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.
2023-08-21 12:25:00 Monday ET
Steven Shavell presents his economic analysis of law in terms of the economic outcomes of both legal doctrines and institutions. Steven Shavell (2004)
2025-08-02 13:31:00 Saturday ET
Chip Espinoza, Mick Ukleja, and Craig Rusch shine fresh light on the core competences for managing millennials as part of the new modern workforce in recent
2017-11-13 07:42:00 Monday ET
Top 2 wealthiest men Bill Gates and Warren Buffett shared their best business decisions in a 1998 panel discussion with students at the University of Washin
2019-06-23 08:30:00 Sunday ET
The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare
2019-10-23 15:39:00 Wednesday ET
American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization. The Business Roundtable offers this statement
2018-01-21 07:25:00 Sunday ET
As he refrains from using the memorable phrase *irrational exuberance* to assess bullish investor sentiments, former Fed chairman Alan Greenspan discerns as