New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy.

Dan Rochefort

2019-01-02 06:28:00 Wed ET

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy. The Federal Reserve can respond to stock market plunges, but key FOMC members still view the U.S. economy as sufficiently strong to grow with higher interest rates. Williams emphasizes softening the central bank language that the next 2 interest rate increases are only economic projections. The upward interest rate trajectory is not a matter of right-or-wrong with Wall Street, and the central bank cannot be on autopilot at this stage of the real business cycle. Williams expects U.S. real GDP to slow to 2%-2.5% in 2019 from 3%-3.5% in 2018, whereas, inflation should be around 2% in 2019. Trump tariffs continue to pose a major tone of economic policy uncertainty.

Treasury Secretary Steven Mnuchin tries to assuage bank CEOs and stock market investors that the Trump administration has no power to oust Fed Chair Jay Powell for his recent interest rate hike. Mnuchin seeks consultation with the Securities and Exchange Commission and Federal Reserve on the partial government shutdown and stock market turmoil. This stock market plunge protection team hence receives reassurance from banks that there is ample liquidity for lending to both consumers and firms.

 


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 Trump administration teams up with western allies to bar HuaWei and other Chinese tech firms.

Daisy Harvey

2019-02-02 11:36:00 Saturday ET

The Trump administration teams up with western allies to bar HuaWei and other Chinese tech firms.

The Trump administration teams up with western allies to bar HuaWei and other Chinese tech firms from building the 5G high-speed infrastructure due to natio

+See More

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation.

Chanel Holden

2019-07-11 10:48:00 Thursday ET

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation.

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation, whereas, Japan, South Korea, and Taiwan suffer from the current trade stando

+See More

The new world order of trade helps accomplish non-economic policy goals such as national security and technological dominance.

Amy Hamilton

2024-01-31 14:33:00 Wednesday ET

The new world order of trade helps accomplish non-economic policy goals such as national security and technological dominance.

The new world order of trade helps accomplish non-economic policy goals such as national security and technological dominance. To the extent that freer

+See More

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Becky Berkman

2018-10-13 10:44:00 Saturday ET

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-O

+See More

All of the 18 systemically important banks pass the annual Federal Reserve stress tests.

James Campbell

2019-07-30 15:33:00 Tuesday ET

All of the 18 systemically important banks pass the annual Federal Reserve stress tests.

All of the 18 systemically important banks pass the annual Federal Reserve stress tests. Many of the largest lenders announce higher cash payouts to shareho

+See More

Due to U.S. tariffs, Apple, Nintendo, and Samsung start to consider making tech products in Vietnam instead of China.

Jonah Whanau

2019-09-03 14:29:00 Tuesday ET

Due to U.S. tariffs, Apple, Nintendo, and Samsung start to consider making tech products in Vietnam instead of China.

Due to U.S. tariffs and other cloudy causes of economic policy uncertainty, Apple, Nintendo, and Samsung start to consider making tech products in Vietnam i

+See More