Interest rates hike fed

Share to Twitter Share to Linkedin Topline Stocks fell slightly on Wednesday as a growing number of major Wall Street firms warned that the likelihood of a recession has risen sharply, while Federal Reserve Chair Jerome Powell pledged that the central bank is “ strongly committed ” to raising rates until inflation moderates. Key Facts Markets finished lower in choppy trading: The Dow Jones Industrial Average fell 0.2%, less than 100 points, while the S&P 500 lost 0.1% and the tech-heavy Nasdaq Composite 0.2%. The Dow was down by as much as 400 points but stocks pared back losses following comments from Fed Chair Powell, who said the central bank is “determined to take the measures necessary to restore price stability” and that “ongoing rate increases will be appropriate.” Citigroup became the latest Wall Street bank to increase its recession odds, meanwhile, forecasting a 50% chance of a downturn as consumer demand “looks to be … [Read more...] about Stocks Fall After Powell Pledges More Big Rate Hikes To Combat Inflation

Share to Twitter Share to Linkedin Topline Federal Reserve Chairman Jerome Powell pledged in testimony before Congress on Wednesday that the central bank is “moving expeditiously” to raise interest rates and remains “strongly committed” to doing so until there is “compelling evidence” that inflation is normalizing. Key Facts In his semiannual testimony on monetary policy to Congress, Powell faced questions from lawmakers about how the central bank will proceed as it looks to combat surging inflation, which remains at 41-year highs. The Fed raised rates by 75 basis points last week—its largest increase since 1994, with Powell also signaling that a similarly large rate hike is likely at the next policy meeting in July. Speaking to Congress on Wednesday, Powell pledged that the Fed wouldn’t hesitate to keep raising rates at a fast clip—and further than projected—if higher inflation continues to persist. “It is essential that we bring … [Read more...] about Powell Says Fed Will Continue Hiking Rates Until There Is ‘Compelling Evidence’ That Inflation Is Slowing

- A + A (June 22): Federal Reserve Chair Jerome Powell said the Central Bank will keep raising interest rates to tame inflation and conceded that a US recession was “certainly a possibility”. “We anticipate that ongoing rate increases will be appropriate,” Powell said Wednesday in his semiannual testimony to the Senate Banking Committee. “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We therefore will need to be nimble in responding to incoming data and the evolving outlook.” Powell’s remarks largely reiterated comments at a press conference last week after he and his colleagues on the Federal Open Market Committee raised their benchmark lending rate 75 basis points — the biggest increase since 1994 — to a range of 1.5% to 1.75%. While Powell told reporters last week that another 75 basis-point increase, or a 50 basis-point move, was on the table for the next meeting in late July, Wednesday’s text made … [Read more...] about Powell sees ongoing rate hikes, says recession a ‘possibility’

- A + A BENGALURU (June 24): Gold prices were flat on Friday (June 24) but on course for their second straight weekly decline, with worries over major central banks potentially implementing big interest rate hikes to target runaway inflation weighing on bullion demand. Spot gold was last up 0.1% to US$1,824.72 (about RM8,036.98) per ounce at 0215 GMT after hitting a one-week low of US$1,820.99 earlier in the session. US gold futures fell 0.2% to US$1,825.90. Gold prices have dropped about 0.9% this week. The US Federal Reserve's commitment to reining in 40-year-high inflation is "unconditional", its chair Jerome Powell told lawmakers on Thursday, even as he acknowledged that sharply higher interest rates may push up unemployment. "The US dollar remains firm and expectations now lean towards a 75-basis-point Fed hike in July. The TIPS spread — a market based proxy for inflation expectations — is also near a four-month low, and these have kept a lid on any gold … [Read more...] about Gold set for second straight weekly drop on worries over big rate hikes

- A + A NEW YORK/BENGALURU (June 24): Wall Street's main indexes climbed more than 2% on Friday, as signs of slowing economic growth and a recent weakening of commodity prices tempered expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Global financial markets have been roiled this month on worries that rapid rate hikes by major central banks could cause a recession, with the benchmark S&P 500 confirming a bear market last week as it recorded a 20% drop from its January closing peak. The three main indexes looked set to notch their first weekly gain of the month, boosted by megacap growth stocks and defensive sectors such as healthcare and utilities seen as safer bets during times of economic uncertainty. "The reality is there's some optimism that the weakening economy, the stronger potential for a recession down the road could actually impede the Fed's aggressive hiking schedule," said Ryan Detrick, chief market … [Read more...] about Wall St rallies as traders dial back rate-hike bets

The 25-basis-point (bp) increase in the key interest rate of the Bangko Sentral ng Pilipinas (BSP) announced on Thursday that affirmed a gradual path to tightening of monetary policy was a disappointment to analysts who believe the BSP should be more aggressive. But Pantheon Macroeconomics said the next hike might not come until next year. Miguel Chanco, the United Kingdom-based research firm’s chief economist for emerging markets in Asia, said in a commentary that this week’s rate hike—a repeat of the Monetary Board (MB) decision in their meeting last May—was “a no-brainer.” Chanco said this was so, especially considering that BSP Governor and MB chair Benjamin Diokno had explicitly said that this month’s decision was likely a 25-bp increase in the interest rate on the central bank’s overnight borrowings from banks. “Not surprisingly, inflation remains front-and-center in the board’s mind, as it raised its inflation forecasts further to 5 percent and 4.2 percent for this year … [Read more...] about Contrarians see BSP pushing back next rate hike to 2023

Wall Street's main indexes rose over 1% on Friday as signs of slowing economic growth and falling commodity prices tempered expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Global financial markets have been roiled this month on worries that rapid rate hikes by major central banks could cause a recession, with the benchmark S&P 500 (.SPX) confirming a bear market last week as it recorded a 20% drop from its January closing peak. The three main indexes on Friday looked set to notch their first weekly gain in four, boosted by megacap growth stocks and defensive sectors such as healthcare and utilities seen as safer bets during times of economic uncertainty. "Conversations about the U.S. economy likely slowing which could lessen the hawkishness of the Fed, combined with lower commodity prices and bond yields - these are reasons investors are mentioning to justify why we could experience a near-term bounce," said Sam Stovall, … [Read more...] about Wall Street rallies as traders dial back rate-hike bets

Share to Twitter Share to Linkedin Interest Rates On The Rise With interest rates on the move, due to the Fed’s latest rate hike , there are winners and losers galore. One of the areas we haven’t paid much attention to for years is our savings accounts. For most of us, we have been beaten into submission, simply accepting the laughable interest we’ve been getting. If you’ve been with a traditional bank the savings interest rate has been, well, insulting. Some banks have been paying as low as 0.1% on some of their savings accounts. How Your Savings Account May Change What has changed is with the Fed’s announcement of a .25% rate increase, banks will have to adjust to keep up. Of course, lending rates will increase as well, but the big winner here is your cash savings rates. When the Fed increases their rates, banks in lockstep will increase what they are paying to park money at their bank, generally speaking. Essentially, it is exactly the outcome the … [Read more...] about What Rising Interest Rates Mean For Your Savings Accounts

A woman in Mumbai mistakenly gave away her bag of gold jewellery to a beggar (Representative Image) Gold prices edged up on Tuesday as the dollar eased, while investors kept a keen eye on posturing from major central banks on interest rate hikes for a clearer outlook for bullion. A weaker dollar makes greenback-priced bullion more attractive for buyers holding other currencies. [USD/] Spot gold was up 0.2% at $1,841.13 per ounce by 0200 GMT, after largely range-bound trading on Monday. U.S. gold futures firmed 0.1% to $1,842.90. However, benchmark U.S. 10-year Treasury yields rose, capping gains in zero-yielding gold. [US/] "The (gold) market is sitting tight as, after a historic week for global central banks; policymakers will get to explain the reasoning behind their decisions this week," said Stephen Innes, managing partner at SPI Asset Management. Close The U.S. Federal Reserve last week approved its largest interest rate increase in more than a quarter … [Read more...] about Gold inches higher as dollar dips; wider rate-hike narrative in focus

An electronic display board at Hana Bank in central Seoul shows the won touching 1,300 won per dollar on Thursday. [YONHAP] The won declined to a 13-year low on Thursday after the U.S. Federal Reserve chairman acknowledged the chance of a recession. It touched 1,302.80 won to the dollar, the lowest in 12 years and 11 months, and is down almost 18 percent from December 2020. The decline comes as stocks globally are in the midst of a rout and as cryptocurrencies melt down. Korea's Kospi is down more than 20 percent this year and the Kosdaq index 30 percent. Bitcoin has lost two-thirds of its value from the peak, and the Luna coin has lost almost 100 percent of its value. In remarks to the Senate Banking Committee on Wednesday, Federal Reserve Chairman Jerome Powell acknowledged that recession is a possibility. The Fed raised the federal funds rate by 75 basis points last week, the biggest rate increase in 28 years. It indicated another increase of 50 or 75 basis points next … [Read more...] about Won hits 1,302.8, a 13-year low, as Powell mentions recession