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.
2017-06-27 05:40:00 Tuesday ET
These famous quotes of self-made billionaires are inspirational words of wisdom on financial management, innovation, and entrepreneurship. For financial
2018-05-19 09:29:00 Saturday ET
Treasury Secretary Steve Mnuchin indicates that the Trump team puts the trade war with China on hold. The interim suspension of U.S. tariffs should offer in
2019-04-27 16:41:00 Saturday ET
Tony Robbins suggests that one has to be able to make money during sleep hours in order to reach financial freedom. Most of our jobs and life experiences tr
2020-01-08 08:25:00 Wednesday ET
Conservative Party wins the British parliamentary majority in the general election with hefty British pound appreciation. In response to this general electi
2019-11-01 12:31:00 Friday ET
Kourtney Kardashian shares the best money advice from her father. This advice reminds her that money just cannot buy happiness. As the eldest of the Kardash
2023-06-28 09:29:00 Wednesday ET
Carmen Reinhart and Kenneth Rogoff delve into several centuries of cross-country crisis data to find the key root causes of financial crises for asset marke