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For inflation to durably return to the Fed's 2% target, it "is likely to require a period of below-trend growth and some further softening in labor market conditions," Powell said. There is evidence the labor market is cooling, Powell said, with some important measures approaching levels seen even before the pandemic. Those include new geopolitical risks to the economy from the "horrifying" attack on Israel by the Palestinian militant Hamas group, Powell said. "Persistent changes in financial conditions can have implications for the path of monetary policy," Powell said, with higher market-based interest rates, if sustained, doing the same job as Fed rate increases. "We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters," Powell said.

Persons: Jerome Powell, Evelyn Hockstein, Powell, Dan Burns, Ann Saphir, Chizu Nomiyama, Andrea Ricci Organizations: . Federal, Federal Reserve, REUTERS, Economic, of New, Fed, Hamas, Federal, U.S, Thomson Locations: Washington , U.S, U.S, of New York, Israel

Powell, however, added the economy's strength and continued tight labor markets could warrant further Federal Reserve interest rate increases. Third-quarter earnings for S&P 500 companies are now estimated to grow at 1.6% compared with expectations of a 2.2% increase last week, LSEG data showed. Yields on the 2-year note, which best reflects short-term interest rate expectations, fell , while that on the 10-year note edged higher to 4.9215%, near the 5% level last seen in 2007. Communications services (.SPLRCL) and information technology (.SPLRCT) led gains amongst the major S&P 500 sectors. On the earnings front, Blackstone (BX.N) slipped 6.0% as the world's largest private equity firm's third-quarter distributable earnings fell more than expected due to a decline in asset sales in its real estate business.

Persons: Brendan McDermid, Jerome Powell, Powell's, CME's, Powell, Chris Zaccarelli, Russell Hackmann, Austan Goolsbee, Atlanta's Raphael Bostic, Philadelphia's Patrick Harker, Shubham Batra, Shashwat Chauhan, Dhanya Ann Thoppil, Saumyadeb Chakrabarty, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Netflix, Dow, Nasdaq, Economic, of New, Traders, Independent, Alliance ., Hackmann Wealth Partners, Investors, Chicago Fed, Dow Jones, Communications, Blackstone, Lam Research, NYSE, Thomson Locations: New York City, U.S, of New York, United States, Britain, France, Bengaluru

☆ Jerome Powell Signals Fed Will Extend Interest-Rate Pause
▼ + stars: | 2023-10-19 | by ( Nick Timiraos | ) www.wsj.com time to read: 1 min

Speaking at the Economic Club of New York, Federal Reserve Chair Jerome Powell described the U.S. economy as ‘resilient’ and said he doesn’t believe monetary policy is too tight. Photo: Bess Adler/BloombergFederal Reserve Chair Jerome Powell suggested that he is pleased with inflation’s decline this summer and that the central bank is unlikely to raise interest rates again unless it sees clear evidence that stronger economic activity jeopardizes such progress. “Given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” Powell said in prepared remarks for a Thursday lunchtime address in New York. “Incoming data over recent months show ongoing progress toward both” of the Fed’s goals to maintain stable inflation and strong employment.

Persons: Jerome Powell, Bess Adler, ” Powell Organizations: Economic, of New, Federal, Bloomberg Locations: of New York, U.S, New York

☆ Fed Chair Powell: Continued economic strength could warrant further tightening
▼ + stars: | 2023-10-19 | 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: Continued economic strength could warrant further tighteningCNBC's Steve Liesman joins 'Halftime Report' to discuss Fed Chair Jerome Powell's comments from the Economic Club of New York, which focused on the state of inflation, rate hikes, and labor market conditions.

Persons: Powell, Steve Liesman, Jerome Powell's Organizations: Economic, of New Locations: of New York

☆ Higher rates may not threaten these stocks that generate cash and have low debt
▼ + stars: | 2023-10-19 | by ( Brian Evans | ) www.cnbc.com time to read: +3 min

The country's largest energy producer Exxon Mobil also made the list, with a free operating cash flow three-year CAGR of nearly 100%. Exxon Mobil also maintains a nearly 21% debt-to-equity ratio. Average consensus analyst forecasts imply more than 13% further upside for Exxon Mobil stock from Thursday's $112.95 close. Exxon Mobil last week agreed to buy Permian Basin driller Pioneer Natural Resources in an all-stock deal for $60 billion, the largest merger and acquisition of 2023. Chipmaker Advanced Micro Devices touts a 4.4% debt-to-equity ratio and a roughly 4% debt-to-asset ratio.

Persons: Jerome Powell, Salesforce Organizations: Treasury, Federal Reserve, Economic, of New, CNBC, Exxon Mobil, ExxonMobil, Natural Resources, AMD Locations: of New York

☆ Fed Chair Jerome Powell: The resilience of the economy is a story of stronger demand
▼ + stars: | 2023-10-19 | 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 Jerome Powell: The resilience of the economy is a story of stronger demandFed Chair Jerome Powell at the Economic Club of New York responds to questions about the economic impacts of monetary policy, debt terms limiting the effect of rate hikes, and more.

Persons: Jerome Powell Organizations: Economic, of Locations: York

☆ Strong Economic Data ‘Could Warrant’ Higher Rates, Fed Chair Says
▼ + stars: | 2023-10-19 | by ( Jeanna Smialek | More About Jeanna Smialek | ) www.nytimes.com time to read: +4 min

But he also said that the central bank might need to raise interest rates more if economic data continued to come in hot. Mr. Powell tried to paint a balanced picture of the challenge facing the Fed in a speech before the Economic Club of New York. Officials have rapidly raised interest rates to a range of 5.25 to 5.5 percent over the past 19 months. “We are attentive to recent data showing the resilience of economic growth and demand for labor,” Mr. Powell acknowledged in his prepared remarks on Thursday. Those tougher financial conditions could affect growth, Mr. Powell said Thursday.

Persons: Jerome H, Powell, Mr, ”, “ Organizations: Federal Reserve, Economic, of New, Fed Locations: of New York, Israel, Gaza

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said Thursday that inflation remains too high and that bringing it down to the Fed's target level will likely require a slower-growing economy and job market. Powell noted that inflation has cooled significantly from a year ago. But he cautioned that it's not yet clear whether inflation is on a clear path back to the Fed's 2% target. That would allow the Fed to stay on hold and observe how growth and inflation evolve in the coming months. Political Cartoons View All 1211 ImagesBut several recent economic reports have suggested that the economy is growing robustly and that inflation could remain persistently elevated, which could require further Fed action.

Persons: Jerome Powell, Powell, it's, ” Powell, “, ” Organizations: WASHINGTON, —, Economic, of New, Wall Locations: of New York, ”

☆ Climate protesters disrupt start of Federal Reserve Chair Powell’s economic speech
▼ + stars: | 2023-10-19 | 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 EmailClimate protesters disrupt start of Federal Reserve Chair Powell’s economic speechThe start of Federal Reserve Chairman Jerome Powell’s speech on Thursday was delayed by climate activists protesting at the Economic Club of New York. The protesters appeared to be from a group called Climate Defiance. The group’s mission statement calls for the end of fossil fuel extraction on federal lands and waters, among other items.

Persons: Jerome Powell’s Organizations: Federal, Economic, of New Locations: of New York

☆ Climate protesters disrupt start of Federal Reserve Chair Powell's economic speech
▼ + stars: | 2023-10-19 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +1 min

Protesters disrupt an Economic Club of New York event on Oct. 19th, 2023. The start of Federal Reserve Chairman Jerome Powell's speech on Thursday was delayed by climate activists protesting at the Economic Club of New York. The protesters appeared to be from a group called Climate Defiance. The group's mission statement calls for the end of fossil fuel extraction on federal lands and waters, among other items. The Federal Reserve leader appeared to leave his seat near the podium at some point during the protest.

Persons: Jerome Powell's, Powell, Transportation Pete Buttigieg Organizations: of New, Federal, Economic, Federal Reserve, Defiance, Transportation Locations: of New York, New York

☆ Jerome Powell says Fed will let bond market volatility 'play out' amid historic Treasury collapse
▼ + stars: | 2023-10-19 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The Fed will let the bond market volatility "play out," Chairman Jerome Powell said. Though there could be many explanations for higher yields, monetary policy forecasts aren't the main driver. AdvertisementAdvertisementThere could be several factors sending Treasury yields higher, and the Federal Reserve will let the bond market run its course, Chairman Jerome Powell said on Thursday. While it's clear that higher yields are constraining financial conditions, the Fed will be watching for the persistence of this effect, Powell said. AdvertisementAdvertisementEarlier this month, Treasury Secretary Janet Yellen tried to calm the bond market, saying there's no "evidence of market dysfunction."

Persons: Jerome Powell, —, Powell, what's, Janet Yellen Organizations: Economic, of New, Service, Federal Reserve, Financial Times Locations: of New York, Treasurys

☆ Fed Chair Powell to deliver remarks during uncertain moment for the US economy
▼ + stars: | 2023-10-19 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Federal Reserve Chair Jerome Powell is set to deliver remarks during a moderated discussion hosted by the Economic Club of New York at 12 pm ET on Thursday. The yield on the benchmark 10-year US Treasury note reached its highest level since 2007 on Wednesday, while 30-year Treasury yields breached the 5% mark. That’s a welcome development for the Fed, but officials aren’t quite yet ready to declare victory. Inflation is still above the Fed’s 2% target, and officials have said they need to see further evidence of the economy cooling. Employers added a robust 336,000 jobs in September, while the unemployment rate held at a low 3.8% that month.

Persons: Jerome Powell, Philip Jefferson, That’s, ”, Mary Daly Organizations: DC CNN — Federal, Economic, of New, Treasury, ” San Francisco Fed, Traders, Commerce Department Locations: Washington, of New York, June’s, ” San, Israel

☆ US stocks fall as the 10-year US Treasury yield approaches 5% and Powell says inflation 'still too high'
▼ + stars: | 2023-10-19 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

US stocks dropped on Thursday following comments from Federal Reserve Chairman Jerome Powell. Powell said that inflation is still too elevated and reiterated the higher-for-longer outlook for rates. "Does it feel like policy is too tight right now? AdvertisementAdvertisementUS stocks fell on Thursday after comments from Federal Reserve President Jerome Powell indicated that interest rates are likely to stay higher for longer. The comments from Powell sent stocks lower and bond yields higher, with the 10-year US Treasury yield hitting a high of 4.99%, representing its highest level since June 2007.

Persons: Jerome Powell, Powell, — Organizations: Federal, Service, Economic, of New, Treasury, Netflix, Nasdaq Locations: of New York, Fundstrat, Here's

☆ Fed's Powell to take the stage amid a suddenly choppy landscape
▼ + stars: | 2023-10-19 | by ( ) www.reuters.com time to read: +4 min

U.S. Federal Reserve Chairman Jerome Powell holds a press conference after the release of the Fed policy decision to leave interest rates unchanged, at the Federal Reserve in Washington, U.S, September 20, 2023. Powell's appearance comes less than 48 hours before the beginning of the traditional quiet period ahead of the rate-setting Federal Open Market Committee's meeting on Oct. 31-Nov. 1. Many in the poll offered the caveat that if progress on inflation stalls out or reverses, the Fed would not hesitate to resume raising rates. Waller said as much on Wednesday: "If the real economy continues showing underlying strength and inflation appears to stabilize or reaccelerate, more policy tightening is likely needed despite the recent run-up in longer-term rates." Reporting by Dan Burns and Ann Saphir; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

Persons: Jerome Powell, Evelyn Hockstein, Powell, Philip, Jefferson, Krishna Guha, Christopher Waller, Waller, Dan Burns, Ann Saphir, Andrea Ricci Organizations: Federal, Federal Reserve, REUTERS, U.S, Economic, of New, Fed, Thomson Locations: Washington , U.S, New York, of New York, U.S

☆ Watch Fed Chair Jerome Powell deliver a speech on the U.S. economy
▼ + stars: | 2023-10-19 | by ( Fred Imbert | ) www.cnbc.com time to read: 1 min

Please refresh the page if you do not see a player above at that time.] Federal Reserve Chair Jerome Powell delivered a speech on the U.S. economy Thursday at the Economic Club of New York. The speech comes during a difficult time for Wall Street. Stocks have been volatile in recent weeks, with Treasury yields reaching multiyear highs, as traders weigh the potential of Fed rates staying higher for longer. According to the CME Group's FedWatch tool, traders were pricing in a 96% chance that the central bank keeps rates at the current 5.25%-5.5% range heading into Powell's speech.

Persons: Jerome Powell Organizations: Economic, of New, Wall, Treasury, CNBC, YouTube Locations: U.S, of New York

☆ Gold firms on Middle East conflict, spotlight on Powell speech
▼ + stars: | 2023-10-19 | by ( ) www.cnbc.com time to read: +2 min

Gold bars arranged at the Korea Gold Exchange store in Seoul, South Korea, on Friday, Oct. 13, 2023. Gold prices hovered near a 2-1/2-month high on Thursday as escalating Middle East turmoil buoyed demand for the safe-haven asset, while investors awaited U.S. Federal Reserve Chair Jerome Powell's speech due later in the day. Spot gold was steady at $1,947.45 per ounce by 0318 GMT after hitting its highest since Aug. 1 on Tuesday. Market focus will be on Powell's speech to the Economic Club of New York for more cues on the interest rate path after recent dovish comments from several Fed officials. I don't think there's a whole lot to reprice there and doubt the Fed Chair is going to fight that sentiment," Spivak said.

Persons: Jerome Powell's, Ilya Spivak, Joe Biden, Spivak Organizations: Korea Gold Exchange, Federal, Gaza, Economic, of New Locations: Seoul, South Korea, ., Israel, of New York

"We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters." After a short delay, Powell noted the labor market and economic growth may need to slow to ultimately achieve the Fed's goal. "Still, the record suggests that a sustainable return to our 2 percent inflation goal is likely to require a period of below-trend growth and some further softening in labor market conditions," Powell said. "We're very far from the effective lower bound, and the economy is handling it just fine," Powell said. Robust job creation in September and a slow pace of layoffs could put progress on inflation at risk.

Persons: Jerome Powell, Powell Organizations: Economic, of New, Defiance, Fed Locations: of New York

Investors turn to the Fed amid Israel-Hamas turmoilThe Middle East crisis has put markets on edge, pushing up oil prices and driving demand for safe havens, like gold. A key update comes Thursday at noon Eastern, with Jay Powell, the Fed chair, set to speak at the Economic Club of New York. In recent months, inflation has begun to ease, but the path has been bumpy as hiring remains robust and consumers continue to spend. That’s fueled fears in the bond markets that Fed policymakers will keep their prime lending rate at around 5 percent well into next year. The conviction has prompted a mammoth sell-off in Treasuries in recent weeks, pushing the yield on the 10-year T-bill to a 16-year high.

Persons: Jay Powell Organizations: Economic, of New Locations: Israel, of New York, Treasuries

☆ US weekly jobless claims hit nine-month low
▼ + stars: | 2023-10-19 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Though the labor market is gradually cooling, conditions remain tight, with claims at the very low end of their range of 194,000 to 265,000 for this year. The Fed's Beige Book report on Wednesday said "labor market tightness continued to ease across the nation" in early October and implied cooling wage pressure. The labor market is driving consumer spending and the overall economy, ultimately keeping inflation elevated. The claims report covered the week during which the government surveyed business establishments for the nonfarm payrolls component of October's employment report. The so-called continuing claims increased 29,000 to a still-low 1.734 million during the week ending Oct. 7, the claims report showed.

Persons: Andrew Kelly, Christopher Rupkey, Unadjusted, Jerome Powell's, Jay Hawkins, Lucia Mutikani, Chizu Nomiyama, Jonathan Oatis Organizations: REUTERS, Labor Department, Federal Reserve, Financial, Treasury, Reuters, United Auto Workers, UAW, Ford, General Motors, Chrysler, U.S, Economic, of New, National Association of Realtors, realtors, BMO Capital Markets, Philadelphia Fed, Thomson Locations: Manhattan , New York City, U.S, WASHINGTON, New York, Texas , New York , New Jersey, Georgia, California, Tennessee, Michigan, of New York, Toronto, Pennsylvania, New Jersey, Delaware

☆ Fed done hiking rates, but higher for longer message gaining traction
▼ + stars: | 2023-10-18 | by ( Prerana Bhat | ) www.reuters.com time to read: +4 min

Several Fed officials have indicated that may work as a substitute to further rate rises, while still stressing rates will remain higher for longer. Over 80% of economists, 91 of 111, had no rate cut in their forecast until at least the second quarter of next year. That 55% majority slipped from over 70% in a September poll, extending a trend of rate cut calls being pushed to later. As recently as July, a majority of economists polled said the Fed would start cutting by end-March. All but two of 28 respondents to an extra question said the bigger risk was the first rate cut comes later than they expect.

Persons: Brett Ryan, Jerome Powell, it's, Lawrence Werther, Prerana Bhat, Rahul Trivedi, Sarupya Ganguly, Ross Finley, Jonathan Cable Organizations: U.S . Federal Reserve, Reuters, Fed, Deutsche Bank, Economic, of New, Daiwa, Thomson Locations: BENGALURU, of New York

☆ Fed Chair Powell to deliver key speech Thursday. Here's what to expect
▼ + stars: | 2023-10-18 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

U.S. Federal Reserve Chair Jerome Powell holds a press conference after the release of the Fed policy decision to leave interest rates unchanged, at the Federal Reserve in Washington, D.C., on Sept. 20, 2023. The top monetary policymaker will speak at noon ET to the Economic Club of New York at a critical time for the U.S. economy. Inflation numbers have been improving lately, but Treasury yields have been surging, sending conflicting messages about where monetary policy might be headed. Markets largely expect the Fed to stay on hold with rates, but they will be looking to Powell for confirmation and clarification on how officials view both current conditions and longer-term trends. "Really, their ultimate goal is to keep financial conditions tight so inflation comes down," he said.

Persons: Jerome Powell, Powell, Luke Tilley, Tilley Organizations: Federal, Federal Reserve, Washington , D.C, Economic, of New, Wilmington Trust Locations: Washington ,, of New York, U.S, Wilmington

☆ Markets are misreading Fed officials' comments, and the central bank could still raise rates, analyst warns
▼ + stars: | 2023-10-17 | by ( Aruni Soni | ) www.businessinsider.com time to read: +2 min

The markets have been misinterpreting recent Fedspeak, a Barclays analyst said. Markets "have read far too much into recent Fedspeak that implied that these higher rates might have done some of the heavy lifting." If a strong US economy is driving interest rates higher, the Fed may have to hike rates again. But I think we've read far too much into recent Fedspeak that implied that these higher rates might have done some of the heavy lifting," she said. The so-called Fedspeak infused markets with optimism that the central bank will be pausing rate hikes.

Persons: —, Meghan Graper, isn't, Powell, Jerome Powell, Graper Organizations: Barclays, Service, Bloomberg, Economic, of New Locations: of New York

☆ Dollar buoyed by safe-haven bids, rate jitters
▼ + stars: | 2023-10-16 | by ( ) www.cnbc.com time to read: +4 min

The yen was last steady at 149.53 per dollar. "Obviously war is inflationary, disrupts growth and threatens risk assets," James Malcolm, head of FX strategy at UBS in London. Elsewhere, the safe-haven dollar stood near a one-week high against a basket of currencies as risk sentiment remained fragile, pinning the euro near a one-week low hit on Friday. The Australian dollar , often used as a proxy for risk appetite, gained 0.19% to $0.6309, after sliding 1.4% last week. "The kiwi dollar jumped this morning following a clear and decisive victory of New Zealand's opposition National Party," said Kyle Rodda, senior financial market analyst at Capital.com.

Persons: Jerome Powell, Benjamin Netanyahu, James Malcolm, David Chao, Christopher Luxon, Chris Hipkins, Kyle Rodda Organizations: Federal, U.S, country's, Bank of Japan, UBS, Sterling, Asia Pacific, Australian, Economic, of New, New Zealand, National Party, ACT, Labor Party, New Zealand First Locations: Chicago, Israeli, Asia, Gaza, London, Friday's, Israel, Japan, of New York

Describing that anticipated outcome while keeping open the possibility of future rate increases will be one challenge Powell faces. Another will be discounting speculation about the prospect of rate cuts or changes to other aspects of Fed policy, such as the ongoing reduction of the central bank's balance sheet. The yield on the 10-year Treasury note is just about six-tenths of a percentage point below the Fed's policy rate; when the gap between the two shifts from negative to positive is when monetary policy gets perhaps its truest test. Recent data on balance don't fully back the Fed's view of a gently slowing economy and steadily easing inflation. "Assuming the economy keeps growing ... the Fed will get back to hiking," Blitz said.

Persons: Jerome Powell, Powell, Larry Meyer, Meyer, Krishna Guha, Powell's, Christopher Waller, Waller, Steven Blitz, Howard Schneider, Dan Burns, Paul Simao Organizations: Federal Reserve, Fed, U.S ., Economic, of New, Reuters Graphics Reuters, Evercore ISI, Hamas, U.S . House, Graphics, TS Lombard, Thomson Locations: U.S . Congress, of New York, Israel, Palestinian, Washington, U.S

With two wars, a rising price of oil and a shaky bond market, there is plenty of worry for the markets and economists this week, including a slew of corporate earnings reports and data on the state of the housing market and retail spending. Meanwhile, Russia has been pressing its invasion of Ukraine that is now a year and a half old. Last week ended with a surprise increase in consumer’s expectations of inflation in the University of Michigan’s sentiment survey. Where new home construction a few months ago was holding up the housing market, now it has slumped amid mortgage rates that have brushed 8%. The firm published its monthly economic outlook last week and did not include any more Fed rate hikes in the current cycle.

Persons: “, Jerome Powell, Powell, ” Sam Bullard Organizations: Hamas, University of, “, BCA Research, ”, National Association of Home Builders, Federal Reserve Bank of Atlanta, National Association of Realtors, Economic, of New, Wells Locations: East, Ukraine, Gaza, Israel, Palestinian, U.S, Iran, Lebanon, Russia, of New York

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