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
The recent British pound depreciation is a big Brexit barometer.
Apple Boston

2019-08-20 07:33:00 Tuesday ET

The recent British pound depreciation is a big Brexit barometer.

The recent British pound depreciation is a big Brexit barometer. Britain appoints former London mayor and Foreign Secretary Boris Johnson as the prime minis

+See More
Janet Yellen worries about U.S. government debt accumulation, expects new interest rate increases, and warns of the next economic recession.
Amy Hamilton

2018-11-05 10:40:00 Monday ET

Janet Yellen worries about U.S. government debt accumulation, expects new interest rate increases, and warns of the next economic recession.

Former Fed Chair Janet Yellen worries about U.S. government debt accumulation, expects new interest rate increases, and warns of the next economic recession

+See More
Apple upstream suppliers such as Foxconn and Pegatron experience sharp share price declines during the Christmas 2017 holiday quarter.
Jacob Miramar

2018-11-21 11:36:00 Wednesday ET

Apple upstream suppliers such as Foxconn and Pegatron experience sharp share price declines during the Christmas 2017 holiday quarter.

Apple upstream suppliers from Foxconn and Pegatron to Radiance and Lumentum experience sharp share price declines during the Christmas 2017 holiday quarter.

+See More
Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons.
Joseph Corr

2018-07-13 09:41:00 Friday ET

Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons.

Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons. First, America is highly dependent

+See More
Tony Robbins recommends portfolio optimization only once a year.
Laura Hermes

2017-02-19 07:41:00 Sunday ET

Tony Robbins recommends portfolio optimization only once a year.

In his recent book on personal finance, Tony Robbins recommends that each investor should rebalance his or her investment portfolio *only once a year* to in

+See More
President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.
Apple Boston

2018-05-25 07:30:00 Friday ET

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America. This new round of tariffs

+See More