Fed Chair Jerome Powell hints slower interest rate increases because the current rate is just below the neutral threshold.

Jacob Miramar

2018-12-07 11:35:00 Fri ET

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.

Blog+More

China poses new economic, technological, and military threats to the U.S. and many western allies.

Joseph Corr

2024-02-05 11:26:00 Monday ET

China poses new economic, technological, and military threats to the U.S. and many western allies.

China poses new economic, technological, and military threats to the U.S. and many western allies. In the U.S. government assessment, China poses new eco

+See More

Facebook, Twitter, and Google executives explain the scope of Russian interference in the U.S. 2016 presidential election.

Apple Boston

2017-09-19 05:34:00 Tuesday ET

Facebook, Twitter, and Google executives explain the scope of Russian interference in the U.S. 2016 presidential election.

Facebook, Twitter, and Google executives head before the Senate Judiciary Committee to explain the scope of Russian interference in the U.S. presidential el

+See More

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors.

Amy Hamilton

2018-12-19 17:41:00 Wednesday ET

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors.

Tencent Music Entertainment debuts its IPO on NYSE to strike a chord with stock market investors. Tencent Music goes public and marks the biggest IPO by a m

+See More

U.S. bank oligarchy has become bigger and more resistant to public regulation after the global financial crisis.

Laura Hermes

2020-02-19 14:35:00 Wednesday ET

U.S. bank oligarchy has become bigger and more resistant to public regulation after the global financial crisis.

The U.S. bank oligarchy has become bigger, more profitable, and more resistant to public regulation after the global financial crisis. Simon Johnson and

+See More

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history.

Jacob Miramar

2019-01-10 17:31:00 Thursday ET

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history.

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history. The resultant biopharma goliath would be

+See More

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes.

Apple Boston

2023-03-14 16:43:00 Tuesday ET

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes.

Several feasible near-term reforms can substantially narrow the scope for global tax avoidance by closing information loopholes. Thomas Pogge and Krishen

+See More