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.
2019-02-09 08:33:00 Saturday ET
Apple provides positive forward guidance on both revenue and profit forecasts for iPhones, iPads, and MacBooks. In the Christmas 2018 festive season, MacBoo
2019-07-07 18:36:00 Sunday ET
The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment. Even though China keeps substantial fore
2019-08-16 17:37:00 Friday ET
Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data. The European Commission probes into whether Amazon uses key third-par
2017-12-23 10:40:00 Saturday ET
Despite having way more responsibility than anyone else, top business titans such as Warren Buffett, Charlie Munger, and Oprah Winfrey often step away from
2023-01-09 10:31:00 Monday ET
Response to USPTO fintech patent protection As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved our U.S. utility patent
2020-11-10 07:25:00 Tuesday ET
The McKinsey edge reflects the collective wisdom of key success principles in business management consultancy. Shu Hattori (2015) The McKins