DIRS.INFO The most relevant business & tech news

☆ Explainer: What's the latest on Biden's U.S. student loan forgiveness?
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +4 min

On Nov. 22, Biden said he would extend the COVID-19 pandemic-era pause in student loan payments until no later than June 30, 2023. WHO IS ELIGIBLE FOR LOAN FORGIVENESS? About 26 million Americans have applied for student loan forgiveness since August, and the U.S. Department of Education has already approved requests from 16 million. U.S. borrowers hold about $1.77 trillion in student debt, according to the latest Federal Reserve figures. Biden's student loan forgiveness plan could add $300 billion to $600 billion to the federal debt, economists estimate.

☆ Americans' financial fragility largely unchanged in 2022, NY Fed says
▼ + stars: | 2022-11-21 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

The regional Fed bank said in its latest Credit Access Survey, which was released on Monday and details developments for this year, that respondents reported "a slight increase in the subjective financial fragility of U.S. There was also little change among those who said they might need $2,000 unexpectedly, according to the New York Fed report, which concluded that both measures have been little changed since 2015, even as the coronavirus pandemic roiled the economy. The New York Fed report also found that overall there has been "a decline in consumer credit demand in 2022, with most credit application rates stable or weakening, except for a rise in credit card applications." The report was released as the U.S. central bank presses ahead with aggressive interest rate increases that are aimed at lowering high levels of inflation. Fed policy is also expected to drive up unemployment, although the job market has remained resilient so far.

☆ Premarket stocks: Get ready for a spending slowdown this holiday season
▼ + stars: | 2022-11-17 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Retail sales surged by 1.3% in October. What’s happening: Wednesday’s headline retail sales numbers, reported by the US Census Bureau, came in strong, but the momentum is unlikely to continue. These cracks in retail are starting to show just as the sector enters its most critical sales period: The holiday shopping season. The bottom line: This holiday season will likely be a mixed bag with some winners and losers in the retail sector, said Saunders. “We do have to do some tax rises, do some spending cuts, if we’re going to show we’re a country that pays our way,” he told Sky News on Sunday.

☆ Treasury market liquidity crunch could derail the Federal Reserve's policy, New York Fed chief says
▼ + stars: | 2022-11-16 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

Dysfunctioning US bond markets run the risk of undermining central bank monetary policy, according to John Williams. "If the Treasury market isn't functioning well, it can impede the transmission of monetary policy to the economy," he said. "Monetary policy influences the economy by affecting financial conditions, with the Treasury market at the center of it all. If the Treasury market isn't functioning well, it can impede the transmission of monetary policy to the economy." Williams' comments come as a liquidity crunch takes hold of the $24 trillion Treasury market and threatens to grind the world's most vital bond market to a halt.

That came on the heels of last week's report that October consumer prices rose less than anticipated, and Fed officials have signaled they are likely done with the three-quarter-point rate increases approved at the central bank's last four meetings. "Tech companies may have over-extrapolated the rapid growth they experienced during the pandemic and are now correcting for over-hiring," the Goldman economists wrote. Job growth through October remained strong but was moderating from its pre-pandemic highs, and Fed officials said they saw some initial signs that wage growth was beginning to cool. Curbing demand is one aim of Fed rate increases that have come at the fastest pace in 40 years on the expectation that less consumption will translate into less inflation. "You'd actually expect more competitive pressure to start bringing those costs down," Fed Vice Chair Lael Brainard said Monday at a Bloomberg event.

☆ Fed's Williams says monetary policy not best tool for financial stability
▼ + stars: | 2022-11-16 | by ( Michael S. Derby | ) www.reuters.com time to read: +1 min

"For monetary policy to be most effective, financial markets must function properly," Williams said in prepared remarks for a speech to a Treasury market conference at the New York Fed. "Using monetary policy to mitigate financial stability vulnerabilities can lead to unfavorable outcomes for the economy," Williams said, adding that "monetary policy should not try to be a jack of all trades and a master of none." Williams did not comment on the near-term monetary policy outlook in his prepared remarks. "Restoring price stability is of paramount importance because it is the foundation of sustained economic and financial stability. Price stability is not an either/or, it's a must-have," he said.

☆ Costlier credit: Some retailers' cards now carry APRs of more than 30%
▼ + stars: | 2022-11-15 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN Business —There has long been a threshold that few issuers of store-branded credit cards have been willing to surpass: the 30% annual percentage rate. At least a half-dozen major retail credit cards — including those for Kroger, Bloomingdale’s, Macy’s, Shell, Exxon Mobil and Wayfair — recently bumped up their maximum APRs to more than 30%, according to Matt Schulz, chief credit analyst for LendingTree. And that credit is getting costlier as high inflation is forcing American consumers to rack up more debt. The increases come amid robust consumer demand and higher prices for everything from mortgages to food to fuel. “Credit cards are like power tools,” Rossman said.

☆ Morning Bid: Consumer inflation, crypto deflation
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +5 min

Annual consumer price rises are expected to have eased back a touch last month to 8.0%, the lowest since February, with core inflation rates ticking lower to 6.5%. Falling used car prices, one aggravator of inflation indices over the past year, will be watched closely - as will the relative calm in oil prices. Minneapolis Fed President Neel Kashkari said it's "entirely premature" to discuss any pivot away from the Fed's current policy course. Broader markets were steady to negative around the world, mostly in a holding pattern ahead of the inflation report. The United States and China also laid out markers this week ahead of an expected meeting between their presidents at the summit.

☆ Premarket stocks: What midterm elections could mean for the US economy
▼ + stars: | 2022-11-08 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —Tuesday’s midterm elections come at a time of economic vulnerability for the United States. Americans are feeling the pain of rising interest rates and are facing a winter filled with geopolitical tension. If Republicans get the House, tax hikes are dead in the water,” said David Wagner, a portfolio manager with Aptus Capital Advisors. Biden’s stock market record is the second worst since Jimmy CarterThe stock market under President Biden started with a boom, but as we head into midterm elections, markets are going bust, reports my colleague Matt Egan. By contrast, Biden’s two immediate predecessors headed into their first midterm election with stock markets surging.

☆ US consumers borrowed $25 billion more in September
▼ + stars: | 2022-11-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

Minneapolis CNN Business —American consumers borrowed another $25 billion in September, according to newly released Federal Reserve data, as higher costs led to further dependence on credit cards and other loans. “Generally speaking with cards, it’s getting harder to get a credit card,” Schulz said in an interview with CNN Business. According to the October 2022 senior loan officer opinion survey, standards tightened for approval of credit card loans while demand increased. That’s likely showing up in this consumer credit data, he said. “Any time you have credit card debt growth, it can either be a sign of confidence or a sign of struggle — it’s usually both,” he said.

☆ Stocks are down big this year. Here's how you can use losses to your advantage — and other strategies to keep in mind — to pay as little tax as possible next year.
▼ + stars: | 2022-11-03 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

One of the most common strategies is tax loss harvesting, said Tanya Taylor, the founder and CEO of Grow Your Wealth and former financial regulator with the New York Federal Reserve. "You're capitalizing on some of the gains but you won't need to pay taxes on it because you can offset it against the loss," Taylor said. Investors should also consider gains made outside of the stock market when thinking about tax loss harvesting, said Ryan McKeown, a financial advisor at Wealth Enhancement Group. Below are the 2022 income tax brackets. Tax FoundationAnother strategy investors can use to minimize their 2022 tax bill is to donate stock to charity, both McKeown and Freifeld said.

But that higher inflation has already been baked into many tax and wage figures that will change in 2023. Income tax bracketsThe IRS tax brackets corresponding to your marginal tax rates are also shifting upward — by 7% — thanks to inflation. But many banks, especially those that are online-only, are also paying out more money through higher interest rates for high-yield savings and certificate of deposit accounts. California is the largest state that will see a cost of living adjustment next year, with the minimum wage rising to $15.50 for all establishments. California's increase is limited by a statute that declares the minimum wage cannot increase by more than 3.5% each year.

☆ Fed's Williams says still difficult to find workers in U.S. economy
▼ + stars: | 2022-10-21 | by ( Michael S. Derby | ) www.reuters.com time to read: 1 min

HUDSON, N.Y., Oct 21 (Reuters) - Finding workers remains a challenge in the U.S. economy, New York Federal Reserve President John Williams said on Friday. "In the current environment, filling jobs can be a challenge," Williams said in prepared remarks for a speech in Hudson, New York. "Many are struggling to hire people, especially at the entry level in construction, nursing, and manufacturing," he said, adding that "the skills gap is a big obstacle." Williams, who serves as the vice chair of the rate-setting Federal Open Market Committee, did not comment on the monetary policy outlook in his prepared remarks. Register now for FREE unlimited access to Reuters.com RegisterReporting by Michael S. Derby; Editing by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Tbond tension snaps sentiment
▼ + stars: | 2022-10-21 | by ( ) www.reuters.com time to read: +5 min

China's onshore yuan fell to another 14-year low despite major state-owned banks selling dollars on Friday. read more read moreThe economic backdrop darkened. read moreAfter Tesla's disappointment earlier in the week, the U.S. earnings season took another negative twist from the digital sector overnight. read moreIn banking, shares Credit Suisse slid again ahead of next week's big announcement on its restructuring plans. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Insana: Signs emerge that the big drivers behind this hot inflation reading are starting to cool
▼ + stars: | 2022-10-14 | by ( Ron Insana | ) www.cnbc.com time to read: +2 min

People shop in a supermarket as inflation affected consumer prices in New York City, June 10, 2022. Whether the financial markets have correctly priced in "peak inflation" and a potential Federal Reserve pivot is a topic for another day. But there is ample evidence that the inputs that drove inflation higher, especially in the goods sector, are heading back to Earth. A disinflation checklist may be in order here, despite what appears to be more sticky inflation in services and wages. Let's start with what some, myself included, believe to be the root cause of this most recent inflation spike, the pandemic-induced disruption of global supply chains.

☆ Supply chain snarls loosen for U.S. companies, but plenty of problems remain
▼ + stars: | 2022-10-13 | by ( Timothy Aeppel | ) www.reuters.com time to read: +5 min

Some parts of his supply chain have clearly improved, said the vice president of global supply for Graco Inc (GGG.N), the Minneapolis-based maker of fluid handling equipment such as paint sprayers. But the complex nature of global supply chains means that companies like Graco are still struggling, since the shortage of just one part can hobble them. The COVID-19 pandemic set off a crisis in global supply chains, which is showing signs of healing. This suggests falling prices for some goods and services are still far from working their way fully through the economy. The regional bank’s Global Supply Pressure Index tracks data on shipping costs, delivery times, backlogs and other statistics into a single measure compared to historic norms.

☆ Gig worker rule comes at bad time for gig economy
▼ + stars: | 2022-10-11 | by ( Jennifer Saba | ) www.reuters.com time to read: +4 min

President Joe Biden’s administration is seeking to turn some independent contractors into employees. Shares of Uber, Lyft and DoorDash were down approximately 7% by noon in New York. Analysts expect Uber, DoorDash and Lyft to earn EBITDA margins of just 5% to 7% of revenue this year, according to Refinitiv. A gig worker rule comes at the worst possible time for America’s gig economy. The rule would require companies that rely on so-called gig workers to designate them as employees, making them eligible for more benefits and legal protections.

☆ History of Japan's intervention in currency markets
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +4 min

Here is a timeline of selected moves in foreign exchange markets by the Bank of Japan (BOJ). Sept. 15, 2010 - Japan intervenes in the currency market for the first time in six years, selling yen to stem a rise in the currency after the dollar hits a 15-year-low at 82.87 yen. May-June, 2002 - The BOJ intervenes to sell yen, often supported by the U.S. Federal Reserve and European Central Bank (ECB). Sept 2001 - The BOJ intervenes to sell yen after the Sept. 11 attacks in the United States. The BOJ intervenes to buy dollars and sell yen.

☆ How much ‘pain’ is the Fed willing to inflict? Wednesday’s rate hike will offer clues
▼ + stars: | 2022-09-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

Federal Reserve Chairman Jerome Powell has acknowledged the economic pain this rapid tightening regime may cause. A larger hike is possible, but unlikelySome economists even expect the Fed to implement a massive — and historic — full-point rate hike on Wednesday. It meant that people understood the seriousness of the Fed’s commitment to getting inflation rates back down to 2%, he said. They want higher bond yields,” former New York Federal Reserve President Bill Dudley told CNN back in May. The Federal Reserve announces its rate hike decision Wednesday at 2 p.m.

☆ I am not worried about the stability of the U.S. banking system, says former New York Fed President
▼ + stars: | 2022-09-21 | 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 EmailI am not worried about the stability of the U.S. banking system, says former New York Fed PresidentWilliam Dudley, former president of the New York Federal Reserve, joins 'Squawk on the Street' to discuss the Fed trajectory for bringing down inflation, the consequences of Fed tightening on unemployment, and the stability of the U.S. banking system.

☆ Premarket trading: It's getting late in the game. Will the Fed risk a Hail Mary?
▼ + stars: | 2022-09-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Markets plummeted as the report stoked fears that the central bank and Chair Jerome Powell would decide to hike rates more aggressively, inflicting serious economic pain. Investors are putting the odds of a three-quarter percentage point hike next week at 75%, according to CME FedWatch data. The odds for a full point hike are hovering around 25% in the wake of the inflation report, up from 0% one week ago. It meant that people understood the seriousness of the Fed’s commitment to getting inflation rates back down to 2%, he said. “I wouldn’t discount a 100 basis point rate hike,” Marvin Loh, senior strategist at State Street, told me.

On paper, the average hourly wage Americans have earned has steadily climbed over the past year, from $30.76 to $32.36. According to the U.S. Bureau of Labor Statistics, Americans have effectively experienced a 12-month pay cut of $0.31 per hour. Combined with a decrease in hours worked, Americans' inflation adjusted average weekly pay has decreased by only $13.20 from one year ago. The BLS released data Tuesday showing that monthly inflation had picked up 0.1%, while annualized inflation had climbed 8.3%. "Clearly the high inflation is undermining Americans’ purchasing power," Mark Zandi, chief economist at Moody's, told NBC News.

Inflation was little changed in the month of August, despite efforts by the Federal Reserve to cool off the U.S. economy. Data released Tuesday by the U.S. Bureau of Labor Statistics showed that inflation landed at 8.3% last month compared to one year ago. Excluding volatile food and gas prices, inflation climbed 6.3% year-on-year — higher than the consensus estimate for 6.1% and an increase from last month's 5.9% reading. But food prices have remained stubbornly elevated, climbing 11.4% overall, compared to the same time last year. Inflation is expected to remain elevated for some time, though it should continue heading downward, according to the most recent New York Federal Reserve survey.

☆ Autos rebound fuels U.S. manufacturing output gain in March
▼ + stars: | 2022-04-15 | by ( ) www.reuters.com time to read: +4 min

Overall industrial production increased 0.9% last month, keeping pace with February's upwardly revised pace, the Federal Reserve said on Friday. Manufacturing, which accounts for 11.9% of the American economy, has benefited from a shift in spending to goods from services during the COVID-19 pandemic. Even as consumer spending shifts back toward services in the months ahead as COVID caseloads ease, "vehicle sales have brighter prospects this year than other categories of durable consumer goods." Capacity use for the manufacturing sector increased to 78.7% in March, the highest level since 2007, from 78.1% in February. Its Empire State Manufacturing Index rose to a four-month high of 24.6 after a reading of negative 11.8 in March.

Search resuls for: "New York Federal Reserve"

24 mentions found