Summers Warns Fed on 1970s-Style Mistake With CPI Set to Slow

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Breadcrumb Trail Links PMN Business Former Treasury Secretary Lawrence Summers said he’s concerned that a slowing in headline inflation in upcoming data will prompt the Federal Reserve to conclude its policies are working, when much more action is in fact needed. Author of the article: Bloomberg News Christopher Anstey ivfia)s47){ihg6xzrc]k0fn_media_dl_1.png Bloomberg RSS Article content (Bloomberg) … Read more

Big US job gains give Fed ‘a lot more work to do’ on taming inflation

The Federal Reserve will face more urgency in its fight to cool down the US economy with steep interest rate increases after the latest batch of labour market data showed an unexpected acceleration in jobs gains and strong wage growth. The figures released on Friday eased concerns that the American economy was sharply slowing down … Read more

Dow Jones Up Despite Fed Fears After Jobs Report; Biden Bill Progress Lifts Solar Stocks; Tesla Stock Falls After This

The Dow Jones Industrial Average reversed higher and indexes were off their lows after a shockingly hot July jobs report raised Fed rate hike fears. Solar plays that include SolarEdge (SEDG) were mostly positive, reacting to progress on the Biden spending bill. Tesla (TSLA) fell even though shareholders approved a 3-for-1 stock split. Meanwhile, a … Read more

Friday’s job report will likely show slower growth. That’s what the Fed wants | CNN Business

Minneapolis CNN Business  —  When the latest jobs report comes out on Friday, it very well could show the smallest number of positions added in the past 18 months. The US economy is expected to have gained around 250,000 jobs last month, according to Refinitiv. While that’s far from the 456,000 average monthly gains so … Read more

Fed officials beat inflation drum; 50-basis-point rate hike ‘reasonable’ next month

Aug 3 (Reuters) – Federal Reserve officials voiced their determination again on Wednesday to rein in high inflation, although one noted a half-percentage-point hike in the U.S. central bank’s key interest rate next month might be enough to march toward that goal. “I start from the idea that 50 (basis points) would be a reasonable … Read more

A Fed Pivot? Not Yet, Policymakers Suggest, as Rapid Inflation Lingers.

Federal Reserve officials on Tuesday made clear that they expected to continue raising rates to try to choke off the most rapid inflation in decades, putting them at odds with investors who had become more sanguine about the outlook for interest rate moves. Stocks prices rose following the Fed’s meeting last week, as investors celebrated … Read more

Gold price takes a step back after Fed speak

(Kitco News) The gold market’s price action is taking a breather following hawkish commentary from the Federal Reserve speakers, with prices pulling further away from the $1,800 an ounce target. The gold price jumped to a daily high of $1,805 an ounce Tuesday morning, led by increased geopolitical tensions as House Speaker Nancy Pelosi landed … Read more

Hawkish remarks from Fed officials prompt jump in Treasury yields

Several Federal Reserve officials on Tuesday signalled the US central bank was committed to its aggressive fight against soaring prices, prompting a jump in short-dated Treasury yields as investors priced in more interest rate rises. The two-year yield, which moves with interest rate expectations, jumped by 0.19 percentage points to 3.06 per cent, its biggest … Read more

A recession may have actually started ‘the end of last year’: Former Fed official

The U.S. economy could have entered a recession before the calendar turned to 2022. “I wouldn’t be surprised if they [the National Bureau of Economic Research] actually push the start of the recession to the end of last year,” Dreyfus Mellon Chief Economist Vincent Reinhart, who spent spent 24 years in various research roles at … Read more

The housing market correction takes an unexpected turn

The Federal Reserve has a simple inflation-fighting playbook. It goes like this: Keep applying upward pressure on interest rates until business and consumer spending across the economy weakens and inflation recedes. Historically speaking, the Fed’s inflation-fighting playbook always delivers a particularly hard hit to the U.S. housing market. When it comes to housing transactions, monthly … Read more