting love, and they're particularly aimed at young women who want romantic relationships with men. She's not just saying that to the universe; she's feeding the TikTok algorithm, which likely sends her content to other young women. "I view manifesting almost like the For You page: Where you put your attention is where your life will end up going." For Gen Z, the divide between the divine and the digital can be razor thin.
Persons: Sarah Perl, She's, journaling, Ariana Grande, Gen, Zers, Z, Gen Zers, Amy Wu, Wu, they're, Sydney Stanback, Stanback, Shanna Watkins, Watkins, affirmations, ChatGPT, Emily McDonald, TikTok, isn't Organizations: Dua, Survey Center, University of Queensland Locations: Los Angeles, Dua Lipa, Dallas, Australia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email25 bps hike is 'almost a certainty' in November Fed meeting, says former Atlanta Fed presidentDennis Lockhart, former Atlanta Fed president, joins 'Money Movers' to discuss how Powell will handle questions around the incoming administration, what data could move the Fed from a 25 bps cut, and much more.
Persons: Dennis Lockhart, Powell Organizations: Fed, Atlanta Fed
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCNBC Fed Survey: 79% of respondents say the Fed should ignore fiscal uncertainty and cut ratesCNBC's Steve Liesman joins 'Squawk Box to break down the latest results from the CNBC Fed Survey.
Persons: Steve Liesman Organizations: CNBC, CNBC Fed Survey
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