2018-12-07 11:35:00 Fri ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold. NYSE and NASDAQ share prices rebound in response to the accommodative monetary policy moderation. Dow Jones surges about 600 points primarily due to this less hawkish stance. Wall Street expects the current interest rate hike to taper off. As a result, the U.S. dollar weakens a little bit relative to the major trade-weighted-average greenback index.
FOMC minutes reveal the high likelihood of another quarter-point increase in the federal funds rate in December 2018. However, some FOMC members propose removing the reference to *further gradual increases* in the target range insofar as the current stock market conditions persist. The federal funds rate might be near its neutral level so that some further rate hikes might inadvertently slow the current macroeconomic expansion and productivity growth. Within the target neutral range of interest rates, the U.S. economy operates with lower unemployment (3.7%) with minimal inflationary pressure (2%). Several FOMC members continue to express their deep concerns about Sino-U.S. tariff tension, corporate leverage, and public debt accumulation. The Trump team should exercise a fair bit of fiscal discipline in taxation and infrastructure with interim arrangements for Sino-American fair trade.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-10-25 07:49:00 Friday ET

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years. The current U.S. Treasury fiscal budget deficit rises from $779 billion to $1.0
2018-06-07 10:36:00 Thursday ET

AT&T wins court approval to take over Time Warner with a trademark $85 billion bid despite the Trump administration prior dissent due to antitrust conce
2022-02-22 09:30:00 Tuesday ET

The global asset management industry is central to modern capitalism. Mutual funds, pension funds, sovereign wealth funds, endowment trusts, and asset ma
2018-01-17 05:30:00 Wednesday ET

European Union antitrust regulators impose a fine on Qualcomm for advancing its key exclusive microchip deal with Apple to block out rivals such as Intel an
2024-05-27 03:23:34 Monday ET

Stock Synopsis: Life insurers emphasize profit margins over sales growth rates. We review and analyze the recent market share data in the U.S. life insur
2017-09-03 10:44:00 Sunday ET

President Donald Trump has released his plan to slash income taxes for U.S. citizens and corporations. The corporate income tax rate will decline from 35% t