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☆ Inflation Fight Has Come Down to Housing, Chicago Fed’s Goolsbee Says
▼ + stars: | 2023-12-02 | by ( Bob Fernandez | ) www.wsj.com time to read: 1 min

“The key thing we have to watch is housing,” Chicago Fed President Austan Goolsbee said Friday. He is shown above at The Wall Street Journal Global Food Forum in Chicago in June. Photo: Kevin Sikorski for The Wall Street JournalInflation seems on track toward the Federal Reserve’s 2% target and now the big question is what will happen with housing in 2024, a top Fed official said Friday. “It was absolutely where we wanted it to be,” Chicago Fed President Austan Goolsbee said of the government’s latest inflation data.

Persons: Austan Goolsbee, Kevin Sikorski Organizations: Chicago Fed, Wall Street, Food Forum, The Wall, Federal, Fed Locations: Chicago

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

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2023. Market participants now await policy comments from Powell at two separate discussions scheduled for 11 a.m. After recent conflicting remarks from other policymakers, investors are concerned that Powell could push back against the rate cut narrative. Other officials, including Fed Governors Lisa Cook and Chicago Fed President Austan Goolsbee are also scheduled to speak during the day. Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Powell, Jerome Powell's, Dow Jones, underscoring, Sophie Lund, Yates, Hargreaves Lansdown, Lisa Cook, Austan Goolsbee, Alibaba, Morgan Stanley, danuglipron, Paula Oyibo, Shristi Achar, Shinjini Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal, Chicago Fed, P Global, ISM, Dow e, Pfizer, Marvell Technology, Automation, Thomson Locations: New York City, U.S, Bengaluru

☆ Morning Bid: Waller to Wall St, Fed's on the turn
▼ + stars: | 2023-11-29 | by ( ) www.reuters.com time to read: +6 min

A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. But back in the markets, the Fed's policy pivot was all the rage as Treasury yields and dollar plunged anew. New York Fed chief John Williams said long-term inflation expectations were anchored, reassuring and "remarkably stable". Fed futures now have the first Fed rate cut of a quarter point fully priced for May and 110bps of rate cuts by year-end. Two-year Treasury yields plunged more than 15 basis points to four-month lows of 4.66% on Wednesday, with 10-year yields hitting their lowest since mid-September - a startling drop of more than 75bps in little over a month.

Persons: Brendan McDermid, Mike Dolan, Wall, Charlie Munger, Berkshire Hathaway's Munger, Warren Buffett, Christopher Waller, Jerome Powell, Waller, John Williams, Austan Goolsbee, Michelle Bowman, Powell, Stocks, smartly, Hong, Thomas Barkin, Loretta Mester, Andrew Bailey, BoE, Andrew Hauser, Blinken, Sergey Lavrov, Jane Merriman Organizations: Wall, REUTERS, Federal Reserve, Waller . New York Fed, Chicago Fed, HK, Austria's, Holdings, Richmond Fed, Cleveland Fed, Bank of England, London, Russian, Foods, Intuit, Petco, Thomson, Reuters Locations: New York, U.S, Berkshire, Waller ., China, Europe, Vienna, North Macedonia

☆ Morning Bid: Treasuries gobbled up, oil braces for OPEC
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 17, 2023. Benchmark Treasury yields fell back more than 10 basis points to 4.37% after a total of $109 billion of 2 and 5-year notes hit the Street on Monday without much disruption. Another weak U.S. housing readout, with sub-forecast new home sales last month, perhaps flattered the post-auction moves. That's likely a mixed blessing for Federal Reserve watchers - the continued buoyancy of consumption but with increasing price discrimination. Fed futures priced about 85bps of rate cuts through next year, starting in June, though many major banks expect even more.

Persons: Brendan McDermid, Mike Dolan, That's, Hong, Louis, Christopher Waller, Michelle Bowman, Michael Barr, Austan Goolsbee, Christine Lagarde, Philip Lane, Dave Ramsden, BoE, Jonathan Haskel, Hewlett Packard, Ed Osmond Organizations: New York Stock Exchange, REUTERS, Treasuries, Treasury, Adobe Digital, Federal Reserve, Louis Fed, U.S . Treasury, Richmond Fed, Dallas Fed, . Treasury, Chicago Fed, European Central Bank, ECB, Bank of England, Citi Trends, Fluence Energy, Reuters, Reuters Graphics Reuters, Thomson Locations: New York City, U.S, Asia, Europe, United States, China, New York, St, Uxin, Canaan, Elbit

"Inflation rates are moving along pretty much like I thought," Fed Governor Christopher Waller, a hawkish and influential voice at the central bank, told the American Enterprise Institute think tank on Tuesday. If the decline in inflation continues "for several more months ... three months, four months, five months ... we could start lowering the policy rate just because inflation is lower," he said. Additional Fed rate increases remain a possibility if upcoming data includes an unexpected resurgence of price pressures, he said. But even Bowman, who like Waller is among the Fed's most hawkish officials, stopped short of outright calling for a further increase in the policy rate. New inflation data will be released on Thursday, and policymakers will also have a fresh monthly jobs report and other data in hand before they gather next month.

Persons: Christopher Waller, Bond, Waller's, Jerome Powell, Michelle Bowman, Bowman, Waller, Austan Goolsbee, Howard Schneider, Ann Saphir, Lindsay Dunsmuir, Andrea Ricci, Paul Simao Organizations: Federal Reserve, American Enterprise Institute, Fed, Spelman College, Utah Bankers Association, Chicago Fed, Conference Board, Thomson Locations: U.S, Atlanta, Salt Lake City

☆ US stocks trade mixed as investors hit pause on November rally ahead of Fed comments
▼ + stars: | 2023-11-28 | by ( Phil Rosen | ) www.businessinsider.com time to read: +1 min

Stocks traded mixed on Tuesday as investors slowed down on the November rally. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementUS stocks traded mixed on Tuesday as investors pulled back on the November rally ahead of remarks from a cadre of Federal Reserve officials. Policymakers on the docket today include Fed Governors Christopher Waller, Michelle Bowman, and Michael Barr, as well as Chicago Fed President Austan Goolsbee.

Persons: Stocks, —, Christopher Waller, Michelle Bowman, Michael Barr, Austan Goolsbee, Goldman Sachs Organizations: Traders, Federal Reserve, Service, Fed, Chicago Fed, Bank of America, RBC Capital Markets, Here's, Dow Jones

☆ Stock futures are little changed as investors assess pause in November rally: Live updates
▼ + stars: | 2023-11-27 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Stock futures are flat Monday night as traders analyzed the strong gains seen throughout November and the trading month nears its end. S&P 500 and Nasdaq 100 futures were both near flat. The Dow and S&P 500 both finished Monday's session around 0.2% lower, while the Nasdaq Composite inched down nearly 0.1%. Monday's modest retreat comes near the end of November's strong trading month, which concludes with Thursday's close. The Dow and S&P 500 are on pace to finish the month 6.9% and 8.5% higher, respectively.

Persons: Zscaler, Thursday's, Shopify, Terry Sandven, Austan Goolsbee, Christopher Waller, Michelle Bowman Organizations: New York Stock Exchange, Stock, Dow Jones Industrial, Nasdaq, Dow, Investors, Amazon, U.S, Bank Wealth Management, Federal Reserve, Chicago Fed Locations: New York City, U.S, billings

☆ There's a new CD king after bank with prior highest yield just slashed it
▼ + stars: | 2023-11-20 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

There's a new top dog when it comes to yields on 1-year certificates of deposit, according to an analysis by Stephens. Bread Financial now has the highest annual percentage yield for 1-year CDs among banks in Stephens' coverage at 5.6%. However, the online bank didn't reach the top by raising its APY. Instead, it was because LendingClub slashed its 1-year CD yield by 10 basis points to 5.55%, analyst Vincent Caintic said. "Online banks had already been cutting 1yr CD rates and this may likely continue as near-term rate expectations fall," Caintic said.

Persons: Stephens, LendingClub, Vincent Caintic, Caintic, What's, Austan Goolsbee, Jerome Powell, Michael Bloom, Jeff Cox Organizations: Bread, Federal Deposit Insurance Corporation, The Fed, Investors, Chicago Fed Locations: Stephens

“Any time we’ve had a serious cut to the inflation rate, it’s come with a major recession," Goolsbee said in an interview with The Associated Press. “And so the golden path is a ... bigger soft landing than conventional wisdom believes has ever been possible. Last week, the government reported that inflation cooled in October, with core prices — which exclude volatile food and energy prices — rising just 0.2% from September. The year-over-year increase in core prices — 4% — was the smallest in two years. The Fed tracks core prices because they are considered a better gauge of inflation's future path.

Persons: Goolsbee, we’ve, ” Goolsbee, “, Susan Collins, ” Collins, hasn't Organizations: WASHINGTON, Federal Reserve Bank of Chicago, Associated Press, Wall, Federal Reserve Bank of Boston

Speaking on CNBC, Boston Fed President Susan Collins also said the U.S. central bank must be "patient and resolute, and I wouldn't take additional firming off the table." Inflation by the Fed's preferred measure was 3.4% in September, down from its 7.1% peak last summer, but above the central bank's target. And he expressed increased confidence that the Fed can meet its inflation goal without the kind of rise in unemployment seen in the U.S. central bank's prior battles with inflation. Speaking on Thursday, Cleveland Fed President Loretta Mester, one of the central bank's more hawkish policymakers, said she had not yet assessed whether she would continue to pencil in a further rate hike. Fresh economic and interest rate projections are due to be the released at the Dec. 12-13 policy meeting.

Persons: Mary Daly, Daly, Susan Collins, Collins, Austan Goolsbee, Loretta Mester, Ann Saphir, Michael S, Pete Schroeder, Dan Burns, Balazs Koranyi, Paul Simao Organizations: Federal, San Francisco Fed, CNBC, Boston, Deutsche Bank, Chicago Fed, Fed, Cleveland Fed, Derby, Thomson Locations: Frankfurt, Germany, U.S

☆ Fed's Goolsbee expects easing shelter inflation to seal path to 2%
▼ + stars: | 2023-11-17 | by ( ) www.reuters.com time to read: 1 min

Nov 17 (Reuters) - Chicago Federal Reserve Bank President Austan Goolsbee on Friday said the U.S. central bank will "do what it takes" to bring inflation down to the Fed's 2% goal, but that inflation looks to be already on that track if housing price pressures ease as expected. "The overwhelmingly important thing of whether we are going to clearly be on path for inflation is what happens to house price inflation," Goolsbee said at the Chicago Fed's annual Community Bankers Symposium. "If we hit the targets that we expect to hit, then we would be on path to get to 2%, and that's what I call the golden path -- no recession, and it gets down -- but that housing inflation is the thing we should really keep an eye on." Reporting by Ann SaphirOur Standards: The Thomson Reuters Trust Principles.

Persons: Austan Goolsbee, Goolsbee, Ann Saphir Organizations: Chicago Federal Reserve Bank, Chicago, Thomson Locations: U.S

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 15, 2023. The yield on the 10-year Treasury note dropped further to a two-month low on Friday and was last at 4.4082%. Most megacap stocks edged higher in premarket trading, with Amazon.com (AMZN.O) and Nvidia (NVDA.O) up 0.5% and 0.3% respectively. On the economic data front, markets will monitor the housing starts data for October, scheduled for release at 8:30 a.m. ET, Dow e-minis were up 93 points, or 0.27%, S&P 500 e-minis were up 10.75 points, or 0.24%, and Nasdaq 100 e-minis were up 6.5 points, or 0.04%.

Persons: Brendan McDermid, Russell, Mohit Kumar, Austan Goolsbee, Rick Wilmer, Shristi Achar, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal Reserve, Nvidia, Materials, Jefferies, Chicago Fed, Dow e, Old Navy, ChargePoint Holdings, Thomson Locations: New York City, U.S, Europe, Bengaluru

☆ Morning Bid: Treasury yields dive as oil craters, economy softens
▼ + stars: | 2023-11-17 | by ( ) www.reuters.com time to read: +5 min

U.S. two-year Treasury yields skidded below 4.80% on Friday for the first time since September 1, with 10-year yields dropping under 4.40% to September lows too. Crude has now lost almost 25% in just six weeks - aided by the U.S. gradually lifting oil sanctions on Venezuela. The Labor Department said import prices fell a whopping 0.8% in October, the most in seven months amid a broad decline in the costs of goods - deepening the annual deflation of import prices to as much as 2.0%. Even though the dollar (.DXY), , is taking a hit from the plunge in U.S. Treasury yields, the drop in sovereign borrowing rates was mirrored across the world in Europe , even Japan . Mirroring the softening demand picture elsewhere, British retail sales volumes fell unexpectedly in October as stretched consumers stayed at home.

Persons: Lucas Jackson, Mike Dolan, plumb, Morgan, Susan Collins, Mary Daly, Austan Goolsbee, Michael Barr, Dave Ramsden, Nick Macfie Organizations: New York Stock Exchange, REUTERS, Walmart, Cisco, Alibaba, Philadelphia Federal Reserve, Labor Department, Treasury, Hong, Housing, Atlanta, Boston Federal, San Francisco Fed, Chicago Fed, Bank of England, United States, APEC, Graphics, Thomson, Reuters Locations: New York, U.S, Wall, Alibaba ., Venezuela, Europe, Japan, HK, Hong Kong, China, San Francisco

☆ US retail sales fell in October for the first time in seven months
▼ + stars: | 2023-11-15 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Americans cut their retail spending in October for the first time since March, with interest rates at a 22-year high. Retail sales, which are adjusted for seasonality but not inflation, fell 0.1% in October from the prior month, the Commerce Department reported Wednesday. October’s decline in retail spending is potentially an early sign of a slowing economy as US consumers get squeezed by higher borrowing costs and they continue to rack up credit card debt. Car sales fell 1.1% in October from September, while furniture sales declined 2% during the same period. Wednesday’s retail sales report bodes well for the Fed, since it shows spending isn’t reaccelerating or remaining stubbornly strong.

Persons: Jerome Powell, ”, Kathy Bostjancic, Austan Goolsbee, market’s, ” Goolsbee Organizations: DC CNN, Commerce Department, Federal, Nationwide, Reserve, of Labor Statistics, Chicago Fed, Detroit Economic Locations: Washington

☆ Morning Bid: Inflation on the ropes, shutdown averted
▼ + stars: | 2023-11-15 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. Much like then, the sheer scale of the yield swoon has stoked bond volatility gauges (.MOVE) too. What's more, a quarter point rate cut by May is now 80% priced and 100bps of easing through 2024 is now baked in. U.S. corporate news stays on retail later as Target reports earnings, following a beat by Home Depot on Tuesday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Brendan McDermid, Mike Dolan, Xi Jinping's, Joe Biden, Russell, Austan Goolsbee, Berkshire Hathaway, Warren Buffett, Michael Barr, Thomas Barkin, Jonathan Haskel, Xi Jinping, Bernadette Baum Organizations: New York Stock Exchange, REUTERS, Wall, Chicago Fed, Bank of America, Home Depot, Berkshire, General Motors, Procter, Gamble, Richmond Fed, Bank of England, APEC, Cisco Systems, Palo Alto Networks, Reuters, NFIB, Reuters Graphics Reuters, Thomson Locations: New York City, U.S, Wall, UK's, York, San Francisco

☆ Fed's Goolsbee sees inflation falling fast without jobless surge
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +2 min

Chicago Fed President Austan Goolsbee speaks as he heads into the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, U.S., August 24, 2023. A Labor Department report earlier on Tuesday showed the consumer price index rose 3.2% in October from a year earlier, down more than 3 percentage points from January. The Fed targets 2% inflation by a different measure, the personal consumption expenditures price index, which was 3.4% in September. Going forward, Goolsbee said he's focused on inflation data and sees overheating as a lesser risk than an external shock. "The key to further progress over the next few quarters will be what happens to housing inflation," he said.

Persons: Austan Goolsbee, Ann Saphir, Goolsbee, he's, Paul Simao Organizations: Chicago Fed, Kansas City, REUTERS, Chicago Federal, Detroit Economic, Labor Department, Fed, Thomson Locations: Kansas, Jackson Hole , Wyoming, U.S

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2023. "This is what the Fed was looking for, slowing inflation, slowing labor market and the economy's holding up at the same time." Following the data, traders erased bets the Fed will raise borrowing costs any further and piled into bets on rate cuts starting by May. U.S. Treasury yields dropped, with the two-year yield , which best reflects short-term interest rate expectations, sliding to two-week lows. Advancing issues outnumbered decliners by a 13.89-to-1 ratio on the NYSE and by a 5.44-to-1 ratio on the Nasdaq.

Persons: Brendan McDermid, Thomas Hayes, Russell, Jerome Powell, Michael Barr, Loretta Mester, Austan Goolsbee, Mike Johnson, Sruthi Shankar, Amruta, Ankika Biswas, Shinjini Organizations: New York Stock Exchange, REUTERS, Companies, Dow, Nasdaq, Federal, Reuters, May, U.S, Treasury, Nvidia, Banking Committee, Cleveland Fed, Chicago Fed, U.S . House, Dow Jones, Inc, NYSE, Thomson Locations: New York City, U.S, New York, United States, Bengaluru

REUTERS/Alexander Manzyuk Acquire Licensing RightsSummaryCompanies US consumer prices unchanged in OctoberU.S. dollar eyes worst session in a yearSilver, palladium gain more than 3%Nov 14 (Reuters) - Gold prices gained 1% on Tuesday as the dollar and Treasury yields retreated after softer-than-expected U.S. consumer inflation data fuelled bets that the Federal Reserve may be done hiking interest rates. U.S. consumer prices were unchanged in October and underlying inflation showed signs of slowing. We are expecting a significant deterioration in the data over the course of the fourth quarter, which should weaken dollar and support gold," said Daniel Ghali, commodity strategist at TD Securities. "Over the next six months, we're looking at gold prices to rally towards $2,100 per ounce." Reuters GraphicsBoosting bullion's appeal, the dollar index (.DXY) fell 1.4%, its biggest daily decline in one year, while benchmark 10-year Treasury yields eyed their worst day in eight months after the inflation data.

Persons: Alexander Manzyuk, Austan Goolsbee, Daniel Ghali, Commerzbank, Ashitha Shivaprasad, Emelia Sithole, Shilpi Majumdar Organizations: REUTERS, Companies, Treasury, Federal, Chicago Fed, TD Securities, Reuters, Thomson Locations: Novosibirsk, Siberian, Russia, U.S, Bengaluru

☆ Morning Bid: Murky US inflation picture
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +6 min

According to consensus forecasts at least, U.S. headline inflation is expected to have retreated sharply again in October back toward midyear lows around 3.3%. But underlying 'core' inflation is expected to stay stickier at an unchanged annual rate of 4.1% last month and still more than twice the Fed's target. But the Fed may want to hang tough long enough into a slowing economy to ensure that inflation is squeezed back to its 2% goal. And perhaps the negative tilt on October core inflation going into today's release leaves more room for a positive surprise. The International Energy Agency on Tuesday raised its oil demand growth forecasts for this year and next despite the weakening economic picture.

Persons: Lucas Jackson, Mike Dolan, Goldman Sachs, Xi Jinping, Joe Biden, Biden, Xi, Shunichi Suzuki, Philip Jefferson, Loretta Mester, Austan Goolsbee, Michael Barr, Huw Pill, Christina Fincher Organizations: New York Stock Exchange, REUTERS, New, Bank of America's, Treasury, International Energy Agency, U.S, Economic Cooperation, Reuters, Bank of Japan, Japan's Finance, Home, Federal, Cleveland Fed, Chicago Fed, Banking, Housing, Urban Affairs, Bank of England, Thomson Locations: New York, U.S, California, San Francisco, Asia, China, Japan, Teck, United States

☆ Chicago Fed President Austan Goolsbee: Key to progress on inflation is housing
▼ + stars: | 2023-11-14 | 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 EmailChicago Fed President Austan Goolsbee: Key to progress on inflation is housingCNBC's Steve Liesman joins 'Halftime Report' to discuss the latest news on the recent CPI report.

Persons: Austan Goolsbee, Steve Liesman Organizations: Chicago

☆ The Fed is terrified Americans could get used to high inflation. It may already be happening.
▼ + stars: | 2023-11-12 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

Fed officials don’t expect inflation to reach 2% until 2026, according to their latest economic projections released in September. If there’s one thing that would make the Fed quake in its boots, it would be worsening inflation expectations. The keyword there is “timely.”Sticky inflation could possibly “un-anchor” inflation expectations or elicit a consistent deterioration in Americans’ perception on inflation. “The Fed really just wants people to not expect inflation will run at 4% forever.”So what’s kept inflation expectations in check this long? For individuals and married people filing separately, the new federal standard deduction will increase to $14,600, up from $13,850 this year.

Persons: we’ve, Raphael Bostic, “, ” Luke Tilley, ”, Jerome Powell, presser, Powell, Michelle Bowman, Tilley, ” Drew Matus, what’s, Matus, “ They’re, Jeanne Sahadi, Lisa Cook, Phillip Jefferson, Michael Barr, Loretta Mester, Austan Goolsbee, John Williams, Christopher Waller, Mary Daly Organizations: DC CNN, Federal Reserve, Fed, University of Michigan’s, Atlanta Fed, Bloomberg, Investment Advisors, CNN, ”, New York Bankers Association, New York Fed, MetLife Investment Management, IRS, Tyson Foods, Depot, US Labor Department, National Federation of Independent Business, China’s National Bureau of Statistics, Target, National Statistics, US Commerce Department, Walmart, National Association of Home Builders, San Francisco Fed Locations: Washington, Wilmington, Palm Beach , Florida

☆ Austan Goolsbee Says Fed Will Need to Monitor Risks of Overshooting on Rates
▼ + stars: | 2023-11-09 | by ( Nick Timiraos | ) www.wsj.com time to read: 1 min

Austan Goolsbee, Chicago Fed president, says how long to hold rates at the current level could be shaped by whether external shocks hit the economy. Photo: David Paul Morris/Bloomberg NewsA Federal Reserve official said the central bank will need to pay close attention to the effects of higher longer-term bond yields to make sure they don’t slow the economy more than expected over the coming year. Austan Goolsbee , president of the Federal Reserve Bank of Chicago, said in an interview Wednesday the recent run-up of longer-term borrowing costs could become more important as the central bank shifts its focus from how high to raise interest rates and toward how long to hold them near a 22-year high.

Persons: Austan Goolsbee, David Paul Morris Organizations: Chicago Fed, Bloomberg, Federal Reserve, Federal Reserve Bank of Chicago

However, the rally has run out of steam as several Fed policymakers this week pushed back against market expectations that the central bank will begin cutting interest rates soon. "The market got carried away regarding how soon it thought we would be seeing interest rate cuts being delivered. "But that was never the case and comments from various CB (central bank) officials this week have very much opened eyes to this." On the earnings front, shares of Walt Disney (DIS.N) rose 4.1% in premarket trade after the entertainment company exceeded Wall Street estimates for quarterly profit on higher attendance at its Shanghai and Hong Kong theme parks. MGM Resorts International(MGM.N) added 3.5% on beating third-quarter estimates for profit and revenue as the casino operator benefited from easing pandemic restrictions.

Persons: Brendan McDermid, Stuart Cole, Austan Goolsbee, Jerome Powell, Thomas Barkin, Walt Disney, Amruta Khandekar, Maju Samuel Organizations: Intercontinental Exchange Inc, New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal Reserve, Treasury, Equiti, CB, Chicago Fed, Wall, International Monetary Fund, Richmond Fed, Labor Department, Dow e, Walt, Arm Holdings, Theatre, AMC Entertainment, MGM Resorts International, Thomson Locations: U.S, Shanghai, Hong Kong

☆ CNBC Daily Open: Strange, but good, things are happening in markets and the economy
▼ + stars: | 2023-11-08 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +3 min

Spencer Platt | Getty Images News | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Meanwhile, the 10-year Treasury yield fell around 10 basis points to 4.569% and the 2-year yield slipped 3 basis points to 4.915%. As Treasury yields serve as the benchmark for interest rates on loans and cash investments, sinking yields generally benefit rate-sensitive companies more. Both the economy and markets have truly acted in strange, unprecedented ways ever since the pandemic.

Persons: Spencer Platt, they're, WTI's, that's, Alastair Pinder, Austan Goolsbee, — Organizations: New York Stock Exchange, Getty, CNBC, West Texas Intermediate, Brent, Treasury, Big Tech, Amazon, Nasdaq, Dow Jones, Dow, U.S . Federal, HSBC, Chicago Federal Locations: New York City, That's, Israel

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