2018-12-22 14:38:00 Sat 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
Federal Reserve raises the interest rate to the target range of 2.25% to 2.5% as of December 2018. Fed Chair Jerome Powell highlights the dovish interest rate hike that the U.S. economy seems sluggish in terms of real GDP per capita economic growth, employment, and capital investment. Some economic indicators such as household income and wage momentum soften in the current macro outlook.
Wall Street reacts negatively to the Powell comment about continuing to shrink the Federal Reserve balance sheet. Several stock market indices slump to the lowest levels in the fiscal year 2018. Dow Jones declines 352 points or 1.5%; S&P 500 also declines 1.5%; and NASDAQ plunges 2.3% as of mid-December 2018. This stock market pain extends to global markets: European and Asian stocks exhibit sharp losses around 3% on the next business day.
The Federal Reserve expects to ease the current interest rate hike with no more than 2 to 3 rate increases in 2019. Chairman Powell conveys his unusual dovish tone that the current interest rate hike reflects healthy fundamental recalibration in U.S. financial markets. This rate hike benefits most savers and traders who receive dividend and interest income from their stock and bond market investments.
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.
2018-03-25 08:39:00 Sunday ET
President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war as China hits back with retaliatory tariffs on $3 billion U
2023-12-08 08:28:00 Friday ET
Tax policy pluralism for addressing special interests Economists often praise as pluralism the interplay of special interest groups in public policy. In
2018-03-27 07:33:00 Tuesday ET
CNBC's business anchorwoman Becky Quick interviews Nobel Laureate Joseph Stiglitz on the current trade war between America and China. As America imposes
2019-09-17 08:33:00 Tuesday ET
Global stock market investors foresee the harbinger of a major economic downturn. Many stock market investors become anxious due to negative term spreads an
2018-03-29 14:28:00 Thursday ET
Share prices tumble for technology stocks due to Trump's criticism of Amazon's tax avoidance, Facebook user data breach of trust, and Tesla autopilo
2019-10-13 16:22:00 Sunday ET
Apple unveils 3 iPhone 11 models with new original video services and stars such as Oprah Winfrey, Jennifer Aniston, and Reese Witherspoon. Apple releases t