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☆ Stock market today: Indexes slip as traders await Nvidia's earnings report
▼ + stars: | 2024-05-22 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

US stocks traded lower as investors waited for Nvidia's first-quarter earnings report after the close. Investors also took in comments from Fed officials, which suggested rate cuts weren't imminent. AdvertisementUS stocks slid lower on Wednesday as traders took looked ahead to Nvidia's highly anticipated first-quarter earnings report and took in the latest commentary from Federal Reserve speakers. All three benchmark indexes traded lower, while bond yields ticked higher. Markets have been dialing back their expectations for Fed rate cuts all year.

Persons: Nvidia's, —, Susan Collins, Loretta Mester Organizations: Investors, Service, Federal Reserve, Treasury, Nvidia, Bloomberg, Boston, Cleveland Fed, Fed, Here's

☆ Gen Z is getting hit hard by inflation
▼ + stars: | 2024-05-12 | by ( Krystal Hur | ) edition.cnn.com time to read: +8 min

For Gen Z, it was the Covid-19 pandemic. Why are we seeing that Gen Z is tapping into their credit more than their Millennial counterparts 10 years ago? Most Gen Z consumers are not homeowners. And so I think that’s been a big cause of what’s been driving a lot of that financial strain that Gen Z consumers have seen. The key is to not use the personal loans to pay off credit card debt and then run your credit card bills right back up after you do that.

Persons: TransUnion, Zers, Millennials, Gen Zers, Bell, Charlie Wise, we’ve, haven’t, You’re, Rishi Sunak, Hanna Ziady, Anna Cooban, Philip Jefferson, Loretta Mester, Jack, Neel Kashkari Organizations: CNN Business, Bell, New York CNN, Gross, Office, National Statistics, Bank of England, P, Federal, Cleveland Fed, Depot, US Labor Department, Cisco Systems, US Commerce Department, National Association of Home Builders, Index, Minneapolis, Walmart, Applied, Co, Baidu, Board Locations: New York, Kingdom, Wells Fargo

☆ Why the Fed keeping rates higher for longer may not be such a bad thing
▼ + stars: | 2024-04-24 | by ( Jeff Cox | ) www.cnbc.com time to read: +7 min

So the question is, are we going to have issues if rates remain higher for longer?" But financial markets, despite a recent 5.5% selloff for the S&P 500, have largely held up amid the higher-rate landscape. Higher rates can be a good signHistory tells differing stories about the consequences of a hawkish Fed, both for markets and the economy. Higher rates are generally a good thing so long as they're associated with growth. Futures market pricing implies a fed funds rate of 4.32% by December 2025, indicating a higher rate trajectory.

Persons: Jerome Powell, Mandel Ngan, Quincy Krosby, Krosby, Paul Volcker, David Kelly, Kelly, —, Goldman Sachs, Loretta Mester Organizations: Federal Reserve, Financial, Afp, Getty, LPL, Fed, Asset Management, Market, Cleveland Fed, European Union Locations: Washington , DC

☆ Trump's hush-money trial is set to heat up
▼ + stars: | 2024-04-19 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

In today's newsletter, we're looking at the first week of former President Donald Trump's criminal trial and what's at stake. What's on deck:This story is available exclusively to Business Insider subscribers. AdvertisementFormer President Donald Trump's hush-money trial — the first-ever criminal trial of a former president — got underway this week with jury selection . We did get a preview of Trump's potential defense: " Some accountant " handled the paperwork he's on trial for, Trump told reporters. AdvertisementThe trial is focused on 34 felonies alleging the Trump Organization's business records were falsified to hide other crimes.

Persons: —, Donald Trump's, CHARLY TRIBALLEAU, Drew Angerer, Tyler Le, Trump, Stormy Daniels, Daniels, Zelei, Loretta Mester, John Williams, Rebecca Zisser, David Lieb, Sundar Pichai, Demis, Google's, BI's Ben Bergman, Eddie Mulholland, Alyssa Powell, Samsung execs, Taylor Swift's, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover Organizations: Service, Business, Getty, Trump, Cleveland Fed, York Fed, …, Bank of America, Google, Android, Bankers, Jefferies, Investor Conference, Samsung, Korea Economic, Disney, Warner Bros, American Express, Procter, Gamble, Poets Department Locations: Israeli, Iran, Israel, Florida, Korea, New York, London

☆ Fed officials cast more doubt on the timing of rate cuts this year
▼ + stars: | 2024-04-18 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Read previewFederal Reserve officials heaped more doubt on the timing of rate cuts this year, echoing Chair Jerome Powell in stating that the path to 2% inflation looks uncertain. The Fed has projected three rate cuts to come by the end of 2024. Fed Chair Powell suggested earlier in the week that rate cuts could be delayed, causing stocks to slide. Inflation risks haven't been lost on investors, who have been steadily dialing back their expectations for Fed rate cuts over the last few months. Markets are now expecting just one or two rate cuts by the end of the year, according to the CME FedWatch tool, down from six cuts that were anticipated at the start of 2024.

Persons: —, Jerome Powell, Loretta Mester, Mester, Michelle Bowman, Bowman, John Williams, It's, Williams, Powell, haven't Organizations: Service, Cleveland Fed, Business, York Fed

☆ Americans are savings less these days. Here’s why and what that means
▼ + stars: | 2024-04-14 | by ( Bryan Mena | ) edition.cnn.com time to read: +7 min

Washington CNN —Americans haven’t been stashing money into their savings accounts like they used to, according to government statistics. Put together, this may have resulted in “a structurally lower saving rate,” according to the report. What does the lower saving rate of nowadays say about the US consumer? Households are continuing to spend at these elevated rates and one reason is because of the lower saving rate. You’re just not seeing a reversal back to pre-Covid levels, which isn’t shocking when you look back historically to what has happened to the saving rate.

Persons: haven’t, “, Wells, Bell, Shannon Seery Grein, There’s, they’ve, we’ve, Matt Egan, ” Paul Knopp, Read, Goldman Sachs, Charles Schwab, Lorie Logan, Mary Daly, Johnson, Morgan Stanley, Jerome Powell, Loretta Mester, John Williams, Raphael Bostic, Austan Goolsbee Organizations: Washington CNN, Wells, KPMG, CNN, Gallup, T Bank, US Commerce Department, National Association of Home Builders, China’s National Bureau of Statistics, Johnson, Bank of America, PNC, The Bank of New York Mellon, Northern Trust, United Airlines, Federal Reserve, Abbott Laboratories, Discover, Citizens, Cleveland Fed, Taiwan Semiconductor Manufacturing, Netflix, Alaska Air, National Association of Realtors, Fed, US Labor Department, Procter & Gamble, American Express . Chicago Fed Locations: Wells Fargo, United States, Europe, UnitedHealth, Blackstone

☆ 3 things rattling markets this week
▼ + stars: | 2024-04-04 | by ( Krystal Hur | ) edition.cnn.com time to read: +7 min

The S&P 500 tumbled the first two trading days of the new quarter and is down 0.8% for the week after paring back some of its losses on Wednesday. Some Fed officials revealed at the central bank’s policy meeting last month that they see fewer rate cuts than the three they forecast last December for 2024. Traders see a 63% expectation that the Fed cuts rates in June, a drop from more than 70% a week earlier, according to the CME FedWatch Tool. “With Middle East tensions on the rise, OPEC+ supply side measures have pushed crude oil volatility down,” BofA strategists wrote in a Wednesday report. “Adding to a complex backdrop, we now estimate that improving economic growth expectations have helped push global oil markets into a deficit.”The price of gold has also climbed this week.

Persons: New York CNN — Stocks, “, ”, Brent Schutte, Jerome Powell, •, Loretta Mester, Raphael Bostic, Brent, Michael Shvartsman, Gerald Shvartsman, Donald Trump’s, Matt Egan, “ Michael, ” Damian Williams, Bruce Garelick, ” Williams, ” Read, Joe Biden, Sean Lyngaas, China Nicholas Burns, Antony Blinken, Read Organizations: CNN Business, Bell, New York CNN —, Treasury, FactSet, Northwestern Mutual Wealth Management, Hawkish, San Francisco Fed, Stanford University, Wednesday, • Cleveland Fed, Atlanta Fed, CNBC, Traders, Organization of, Petroleum, West Texas, Brent, Bank of America, Trump Media, Trump Media & Technology Group, DWAC, Southern, of, Acquisition Corporation, “, Microsoft, US, Department of Homeland Security, CNN Locations: New York, OPEC, Florida, of New York, Washington, China

☆ 10-year Treasury yield edges higher as investors await economic data
▼ + stars: | 2024-04-03 | by ( Sam Meredith | In Samuelmeredith | ) www.cnbc.com time to read: +2 min

Yields and prices move in opposite directions, and one basis point equals 0.01%. The 2-year Treasury note yield was up around 1 basis point at 4.709%. The 10-year Treasury note briefly broke above 4.4% in intraday trade on Tuesday to notch its highest level since late November. The 10-year Treasury note yield moved higher on Wednesday, building on gains from the previous session as investors await the release of further U.S. economic data. The market moves come as investors track economic data and closely monitor clues from Fed policymakers about the expected number of interest rate cuts in 2024.

Persons: Loretta Mester, Mary Daly, —, Jeff Cox Organizations: Treasury, Traders, Cleveland Federal, San Francisco Fed, PMI, Institute for Supply Management Locations: U.S

☆ CNBC Daily Open: A projection is not a promise
▼ + stars: | 2024-04-03 | by ( Clement Tan | In Clemtan | ) www.cnbc.com time to read: +2 min

Spencer Platt | Getty Images News | Getty ImagesThis report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. What you need to know todayThe bottom lineU.S. Federal Reserve officials are dampening rate cut expectations again, and again. In comments echoing those of the Federal Open Market Committee's two weeks ago, San Francisco Fed President Mary Daly said Tuesday she expects cuts this year — but wants to see more convincing evidence that inflation has been subdued. "Three rate cuts is a projection, and a projection is not a promise," Daly said.

Persons: Spencer Platt, Mary Daly, Daly, Loretta Mester, Vishnu Varathan, —, Jeff Cox Organizations: New York Stock Exchange, Getty, CNBC, Federal Reserve, Federal, San Francisco Fed, Cleveland Federal, Malaysian, U.S Locations: New York City, U.S, Asia, Japan

☆ Cleveland Fed President Loretta Mester: Substantial progress has been made on inflation
▼ + stars: | 2024-04-02 | 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 EmailCleveland Fed President Loretta Mester: Substantial progress has been made on inflationCNBC’s Steve Liesman joins ‘Halftime Report’ to discuss the latest comments from Cleveland Fed President Loretta Mester.

Persons: Loretta Mester, Steve Liesman Organizations: Cleveland, Cleveland Fed

☆ Fed's Mester still expects rate cuts this year, but rules out May
▼ + stars: | 2024-04-02 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Cleveland Federal Reserve President Loretta Mester said Tuesday she still expects interest rate cuts this year, but ruled out the next policy meeting in May. Should that continue, rate cuts are likely, though she didn't offer any guidance on timing or extent. While looking for rate cuts, Mester said she thinks the long-run federal funds rate will be higher than the long-standing expectation of 2.5%. After the March meeting, the long-rate rate projection moved up to 2.6%, indicating there are other members leaning higher. Mester noted the rate was very low when the Covid pandemic hit and gave the Fed little wiggle room to boost the economy.

Persons: Loretta Mester, Mester Organizations: Cleveland Federal, Market Locations: Cleveland

☆ Everyone is worried about inflation. Here’s why it’s tracked two different ways
▼ + stars: | 2024-03-12 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

Housing, housing and more housingThe housing sector carries more than four times as much weight in CPI compared to the Fed’s preferred inflation gauge. But, with PCE, housing has a much more limited impact on the inflation index. Both indexes are faulted for using this metric to calculate housing inflationBoth indexes use a widely criticized metric called owners’ equivalent rent (OER) to track housing inflation. But it can often take months for these trends to show up in either the PCE or CPI housing indexes. Another issue with using OER to track housing inflation is that it doesn’t really affect homeowners.

Persons: Joe Biden, Frederic J . Brown, ” Organizations: New, New York CNN, Federal, Cleveland Federal Reserve, PCE, Bureau of Labor Statistics, Getty, Commerce Department, Bank of America Locations: New York, November’s, AFP

☆ Premarket stocks: Why another unexpectedly hot jobs report could derail markets
▼ + stars: | 2024-03-08 | by ( Krystal Hur | ) edition.cnn.com time to read: +7 min

New York CNN —Wall Street was taken aback by the US labor market’s resilience in January. Another unexpectedly hot report could shake things up again. The January jobs report showed that the US economy added a stunning 353,000 jobs that month and the unemployment rate stayed at 3.7%. The new EU regulations force sweeping changes on some of the world’s most widely used tech products, including Apple’s app store, Google search and messaging platforms, including Meta’s WhatsApp. The broad obligations apply only to the EU, which could leave tech users in the United States and other markets looking longingly at some of the features Big Tech is rolling out in response to the European directive.

Persons: Jerome Powell, he’s, “, ” Powell, Bonnie Cash, —, ’ ”, BeiChen Lin, It’s, Loretta Mester, ”, José Torres, Meta’s, Brian Fung, Apple, Bing, Read, Elisabeth Buchwald, NYCB, Steven Mnuchin’s, Alessandro DiNello, ” Read Organizations: CNN Business, Bell, New York CNN, Federal, Financial, Capitol, Reuters, Traders, Russell Investments, ” Cleveland Federal, CNBC, Market, Interactive Brokers, Apple, Google, Union citizens, Big Tech, New York Community Bank, Silicon Valley Bank, Liberty Strategic Capital Locations: New York, Washington ,, United States, NYCB, Silicon

☆ A bigger pool of American workers could continue to slow inflation even further
▼ + stars: | 2024-03-03 | by ( Bryan Mena | ) edition.cnn.com time to read: +7 min

Now, as the Federal Reserve faces the final stretch of its historic inflation battle, a bigger pool of workers could slow inflation even further. That then begs the question: How much more can better labor supply slow inflation? The US Labor Department releases January figures on job openings, quits, hires and layoffs. The US Labor Department reports the number of new applications for jobless benefits in the week ended March 2. China’s National Bureau of Statistics releases February inflation data.

Persons: Mary Daly, “, ” Sarah House, Michael Gapen, That’s, Jack Bantock, ’, ”, Richard Felton, Thomas, ’ ”, Patrick Harker, Ross, Nordstrom, Michael Barr, Campbell Soup, Foot, Jerome Powell, Loretta Mester Organizations: DC CNN, Federal Reserve, San Francisco Fed, National Association for Business Economics, Labor, CNN, Bank of America, White House’s Council, Economic Advisers, English Premier League, Chelsea, Burnley, Philadelphia Fed, Target, P Global, Institute for Supply Management, US Commerce Department, Abercrombie, Fitch, Financial Services, The Bank of Canada, US Labor Department, Broadcom, Costco, Eagle Outfitters, Potbelly, Banking, Housing, Urban Affairs, European Central Bank, Cleveland Fed, National Bureau of Statistics Locations: Washington, San, Wells, United States, London, JD.com, Kroger, Burlington, DocuSign

☆ 10 reasons the Fed won't cut rates in 2024, according to a chief economist
▼ + stars: | 2024-03-01 | by ( Aruni Soni | ) www.businessinsider.com time to read: +3 min

Apollo chief economist Torsten Slok laid out 10 reasons the Fed won't cut rates in 2024. AdvertisementAdd Apollo chief economist Torsten Slok to the growing chorus of people skeptical the US will see a rate cut this year. "As a result, the Fed will not cut rates this year, and rates are going to stay higher for longer." Underlying inflation trends are moving higher, not coolingBLS, Cleveland Fed, Atlanta Fed, Haver Analytics, Apollo Chief Economist3. RB of Atlanta, NFIB, Haver Analytics, Apollo Chief Economist.

Persons: Torsten Slok, Slok, —, Jerome Powell Organizations: Service, Bloomberg, Apollo, Cleveland Fed, Atlanta Fed, BEA, Haver, RB Locations: Atlanta, NFIB

☆ Asia markets mostly poised to track Wall Street gains; Japan to fall
▼ + stars: | 2024-02-07 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Cleveland Federal Reserve President Loretta Mester on Tuesday became the latest central banker to advocate a patient approach to cutting interest rates this year. Like several other officials who have spoken recently, Mester said she's not ready to start easing policy until she gains more confidence that inflation is on a stable path towards the Fed's 2% goal. Having a strong economy allows policymakers to hold off on any dramatic moves, she added. "My base case is that we will do so at a gradual pace so that we can continue to manage the risks to both sides of our mandate." Markets have moved back expectations for the first cut to May, with five total quarter percentage point moves lower priced in, according to the CME Group's FedWatch futures gauge.

Persons: Loretta Mester, Mester, she's, Jeff Cox Organizations: Cleveland Federal, Market

☆ Stock futures are little changed after S&P 500 and Dow slide from record highs: Live updates
▼ + stars: | 2024-02-05 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

S&P 500 futures also inched down 0.1%, while Nasdaq 100 futures slipped just 0.03%. During Monday's main trading session, the S&P 500 lost 0.32%, pulling back from its record high from last week that was powered by megacap tech stocks. "There's a lot of momentum, but I'm worried about [the S&P 500 at] 20 times earnings, and that the Fed's not going to live up to [rate] cut expectations. And I don't see how we get double-digit earnings growth," Doll said on CNBC's "Closing Bell: Overtime" on Monday. On the economic front Tuesday, Wall Street will be keeping an eye out for the New York Fed's household debt and credit report for the fourth quarter.

Persons: Dow, Jerome Powell, Bob Doll, Doll, — I'm, Loretta Mester, Susan Collins, Eli Lilly, Amgen Organizations: New York Stock Exchange, Federal Reserve, Dow Jones, Nasdaq, Palantir Technologies, NXP, Crossmark, Investments, New, Cleveland Fed, Boston Fed, Boeing, Spirit, DuPont, Grill, Ford Locations: New York

☆ A soft landing is now likely. But Americans will still deal with unaffordable housing
▼ + stars: | 2024-02-04 | by ( Bryan Mena | ) edition.cnn.com time to read: +7 min

In a letter days before the Fed’s decision Wednesday to hold interest rates steady at a 23-year high, Democratic US senators blasted the central bank for America’s housing woes. In 2021 when the Fed’s key interest rate was near zero, home-price growth soared at a historic double-digit pace, according to the S&P CoreLogic Case-Shiller National Home Price Index. Divounguy said that the average 30-year fixed mortgage rate will likely not fall below 6% this year. That way we can actually start heading in the right direction with affordability and have that be sustainable and not just a short-term interest rate phenomenon,” she said. Richmond Fed President Thomas Barkin delivers remarks.

Persons: Valerie Plesch, Orphe Divounguy, Freddie Mac, it’s, Fannie Mae, Divounguy, ” Daryl Fairweather, Trump, Jerome Powell, Donald Trump, Powell, David Goldman, Alexandra Ross, ” Trump, Maria Bartiromo, Joe Biden, Estee Lauder, Tyson, Raphael Bostic, Eli Lilly, Loretta Mester, Walt Disney, Adriana Kugler, Thomas Barkin, Michelle Bowman, Ralph Lauren, Armour Organizations: CNN Business, Bell, DC CNN, Federal Reserve, Democratic, Eccles Federal Reserve, Bloomberg, Getty, CNN, National Association of Realtors, Fox Business, Bureau of Labor Statistics, Trump, Fed, Caterpillar, Tyson Foods, P Global, Institute for Supply Management, Atlanta Fed, Toyota, UBS AG, Chipotle, Cleveland Fed, Walt, CVS, PayPal, Brands, Fox, The Carlyle, News Corporation, New York Times Company, Mattel, Spirit Airlines, US Commerce Department, China’s National Bureau of Statistics, ConocoPhillips, Unilever, Duke Energy, Expedia, Warner Music Group, Tenet Healthcare, Richmond Fed, Pepsico, Honda Locations: Washington, Washington , DC, CAVA

☆ There's little reason to be optimistic about a soft landing this year as the 'runway is in an earthquake zone,' Harvard economist says
▼ + stars: | 2024-02-02 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Growing hope for an economic soft landing is misplaced, economist Ken Rogoff wrote this week. The Harvard economist sees the runway for the economy in an "earthquake zone" in 2024. AdvertisementThere's little reason to be optimistic about a soft-landing, as the economy is set to land in an "earthquake zone" in 2024, according to top economist Ken Rogoff. Advertisement"Despite the widespread belief that the global economy is headed for a soft landing, recent trends offer little cause for optimism. The US also faces trouble as the national debt continues to surge and interest rates look poised to stay higher-for-longer.

Persons: Ken Rogoff, —, Doom, Rogoff Organizations: Harvard, Service, Syndicate, International Monetary Fund, Fed, Federal Reserve, New York Fed, Cleveland Fed Locations: China, Europe, Ukraine, Russia

☆ Fed’s Barkin: March rate cut isn’t out of the picture. ‘You make the call when you get to the meeting’
▼ + stars: | 2024-01-22 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

The positive economic developments as well as Fed officials’ forecasts for at least three rate cuts this year had investors eying a March pivot. Meanwhile, Barkin — who will also be voting on Fed policy decisions at meetings this year — isn’t ruling March out entirely. For Barkin, “the breadth of inflation settling” and “the consistency of inflation settling” matter in his evaluation of whether the inflation rate is approaching the Fed’s target. Unlike many Fed officials, Barkin does not have a PhD in economics but has an MBA and a law degree. Investors will be paying close attention to any hints of the timing of rate cuts in the central bank’s latest statement and Fed Chair Jerome Powell’s press conference.

Persons: Tom Barkin, Barkin, eying, Christopher Waller, “, Loretta Mester, Barkin —, isn’t, ” Barkin, ”, ” ‘ There’s, John Williams, Jerome Powell, Williams, “ There’s, Jerome Powell’s Organizations: New, New York CNN, Richmond Federal, CNN, Fed, Cleveland Fed, FactSet, Richmond Fed, McKinsey, ” New York Fed, Raleigh Chamber of Commerce, That’s Locations: New York

☆ Markets tried to fight the Fed on rate cuts. It didn’t work
▼ + stars: | 2024-01-21 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

Now there’s roughly a 50/50 chance that the Fed could either cut rates or hold them steady in March, according to futures. A few developments this past week tempered investors’ optimism, and now the possibility of a rate cut in March could be completely thrown out the window, according to economists. He echoed other Fed officials who’ve recently said that beginning to cut rates in March is just not realistic. In addition to officials’ comments, recent economic data also doesn’t bode well for a March rate cut. Markets are expecting twice as many rate cuts this year than what Fed officials themselves estimated in their latest economic projections released in December.

Persons: ’, Christopher Waller, ”, who’ve, Loretta Mester, “, Mary Daly, it’s, Daly, bode, Waller, ” Bill Adams, ” Daniel Altman, Jerome Powell’s, Donald Trump, Christine Lagarde, couldn’t, Jamie Dimon, Trump, Joe Biden, Bank of America’s Brian Moynihan, OpenAI’s Sam Altman, Johnson, Lockheed Martin, Levi Strauss, Booz Allen Hamilton, CNN’s Elisabeth Buchwald Organizations: CNN Business, Bell, DC CNN — Federal Reserve, Fed, Brookings Institution, ” Cleveland Fed, Bloomberg, ” San Francisco Fed, Fox Business, Commerce Department, Labor Department, Employers, Comerica Bank, CNN, Biden, Trump, Economic, European Central Bank, ”, JPMorgan, Bank of America’s, United Airlines, The Bank of Japan, Netflix, General Electric, Procter, Gamble, Johnson, Verizon, Lockheed, Haliburton, Tesla, IBM, Bank of Canada, Global, American Airlines, Southwest Airlines, Alaska Airlines, Co, Visa, Intel, Mobile, Comcast, Capital, US Commerce Department, Chicago Fed, US Labor Department, American Express, Colgate, Palmolive, Booz, National Association of Realtors Locations: Washington, ” San, East, Iran, Davos, Switzerland, Iowa, Swiss, United States

☆ Inflation is stuck and the Fed can't lower prices without damaging the economy, top economist Mohamed El-Erian says
▼ + stars: | 2024-01-12 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Inflation looks to be stuck above the Fed's target rate, top economist Mohamed El-Erian said. If the Fed lowers inflation to 2% too quickly, it risks "crushing" the economy, El-Erian has warned. AdvertisementThe Federal Reserve's inflation fight has hit a wall, and central bankers can't lower prices in the economy any further without causing damage, according to top economist Mohamed El-Erian. El-Erian warned last year that inflation would likely get stuck around the 3%-4% mark, thanks to persistent pressures in the economy that will push prices higher, he said. Other commentators on Wall Street have warned of the possibility of resurgent inflation as price pressures in the economy linger.

Persons: Mohamed El, Erian, — Organizations: Service, Allianz, Bureau of Labor Statistics, Bloomberg, CPI, stoke, El, New York Fed, Cleveland Fed Locations: El, That's, Red

☆ Dollar down on day, but off lows after hotter than expected inflation
▼ + stars: | 2024-01-11 | by ( ) www.cnbc.com time to read: +3 min

The headline U.S. Consumer Price Index (CPI) rose 0.3% last month, for an annual gain of 3.4%, against expectations of 0.2% and 3.2%, respectively. Traders are pricing in aggressive expectations for rate cuts this year, with the Fed seen as beginning to cut rates in March. But "today's CPI report suggests that the Fed's initial rate cut may be later than the market is hoping for," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "The question everyone is struggling with is what kind of inflation regime we are in - are we still in a 2010s era of low growth, low inflation and we're still just working through the end of the pandemic adjustment and then we're back into that?" The dollar index was last down 0.05% on the day at 102.29.

Persons: Bitcoin, Adam Button, Quincy Krosby, Button, it's, Loretta Mester, Thomas Barkin, Sterling Organizations: Federal Reserve, Consumer, Index, Fed, ForexLive, Traders, Financial, Cleveland Fed, Richmond Fed, U.S . Securities, Exchange Commission, Wednesday Locations: Toronto, Charlotte , North Carolina, U.S

☆ Gold slides on brewing concerns of U.S. rate cuts still far off
▼ + stars: | 2024-01-11 | by ( ) www.cnbc.com time to read: +2 min

Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Spot gold was down 0.1% at $2,024.99 per ounce, after rising as much as 0.8% before the data. The dollar index extended gains after data showed U.S. consumer prices rose more than expected in December, which could delay a much anticipated U.S. rate cut in March. Traders see a 67% probability of a rate cut in March, according to the CME FedWatch tool, compared with about a 71% chance seen before the report. Higher rates dim the appeal of gold, which pays no interest.

Persons: Gold, hawkish, Loretta Mester, Tom Barkin, Phillip Streible, Streible, Tai Wong, Silver Organizations: Aurum, Federal Reserve, Cleveland Fed, Richmond Fed, Blue, Traders Locations: Chicago, New York

Periods of high inflation would offset those when inflation was low as occurred between the financial crisis and the pandemic. Those concerns may not matter anymore if the pandemic has driven inflation and interest rates chronically higher. Speaking at a Boston Fed labor market conference in November, Kohn said the new framework showed the risks of not keeping inflation at bay to begin with. "Probing" for maximum employment "can't ignore...inflation risks," Kohn said, calling for a return to a strategy disavowed in the last review. "I think preemptive tightening is best-practice central banking, and I hope they return to allowing that."

Persons: Joshua Roberts, Jerome Powell, There's, Miesha Williams, Powell, Charles Evans, Evans, Fed, Loretta Mester, Austan Goolsbee, Goolsbee, Donald Kohn, Kohn, Howard Schneider, Dan Burns, Andrea Ricci Organizations: Federal Reserve, REUTERS, Rights, U.S, Federal, Spelman College, Reuters, Chicago Fed, Chicago, Cleveland Fed, Boston Fed, Thomson Locations: Washington , U.S, Atlanta

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