Powell speech: Policy has not been as accommodative as we thought

12 Juillet, 2019, 12:39 | Auteur: Auguste Feret
  • Powell speech: Policy has not been as accommodative as we thought

Powell indicated during his prepared remarks before Congress Wednesday that a rate cut is impending due to worldwide economic turmoil. "Inflation pressures remain muted".

"Facebook has a couple billion plus users, so I think you have for the first time the possibility of very broad adoption", he said.

"Chairman Powell, thank you for your service, thank you for your work to keep the Federal Reserve independent of both parties and do your job for what it was set up to be", he said.

The dollar index.DXY against a basket of six major currencies stood little changed at 97.081 after retracing much of its losses on Thursday, when it had briefly stooped to a six-day low of 96.795.

Some surveys have suggested the manufacturing sector is creaking under stress from the trade war with China, with US firms contending not only with the cost of President Trump's import tariffs but also a deterioration of the global economy that is threatening domestic and worldwide demand. The yield on the 10-year Treasury note fell slightly 2.046%, and the yield on the 2-year slipped to 2.205%. Meanwhile, interest rate futures appeared to price in greater odds of an aggressive rate cut of half a percentage point in July. We can measure whether a rate cut is being priced-in by examining the difference in borrowing costs for commercial banks over a specific time horizon in the future.

Housing, autos drive USA inflation higher in June
The Federal Office of Statistics (Destatis) confirmed that consumer prices rose by 0.3% on the month and 1.6% on the year in June. The central bank last month downgraded its inflation projection for 2019 to 1.5% from the 1.8% projected in March.

No 'Learning on the Job' For Libra Says Bank of England Governor
However, the FPC cautioned that significant volatility and asset price changes in markets are to be expected in case of disorderly Brexit.

‘Brooklyn Nine-Nine’ Dog Who Played Cheddar Dies At 13
His pet parents added that Stewart died peacefully in his sleep listening, to the sounds of the ocean. "He was one in a million kind of dog", it continued.

Several policymakers thought rates should be lowered to "cushion the effects" of adverse shocks from events such as U.S. disputes with trading partners and to firm up inflation that is failing to meet the United States central bank's 2 per cent annual target, the minutes showed.

"The Fed has never disappointed a market with such strong expectations of action", Joseph Lavorgna, chief economist for the Americas at Natixis, wrote in a recent analysis. The market also began to price a 58% chance of a 50-basis point cut.

He said the Fed has established a working group to follow the project and is coordinating with other central banks across the globe. May's 2.3% year-over-year increase in PPI, excluding food and energy prices, had been the slowest rate since January 2018.

Though US economic growth remains largely on track, and the jobs report for June showed continued strong hiring, the events of May changed US trade policy from something of a sideshow in the Fed's view to a central concern. "The uncertainties around global growth and trade continue to weigh on the outlook".

This means a July rate cut is nearly certain, by at least 25 basis points, maybe even more, but even James Bullard, the noted dove and St. Louis Federal Reserve President in a speech at the same time as Powell's stated that 50 basis points would be "overdone" and that a 2nd cut later in the year should be enough.

Conseillé:



Populaire

Novak Djokovic enters Wimbledon "Club 70" with Federer, Connors and Becker
But that isn't figuring into the Swiss maestro's psyche ahead of his semifinal clash with the Spaniard at Wimbledon 2019. Federer and Nadal have both looked on top of their grass-court games in serene paths through to the semi-finals.

James Dyson s'offre l'appartement le plus cher de Singapour
Il occupe les trois derniers étages de la plus grande tour de la ville (290 mètres) qui en compte 64 dans le quartier d'affaires. L'inventeur britannique a déboursé la somme de 48 millions d'euros pour s'offrir le penthouse le plus cher de Singapour.

Pooja Batra ties the knot with Nawab Shah
He shared a picture and gave a caption, "It took 46 years for my soul to be Ready, and then my mate appeared. The couple is soon expected to register their marriage according to reports by Mumbai Mirror .

Benjamin Griveaux, sans grand boulevard — Mairie de Paris
Sur BFM TV, Cédric Villani a égratigné le fonctionnement du parti présidentiel dirigé par Stanislas Guerini. Des habitudes de décisions suggérées à l'avance, des décisions à l'unanimité", a dénoncé M.

Mosquitoes Were Tested. West Nile Virus Is Back In Mass.
State health officials say the mosquito-borne West Nile virus has officially returned to MA . Nickerson resident Kerri Melton says she was diagnosed with West Nile last month.

'Friends' heading to HBO Max, WarnerMedia's new streaming service, in 2020
The DC logo was also prominently featured in the video package. HBO Max will also carry original shows and movies. Further details are yet to be revealed.

Englands Jason Roy cleared to play World Cup final despite umpire outburst
Openers Roy and Jonny Bairstow (34) put on 124 for the first wicket, their fourth consecutive century stand. England's Jason Roy walks off the field after being given out by Sri Lankan umpire Kumar Dharmasena.

Highlights | Round 1 | John Deere 2019
Martin Laird was another stroke back at 65 with Ryan Palmer , Andrew Landry , Vaughn Taylor , Zack Sucher and Ryan Blaum . Twenty-year-old rookie Matthew Wolff, who picked up his first career win at the 3M Open last week, opened with a 67.

India's heavy rocket 'Bahubali' gearing up for Moon
Chandrayaan, which means "moon vehicle" in Sanskrit, exemplifies the resurgence of global interest in space. This includes a terrain mapping camera to map the lunar surface and collect data on the moon's evolution.

Pas de restes humains dans les tombes du Cimetière teutonique — Affaire Orlandi
Emanuela Orlandi , 15 ans, avait été vue la dernière fois le 22 juin 1983 au moment où elle sortait d'un cours de musique à Rome. La tombe ne contenait toutefois que la dépouille de l'homme tué en 1990 dans un règlement de comptes.