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But "we should 'stick to our knitting' and not wander off to pursue perceived social benefits that are not tightly linked to our statutory goals and authorities," Powell said. "Taking on new goals, however worthy, without a clear statutory mandate would undermine the case for our independence." "Decisions about policies to directly address climate change should be made by the elected branches of government and thus reflect the public's will as expressed through elections," he told the forum in Stockholm. Powell's comments, particularly about climate change, are not new. When it comes to inflation, however, Powell said it was critical the Fed retain the ability to manage as it sees fit - raising interest rates to control inflation even if that means slower growth and higher unemployment.

Wage gains are strong and consumption, the mainstay of U.S. economic growth, continues to increase even after adjusting for inflation. Many factors influence when and if the economy falls into recession; but invariably it will involve rising unemployment and falling consumption. They have telegraphed plans to keep raising interest rates for now as they try to cool the economy and keep prices in check. To date, Fed officials do not feel they have overstepped. "The greatest upside risk is also linked to monetary policy actions," if the Fed navigates the economy to its aimed-for "soft landing" that avoids recession.

The proposed principles detailed expectations for banks with more than $100 billion in assets to incorporate financial risks related to climate into their strategic planning. Those financial impacts "pose an emerging risk to the safety and soundness of financial institutions and the financial stability of the United States," the Fed said. The Fed's plan would require banks to consider climate-related financial risks in their audits and other risk management and add climate-related scenario analysis to traditional stress testing. Fed Governor Christopher Waller dissented against Friday's proposal, raising the question of whether it poses a serious risk to large banks' soundness or U.S. financial stability. "The Federal Reserve conducts regular stress tests on large banks that impose extremely severe macroeconomic shocks and they show that the banks are resilient."

☆ U.S. Fed proposes framework for how banks manage climate-related financial risk
▼ + stars: | 2022-12-02 | by ( Expert Analysis | Reuters Professional | The Subsistence Farmer S Son Pushing For A Better Shake For Smallholders At Spices Brand Mccormick | ) www.reuters.com time to read: 1 min

WASHINGTON, Dec 2 (Reuters) - The U.S. Federal Reserve on Friday proposed new guidance for how large banking institutions manage climate-related financial risks, in line with proposals from other key financial regulators. The proposed principles detailed expectations for banks with more than $100 billion in assets to incorporate financial risks related to climate into their strategic planning. Issuance of the proposal for public comment was approved in a 6-1 vote of the Fed Board of Governors, with Governor Christopher Waller dissenting. Reporting by Chris Prentice; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ Big Tech layoffs are dystopian job-market fiction
▼ + stars: | 2022-11-18 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

After years of falling U.S. unemployment, it might seem like Silicon Valley is foreshadowing the beginning of a dystopian future for workers. Yet there’s a good chance that what happens in Silicon Valley won’t spill over into the rest of the economy. Silicon Valley is ahead of the curve on firing too. That’s particularly burdensome for tech firms that rely heavily on innovation to drive growth. Job listings for restaurant workers were up 38% from the pre-crisis levels as of Nov. 10, according to Indeed.

☆ Chip stocks hammered in Asia, dollar firms on hawkish Fed
▼ + stars: | 2022-11-17 | by ( Kevin Buckland | Yousef Saba | ) www.reuters.com time to read: +4 min

TOKYO, Nov 17 (Reuters) - Chip stocks took a beating on Thursday, sending most Asian share indexes lower, after grim signals from Micron Technology overnight about excess inventories and sluggish demand. Meanwhile, the U.S. dollar rebounded after stronger-than-expected U.S. retail sales suggested the Federal Reserve was unlikely to ease up in its battle with inflation. Hong Kong's Hang Seng Index (.HSI) tumbled 2.1%, with its tech stocks (.HSTECH) slipping more than 4%. Japan's Nikkei (.N225) lost 0.3% and South Korea's Kospi (.KS11) dropped 1.1%, each led by declines in heavyweight chip players. The U.S. dollar index - which measures the currency against six major counterparts - added 0.13% to 106.41, stabilizing after a slide as low as 105.30 on Tuesday following the release of producer price inflation numbers.

Meanwhile, the U.S. dollar rebounded after stronger-than-expected U.S. retail sales suggested the Federal Reserve was unlikely to ease up in its battle with inflation. That fuelled concerns about the economic outlook, with the U.S. Treasury yield curve remaining deeply inverted in Tokyo trading and suggesting that investors are braced for recession. Hong Kong's Hang Seng Index (.HSI) tumbled 2.7%, with its tech stocks (.HSTECH) slipping more than 5%. Japan's Nikkei (.N225) lost 0.4% and South Korea's Kospi (.KS11) dropped 1.1%, each led by declines in heavyweight chip players. The U.S. dollar index - which measures the currency against six major counterparts - added 0.28% to 106.57, rebounding from a slide as low as 105.30 on Tuesday following the release of producer price inflation numbers.

Shares of Target Corp (TGT.N) tumbled 13.1% after the big-box retailer forecast a surprise drop in holiday-quarter sales. The S&P 500 consumer discretionary sector (.SPLRCD) shed 1.5%. The S&P 500 information technology sector (.SPLRCT) fell 1.4% and the Philadelphia SE Semiconductor index (.SOX) sank 4.3%. Elsewhere in retail, shares of Lowe's (LOW.N) rose 3% after the home improvement company raised its annual profit forecast. The S&P 500 posted 3 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 71 new highs and 133 new lows.

☆ Asian stocks mixed, dollar finds footing as traders assess Fed outlook
▼ + stars: | 2022-11-17 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

TOKYO, Nov 17 (Reuters) - Asian stocks were mixed on Thursday while the U.S. dollar stabilized and Treasury yields remained depressed as investors tried to assess the outlook for Federal Reserve policy following stronger-than-expected retail sales data. Renewed expectations the Fed will keep hiking rates have increased concerns about the economic outlook. The U.S. Treasury yield curve remained deeply inverted in Tokyo trading, suggesting investors are bracing for recession. U.S. e-mini stock futures , though, indicated a 0.3% rebound at the reopen following the S&P 500's (.SPX) 0.8% overnight retreat. However, traders still see the terminal rate as close to 5% by next summer from the currency policy rate of 3.75-4%.

☆ Fed's Bullard says rate hikes have had 'only limited effects' on inflation so far
▼ + stars: | 2022-11-17 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

Using standards set by Stanford economics professor John Taylor, Bullard insisted that the moves the Fed has made so far are insufficient. "Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023," he said. "To attain a sufficiently restrictive level, the policy rate will need to be increased further," he added in the presentation. The Fed has approved four consecutive 0.75 percentage point rate increases, and markets widely expect the December FOMC meeting to yield a 0.5 percentage point move. Also, San Francisco Fed President Mary Daly told CNBC on Wednesday that she expects more rate increases and that a "pause is off the table" even with a lower level of rate increases.

WASHINGTON, Nov 16 (Reuters) - U.S. Federal Reserve Governor Christopher Waller, an early and outspoken "hawk" in the central bank's efforts to confront inflation, said Wednesday he is now "more comfortable" with smaller rate increases going forward after recent data showed the pace of price increases slowing. Recent positive news on inflation has led investors to bet the Fed may not have to do as much as expected, and may only need to raise the target policy rate to around 5%. Waller said signs the economy and wage growth are slowing have added to his sense that Fed policy is beginning to do its job. But he cautioned it was too early to pin down just how high rates may need to go. "Getting inflation to fall meaningfully and persistently toward our 2% target will require increases in the federal funds rate into next year.

☆ Fed Governor Waller expects a 50 bps hike in December
▼ + stars: | 2022-11-16 | 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 Governor Waller expects a 50 bps hike in DecemberCNBC's Steve Liesman joins 'Power Lunch' to report on comments made by Federal Reserve Governor Christopher Waller about a 50 basis point hike in December, the importance of slowing growth in the fight against inflation and takeaways from the CPI report.

☆ Morning Bid: Shot across the bow
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +5 min

The euro lost 1.5 cents as the news from Poland unfolded but has regained all of that since. European bourses have been less quick to rebound and remain in the red, with aerospace and defence stock outperforming. "Tighter money has not yet constrained business activity enough to seriously dent inflation," Bostic wrote on the Atlanta Fed's website. U.S. attention will turn to retail sales on Wednesday as October data is due for release alongside industry readings. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Fed's Waller says he's open to a half-point rate hike at December meeting
▼ + stars: | 2022-11-16 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Federal Reserve Governor Christopher Waller said Wednesday he's open to reducing the level of interest rate increases soon, so long as the economic data cooperate. Market expectations are running high that policymakers will approve another rate hike, but this time opting for a 0.5 percentage point, or 50 basis point, move. "But I won't be making a judgement about that until I see more data, including the next PCE inflation report and the next jobs report." The next PCE inflation report is due out on Dec. 1. Investors have grown optimistic that a lower-than-expected increase in October's consumer price index reading is indicative that inflation is cooling.

Recent positive news on inflation has led investors to bet the Fed may not have to do as much as expected, and may only need to raise the target policy rate to around 5%. Waller said signs the economy and wage growth are slowing have added to his sense that Fed policy is beginning to do its job. But he cautioned it was too early to pin down just how high rates may need to go. "Getting inflation to fall meaningfully and persistently toward our 2% target will require increases in the federal funds rate into next year. Reporting by Howard Schneider and Ann Saphir; Editing by Andrea Ricci and Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.

The surge in stocks and bonds, and steep dollar slide last week sparked one of the biggest loosening of financial conditions in decades. "We see this as another example of the inherent challenges that come from trying to slow the pace of hikes without easing financial conditions." chartchartEvery time investors and traders begin to price a Fed 'pivot', market conditions loosen, and inflationary pressures rise. Policy decisions affect financial conditions immediately, but the full effects of changing financial conditions on inflation are felt much later, Powell told reporters. Related columns:- Fed 'pivot' draws closer, but the word has had its day (Nov. 11)- China reopening may add inflation headache (Nov. 9)- Hedge funds capitulate on Fed pivot (Nov. 6)By Jamie McGeever; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ How the crypto fallout could affect you
▼ + stars: | 2022-11-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

New York CNN Business —The crypto industry is still reeling from last week’s shocking death spiral of digital currency exchange FTX. While these funds say they had limited exposure to FTX, their inclusion points to a growing but alarming trend that could affect you even if you’re not a buyer of crypto yourself. What’s happening: Pension funds are increasingly investing in alternative assets in search of bigger returns. In the United States, public pension funds are facing serious challenges that threaten the retirement plans of millions of state and local government employees. It’s not just a trend that’s happening in the United States.

☆ FTX's collapse shows the Fed's tightening is crushing speculative assets like crypto – and don't expect a pivot anytime soon, UBS says
▼ + stars: | 2022-11-15 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

FTX's collapse shows Federal Reserve tightening is crushing speculative assets, UBS said Tuesday. Its aggressive interest rate hikes have injected "vulnerability" into crypto, the bank CIO said. Investors should treat the unregulated crypto space with extreme caution, because jumbo Fed rate hikes could expose further issues in the sector, Haefele said. "The reduction in central bank liquidity has added to the vulnerability of this market." Christopher Waller, Fed governor and voting member, said Sunday the central bank still had "a ways to go" before it'd consider ending its rate hikes.

☆ Dollar rebounds as Fed officials say hikes to continue; yen slumps
▼ + stars: | 2022-11-15 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

The dollar index , which measures the currency against six counterparts including the yen, euro and sterling, edged 0.03% higher to 107.00 early in the Asian day. The index held onto gains made on Monday when it rebounded from a three-month low of 106.27 hit on Friday. The dollar gained 0.34% to 140.40 yen , adding to its 0.84% overnight rebound from a 2 1/2-month low of 138.46. The euro was little changed at $1.03215 following its retreat from a three-month high of $1.0364. The offshore Chinese yuan was little changed at 7.0461 per dollar, after hitting a more than five-week high of 7.0200 in the previous session.

☆ Treasury yields dip as traders await key inflation data
▼ + stars: | 2022-11-15 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +1 min

The 2-year Treasury yield was last at 4.3677% after declining by four basis points. Treasury yields fell on Tuesday as markets awaited the release of October's producer price index figures and digested U.S. Federal Reserve speaker commentary. Markets are hoping that the data will provide more clarity on whether overall inflation is cooling, after consumer inflation figures released on Thursday hinted at this. He also indicated that the Fed would consider slowing rate hikes, but a pause to them is not imminent. Federal Reserve Vice Chair Lael Brainard also hinted at a potential slowdown of rate hikes in remarks made on Monday.

☆ Inflation is cooling, and Wall Street loves it
▼ + stars: | 2022-11-15 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +4 min

Investors are hoping that the cooling inflation pressures will lead the Federal Reserve to raise interest rates by smaller amounts in the next few months, following four consecutive historically large hikes. But it’s the good news on the inflation front that is giving investors the biggest cause for jubilation. Those comments soothed investors, who were spooked by remarks from another Fed official about inflation and interest rates. The Fed is clearly still more concerned about inflation than it is the possibility its aggressive rate hikes will slow the economy. That means the market should get used to the notion that interest rates are going to keep climbing and may stay elevated for some time.

☆ NY Fed: Inflation expectations jump in October on gasoline cost fears
▼ + stars: | 2022-11-14 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

Central bank officials contend that where the public sees inflation in the future has a strong influence on current inflation readings. Speaking on Nov. 9, New York Fed leader John Williams said “the importance of maintaining well-anchored inflation expectations is a bedrock principle of modern central banking.” He added, “the news is mostly good — longer-run inflation expectations in the United States have remained remarkably stable at levels broadly consistent” with what the Fed wants to see on inflation over the longer run. “so far, inflation expectations seem to be holding a couple of years out, which is critical,” but he also said “the thing with inflation expectations, once they're unanchored, they're gone. Once it goes, it goes.”The rise in inflation expectations seen in the New York Fed report may be linked to change in the outlook for gasoline prices. MIXED OUTLOOK FOR PERSONAL FINANCESThe New York Fed report also found deteriorating expectations for employment, with the report noting “unemployment expectations reached the highest level since April 2020.”Households view of future finances was mixed in October.

The dollar index rose less than expected in October prompted bets the Fed would scale back its hefty interest rate hikes. Waller did say that the Fed could now start thinking about hiking at a slower pace. The comments, however, poured cold water on investor hopes for a "rapid Fed recalibration," said Adam Button, chief currency analyst at ForexLive in Toronto. The euro fell 0.24% against the dollar to $1.0322, after rising to a three-month high during Asian trading hours. The dollar index, which gauges the greenback against a basket of six other major currencies including the euro, yen, and sterling, rose 0.74% to 107.072.

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally. The S&P 500 in the previous session logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq (.IXIC) notched its best week since March. "The market is expecting the Fed to continue its hawkish rhetoric on rates. ET, the S&P 500 (.SPX) was down 17.25 points, or 0.43%, at 3,975.68, and the Nasdaq Composite (.IXIC) was down 115.13 points, or 1.02%, at 11,208.20. The S&P 500 information technology sector (.SPLRCT) was down 1.2% and among the leading sectoral decliners on the benchmark index.

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes. "The market is expecting the Fed to continue its hawkish rhetoric on rates," said Peter Cardillo, chief market economist at Spartan Capital Securities. Once they (Fed) raise rates at 50 (bps), there's a possibility that they might indicate slower rates." Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year. ET, Dow e-minis were down 50 points, or 0.15%, S&P 500 e-minis were down 11.5 points, or 0.29%, and Nasdaq 100 e-minis were down 62 points, or 0.52%.

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