Rate hike canada

New York (CNN Business) San Francisco Federal Reserve president Mary Daly said Thursday morning that raising interest rates by either half or three quarters of a percentage point in September would be a "reasonable" way to bring inflation down. The hikes would follow back-to-back 75-basis point increases by the Federal Reserve, intended to tackle white hot inflation, which remains near a 40-year high. Last month's Consumer Price Index , a key inflation measure, showed that rising prices took a bit of a breather with consumer prices increasing by 8.5% year over year, a slower pace than the 9.1% increase in June. "There's some relief, and I was really pleased to see that, but I don't count on it," Daly told CNN's Julia Chatterley. "We have a lot of work to do at the Fed to bring us back to price stability." Daly doesn't see the Fed easing interest rate hikes anytime soon. She predicts they'll continue into at least 2023, but says that's ultimately a good … [Read more...] about Expect interest rate hikes to continue into 2023, Fed official says

Share to Twitter Share to Linkedin Topline The stock market fell on Wednesday, with the recent rally on Wall Street taking a breather as investors assessed the latest batch of retail earnings—particularly a sharp drop in profits from Target—and minutes from the Federal Reserve’s July policy meeting. Key Facts Stocks reversed some of their gains from earlier this week: The Dow Jones Industrial Average was down 0.5%, nearly 200 points, while the S&P 500 lost 0.7% and the tech-heavy Nasdaq Composite 1.3%. Markets opened lower after a batch of disappointing retail earnings, with Lowe’s reporting a drop in sales while big-box retailer Target said profits plunged 90% compared to a year ago amid steep discounts to offload excess inventory. “We’ve seen mixed results out of retailers and the big questions are whether the consumer will keep spending and how will they re-allocate their purchases as inflation continues to impact spending … [Read more...] about Dow Falls Nearly 200 Points After Fed Minutes Signal More Rate Hikes Ahead

- A + A TOKYO (Aug 19): The US dollar climbed to a fresh one-month high against major peers on Friday as Federal Reserve officials continued to talk up the need for further interest rate hikes ahead of their key Jackson Hole symposium. The dollar index rose 0.14% to 107.63, after earlier touching 107.72, its highest since July 18. The gauge is on track for a 1.86% rally this week, which would be its best weekly performance since June 12. The greenback rose to 136.38 yen, its highest since July 28 and on track for a 1.99% weekly rise, its best showing since June 10. Meanwhile, the euro dipped to US$1.0070, the weakest since July 15. Sterling sank to US$1.1895, its lowest since July 21. St Louis Fed president James Bullard said he is leaning towards supporting a third straight 75-basis-point interest rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be "reasonable". Kansas City Fed … [Read more...] about Dollar hits one-month high as Fed officials talk up rate hikes

The benchmark Philippine Stock Exchange Index (PSEi) closed nearly flat while subsectors were mixed as the Bangko Sentral ng Pilipinas (BSP) raised rates further to temper soaring inflation. The PSEi rose 0.08 percent, or 5.64 points, to 6,824.63 while the broader All Shares index shed 0.003 percent, or 0.11 points, to 3,619.77. The key policy rate was raised by 50 basis points more to 3.75 percent, effective Aug. 19, following the latest policy meeting on Thursday (See related story on page B1). This follows an unscheduled 75-basis point increase last month. “[T]he street widely expects a 50-basis point rate hike in the [Monetary Board’s] policy review meeting,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said before the policy meeting was concluded. PSE subsectors were mixed with industrial, financials and services moving higher while mining and oil, property and holding firms slipped. A total of 909.5 million shares valued at … [Read more...] about PSEi barely moves after anticipated BSP rate hike

- A + A (Aug 19): The South Korean won and Thailand's baht were the top losers on Friday, as Asian emerging currencies were pressured by the Federal Reserve's resolve to further raise rates to contain inflation that buoyed the dollar. China's yuan, one of the most traded currencies in the region, fell as much as 0.4% to a more than three-month low, while the Thai baht weakened 0.5% to hover near a 10-day low. The US dollar index, which measures the greenback against a basket of major peers, was up at 107.63 in early Asia trading hours, and was on track to end the week about 2% stronger, lifted by the Fed's continued tightening stance. The South Korean won slumped to an over 13-year low, falling 0.6% and marking its fourth straight session of losses, while the Indonesian rupiah slipped 0.3% to its lowest level in nine days. Bank Indonesia (BI), one of the few laggards in the region yet to begin its monetary policy tightening, is expected to stand pat on its … [Read more...] about Asian currencies pressured by rising US rate path

Expectations for the Federal Reserve’s next interest rate hike at its upcoming meeting in September have shifted following yesterday's release of minutes from the Fed's July meeting. Ahead of the release, traders had been evenly divided between an increase of 50 basis points (bps) and an increase of 75 bps, according to CME Group, based on fed funds futures data. However, after the release of the minutes, a majority of traders were betting on a 50-bp increase at the meeting. In the minutes, Fed officials signaled that while they would continue to hike interest rates to bring down inflation , it “would likely be appropriate at some point to slow the pace of policy rate increases.” Some officials indicated that once the policy rate had reached a sufficiently restrictive level, it would be appropriate to maintain that level for some time to ensure that inflation was firmly on a path back to the Fed's target rate of 2%. Policymakers also acknowledged the risk of overdoing … [Read more...] about Rate Expectations Shift Following Fed Meeting Minutes

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,508.05 points on Thursday, down 8.42 points, or 0.33 percent, from the previous trading day. [YONHAP] Shares closed lower Thursday as investors digested Federal Reserve minutes that hinted at more aggressive interest rate hikes to temper inflation. The won fell against the dollar. The Kospi fell 8.42 points, or 0.33 percent, to close at 2,508.05 points. Trading volume was moderate at about 370.84 million shares worth 6.98 trillion won ($5.3 billion), with losers outnumbering gainers 542 to 301. Institutions sold a net 446 billion won worth of stocks, offsetting foreigner and individual combined purchases valued at 440 billion won. In the minutes released Wednesday, Fed policymakers projected the economy to expand in the second half of 2022 and made it clear that they intend to continue raising rates enough to cool the economy and combat inflation. The Fed raised its benchmark interest rate … [Read more...] about Stocks retreat as Fed minutes suggest more rate rises

Share to Twitter Share to Linkedin Topline With the S&P 500 surging 17% since a low point in mid-June, big names like Ford, Tesla and Netflix have been among the top gainers, while several energy and consumer stocks have slumped despite the broad stock market rebound in recent months. Key Facts The benchmark S&P 500 index has erased most of its losses from a brutal selloff in the first half of the year, jumping 17% since the market’s low point on June 16 and recently posting four straight weeks of gains. Stocks have rebounded in recent weeks thanks to growing optimism that inflation may have peaked after consumer prices cooled in July, adding to hopes that the Federal Reserve will scale back its aggressive rate-hiking campaign and tightening of monetary policy. The top-performing stocks in the S&P 500’s rally since June 16 are solar power components provider Enphase Energy and e-commerce company Etsy, rising 75% and 65% during … [Read more...] about Ford, Tesla And Netflix Are Among The Best-Performing Stocks During This Summer’s Massive Rally

Share to Twitter Share to Linkedin Topline Consumer price inflation in the U.K. soared past 10% in July—the highest it has been in 40 years—the U.K.’s statistics office reported on Wednesday, a figure the nation’s central bank expects will rise further later this year and deepen economic pain for households. Key Facts According to the Office of National Statistics (ONS), the U.K.’s consumer prices index (CPI) rose 10.1% in the year to July 2022, up from 9.4% in June, which is the highest it has been since the current statistical model went into effect in 1997. Estimates by the ONS suggest the last time the country’s CPI rate was higher was back in 1982. Rising costs of energy and fuel remain the largest contributor to the rise in the annual inflation rate according to the report as Europe continues to reel from Russia’s reduction in energy supply to the continent. The ONS also noted that rising food prices were the biggest factor … [Read more...] about U.K. Inflation Hits 40-Year High Of 10% As It Bucks G7 Trend—And It’s Expected To Get Worse

Make that four weeks in a row of gains for the U.S. stock market, as the rally has become undeniable. The S&P 500 and the Nasdaq both climbed more than 3% last week, with the the Dow up 2.9%. The S&P 500 has now climbed 15% from its lows in mid-June, while the Nasdaq has clawed back 20% since then. That could technically be described as a new bull market for the index. A 20% retracement from a recent low fits the bill—or the bull—but there are a lot of opinions about that. But we can't deny the strength of the rally, especially when we dig into the charts. The average stock in the Nasdaq Composite index is up 34% from its lows. Remember, just a few months ago, we were talking about the average Nasdaq stock being down 50% from its highs. The pendulum has swung back in a big way. Across the market, the breadth thrust has been pretty impressive. And no, that's not a swimming stroke. The breath trust indicator is a technical indicator used to ascertain market momentum … [Read more...] about Going Back to School with Stock Market Fundamentals