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It’s Time to Rein in the Fed

At the Kansas City Federal Reserve’s virtual Jackson Hole economic-policy symposium, Fed chairman Jerome Powell drove a final stake into the legendary inflation fighter Paul Volcker’s Fed. The new orthodoxy promises easy money as far as the eye can see and holds that inflation is good -- not Venezuelan and Zimbabwean hyperinflation of course, just a moderate dose -- thus ensuring that a dollar every year is worth less. Americans should be afraid.Powell announced the Fed’s new inflation-averaging...
Tags: News, Congress, America, Biden, MMA, Jackson Hole, Joe, Trump, Fed, The Fed, Powell, Jerome Powell, Paul Volcker, Kansas City Federal Reserve, Time to Rein, Sally Sixpack


'Biggest growth quarter of all time' will help inflation meet overhauled target, Fed's Bullard says

James Bullard REUTERS/Price Chambers Third-quarter GDP is on track for 30% growth, and such strong improvement can lift inflation closer to its new target, James Bullard, president of the Federal Reserve Bank of St. Louis, said Friday.The Federal Reserve's updated policy framework allows for periods of stronger-than-usual inflation to combat weak price growth through the pandemic.The third quarter is "the biggest growth quarter of all time in the US," and it could bring "more inflation than...
Tags: US, Trends, Markets, Economy, Unemployment, Economic recovery, Inflation, Gdp, Gross Domestic Product, Federal Reserve, Morgan Stanley, Unemployment Rate, Fed, Russell, Federal Reserve Bank, Jerome Powell


Mohamed El-Erian warns that stocks could tank if the Fed's liquidity 'engine' stops running, cites disconnect between prices and fundamentals

Reuters/Lucy Nicholson Economist Mohamed El-Erian says markets may falter as the Fed's liquidity "engine" becomes less and less powerful, and as investors begin to challenge elevated valuations. "If that engine disappears, we have a long way between where asset prices are right now and where fundamentals will validate them," he told Bloomberg TV. In a separate op-ed for Bloomberg, El-Erian said economic and corporate fundamentals must improve for valuations to be sustained. Visit Business ...
Tags: Congress, Trends, Liquidity, Markets, Bloomberg, Economic recovery, Mohamed El Erian, Stocks, Goldman Sachs, Stock Market, Jefferies, FOMC, Valuations, Central Bank, Fed, Reuters


What are the Fed's new hurdles for rate hikes? Only the Fed knows

It may be years before the economy reaches any of those hurdles, let alone all three, fresh forecasts released by the Fed on Wednesday suggest. Fed Chair Jerome Powell said the economy was a "long way" from meeting this test and that he would "love" to get back to the pre-crisis unemployment rate of 3.5% or lower, from 8.4% now.
Tags: News, Fed, Jerome Powell


US stocks drop as traders mull the Fed's uncertain economic outlook

Andrew Kelly/Reuters US stocks closed lower on Thursday as investors continued to digest the Fed's uncertain economic outlook and weekly jobless claims that still exceed the highs of the Great Recession.Federal Reserve Chair Jerome Powell's comments on Wednesday expressed uncertainty in the economic recovery and mentioned that the Fed didn't expect to raise interest rates until at least 2023.Additionally, weekly jobless claims fell by more than 30,000 from the previous week, to 860,000, th...
Tags: US, Trends, Opec, Treasury, Richard Branson, Federal Reserve, Donald Trump, Yelp, Dow Jones, Branson, Chamath Palihapitiya, Fed, SPAC, Saudia Arabia, Jerome Powell, Matthew Fox


Dow tumbles 320 points as tech sell-off outweighs encouraging jobless-claims data

Getty Images / Xinhua News Agency US stocks fell on Thursday, even as weekly jobless-claims data came in better than expected.Weekly jobless claims fell by more than 30,000 from the previous week, to 860,000, though that was higher than the consensus estimate of 850,000.Tech stocks led the decline as investors continued to digest Federal Reserve Chairman Jerome Powell's comments on Wednesday expressing uncertainty about the economic recovery and saying the Fed didn't expect to raise intere...
Tags: Congress, Finance, US, Trends, Gold, Tech, Markets, Oil Prices, Virgin Galactic, Treasury, Richard Branson, Stocks, Oil Price, Wti, Gold prices, Federal Reserve


Why are stocks dropping? Hint: It involves Jerome Powell

The Federal Reserve has pledged to keep interest rates near rock bottom for a long time to come. But a hazy outlook for an economy deeply scarred by the pandemic is still worrying investors, pushing US stock futures down sharply on Thursday.
Tags: US, Cnn, Federal Reserve, Jerome Powell


Global stocks drop after Fed's upbeat economic outlook dents chances of more stimulus

Reuters Equities and gold slide, dollar gains after Federal Reserve ups economic forecasts, suggesting less chance of stimulus. "The recovery is here, it's well along," Fed Chairman Jerome Powell said at a press conference on Wednesday. S&P 500 futures fall 1.2%, pointing to a second day of losses, dollar index rises 0.1%. "Markets always want more," Robert Carnell, regional head of Asia-Pacific research at ING, said. "But, should you keep feeding them?" Visit Business Insider's homepage ...
Tags: Nikkei, Global, US, Trends, Asia Pacific, Deutsche Bank, Federal Reserve, Fed, Shanghai Composite, Us Federal Reserve, Powell, Reid, KOSPI, Jerome Powell, Reuters Equities, ING


US stocks close mixed as tech slump overshadows Fed's plans for long-term support

Brendan McDermid/Reuters US stocks closed mixed on Wednesday as sliding tech giants overshadowed the Federal Reserve's pledge to keep monetary support intact for the foreseeable future.Central bank policymakers signaled near-zero interest rates would last through 2023 to buttress the US economic recovery.The tech sector dragged major indexes into intraday losses, with mega-caps including Apple and Facebook leading the slump.Retail sales grew by just 0.6% in August, missing the average econ...
Tags: Apple, Energy, Facebook, Microsoft, US, Kodak, Trends, Tech, Markets, Bloomberg, Treasury, Oil Price, New York Giants, Federal Reserve, Nasdaq, Retail Sales


Fed signals near-zero rates will last through 2023 to lift economy from coronavirus recession

Getty Images / Tasos Katopodis A majority of Federal Reserve officials see interest rates staying near zero through 2023 as part of a long-term accommodative policy strategy.New economic projections published Wednesday show 16 out of 17 Fed policymakers seeing rates staying at historic lows through 2022. Thirteen officials expect rates to sit near zero through 2023.The central bank voted on Wednesday to hold interest rates at their current lows and continue asset purchases at least at the ...
Tags: US, Trends, Markets, Economy, SEC, Federal Reserve, Goldman, FOMC, Monetary Policy, Interest Rate, Central Bank, Fed, Dallas Fed, BofA, Federal Reserve Bank, Jerome Powell


Federal Reserve plans to keep interest rates near zero at least through 2023

Fed Chairman Jerome Powell said the economic outlook still remains highly uncertain and depends heavily on the ability of the U.S. to get control of the pandemic. “A full economic recovery is unlikely until people are confident that it is safe to re-engage in a wide variety of activities,” Powell said.
Tags: Federal Reserve, Fed, Powell, Jerome Powell


Federal Reserve sees rates near zero at least through 2023

By Christopher Rugaber | The Associated Press The Federal Reserve expects to keep its benchmark interest rate pegged near zero at least through 2023 as it strives to accelerate economic growth and drive down the unemployment rate. The central bank also said Wednesday that it will seek to push inflation above 2% annually. The Fed left its benchmark short-term rate unchanged at nearly zero, where it has been since the pandemic intensified in March. The Fed’s benchmark interest rate influences borr...
Tags: Congress, Sport, Soccer, United States, Treasury, OECD, Federal Reserve, Fed, The Fed, Powell, Jerome Powell, Christopher Rugaber, Associated Press The Federal Reserve, Since March the Fed, On Wednesday the Commerce Department, Organization for Economic Development


US dollar falls ahead of the Federal Reserve's rate decision while gold prices rise

Federal Reserve Board Chairman Jerome Powell testifies during a hearing on "The Semiannual Monetary Policy Report to the Congress," in front of the Senate Banking, Housing and Urban Affairs Committee in the Dirksen Senate Office Building on February 12, 2020 in Washington, DC. Sarah Silbiger/Getty Images The dollar index fell 0.2% on Wednesday, ahead of the outcome of a Federal Reserve policy meeting. Analyst Jeffrey Halley said the weakness in the dollar reflected the expectation that the ...
Tags: Congress, Washington, US, Trends, Treasury, Federal Reserve, Morgan Stanley, FOMC, Fed, Federal Reserve Board, Jerome Powell, Federal Open Market Committee, Dirksen Senate Office Building, OANDA, Senate Banking Housing and Urban Affairs Committee, Naeem Aslam


US stocks climb as investors await policy guidance from the Fed

Reuters US stocks climbed on Wednesday as investors prepared for updated outlooks and policy commentary from the Federal Reserve.Fed Chair Jerome Powell is set to speak following the conclusion of the Federal Open Market Committee's two-day meeting. The meeting is the first to take place since the central bank updated its monetary policy framework in August.Strong earnings from FedEx and Adobe lifted indexes in early trading.Retail sales for August grew just 0.6%, missing the average econo...
Tags: US, Kodak, Trends, Markets, Bloomberg, Consumer Spending, Treasury, Earnings, Oil Price, New York Giants, Federal Reserve, Nasdaq, Retail Sales, Dow Jones, Gold Price, FOMC


Fed expected to raise economic forecasts, extend vow to keep rates low

Fed Chair Jerome Powell is due to hold a virtual news briefing following the decision
Tags: Finance, Article, Fed, Reuters, FBN, Jerome Powell, Fbn/markets, Fox-business/politics/the-fed, Fox-business/person/jerome-powell, 30307b22-c58b-5904-9239-db34a1f91dab


US stock futures rise on China data ahead of upcoming Federal Reserve policy meeting

Federal Reserve Chairman Jerome Powell testifies on Capitol Hill Reuters Most stock indices were up on Tuesday following upbeat Chinese retail sales data. Retail sales in China rose for the first time in 2020 by 0.5%. Traders also prepared for the Federal Reserve policy meeting that starts on Tuesday. Gold rose to a 2-week high as confidence in markets drove investors to sell US dollars. Visit Business Insider's homepage for more stories.US stock index futures rose on Tuesday, pointing to a...
Tags: Hong Kong, Japan, UK, London, China, Germany, US, Trends, Britain, Shanghai, Treasury, Astrazeneca, West Texas Intermediate, Pfizer, Federal Reserve, Paul Lambert


Billionaire investor Stanley Druckenmiller says the stock market is in a Fed-fueled 'raging mania' that could lead to a 5-year hangover

Stanley Druckenmiller, Chairman and CEO of Duquesne Family Office LLC., speaks at the Sohn Investment Conference in New York City, U.S. May 4, 2016. REUTERS/Brendan McDermid  Stanley Druckenmiller told CNBC on Wednesday that the stock market is in a "raging mania" fueled by the Federal Reserve. The billionaire investor said that the Fed did a "great job in March" but that the recent market rally has been "excessive." "Look, everybody loves a party ... but inevitably after a big party there'...
Tags: Congress, New York City, US, Trends, Federal Reserve, Cnbc, Fed, Bernstein, Sohn Investment Conference, Jerome Powell, Druckenmiller, Duquesne Family Office LLC, Fed Chair, Stanley Druckenmiller, Duquesne Family Office, Emily Graffeo


The Fed’s brilliant plan? More inflation and higher prices

Federal Reserve Chairman Jerome Powell recently announced that the Fed is abandoning “inflation targeting” where the Fed aims to maintain a price inflation rate of up to two percent. Instead, the Fed will allow inflation to remain above two percent to balance out periods of lower inflation. Powell’s announcement is not a radical shift in policy. It is an acknowledgment that the Fed is unlikely to reverse course and stop increasing the money supply anytime soon. Following the 2008 market meltdown...
Tags: Congress, Opinion, America, Sport, Soccer, House Of Representatives, Ron Paul, Federal Reserve, Fed, Powell, Jerome Powell, Guest Commentary, Capitol Sacramento, Doug McIntyre Capitol, Bloomberg the Fed


A Wall Street strategist who nailed last week's sell-off says the only path to a 'sharply higher' stock market is a dot-com-like bubble

Associated Press The technology-driven stock market rally is on the verge of rivaling market bubbles not seen since the dot-com era and the Great Depression, according to Stifel's Barry Bannister.The only way stocks can move "sharply higher" from current levels is if a bubble is formed, fueled by near-zero interest rates and a falling equity risk premium, Bannister said.Bannister nailed last week's market sell-off, having called the market 5% to 10% overvalued just last month.Visit Busines...
Tags: Trends, Bank Of America, Treasury, Associated Press, Federal Reserve, Goldman, Bannister, Stifel, Jerome Powell, Fed Chair, Matthew Fox, Nifty Fifty, Barry Bannister, Stifel Research Read


Corporations’ Unspoken Labor Market Price Fixing Is Why Trump’s Fed Chair Wants More Inflation

Simply put, businesses didn’t pay their workers more because they didn’t have to.
Tags: Law, Finance, Government, Unemployment, Inflation, Trump, Jerome Powell, Jonathan Wolf, Wage Growth


Monetary policy overhaul will more effectively boost employment and stabilize inflation, New York Fed president says

John Williams, CEO of the Federal Reserve Bank of New York Reuters The Federal Reserve's new policy framework will help it achieve maximum employment and stable price growth more efficiently, John Williams, president of the Federal Reserve Bank of New York, said Wednesday.The central bank's plan targets inflation that averages 2% over time and maximum employment, particularly in low- and middle-income communities.The updated strategy "will meaningfully improve our ability to achieve both of...
Tags: US, Trends, Markets, Economy, Williams, Inflation, Federal Reserve, John Williams, FOMC, Monetary Policy, Central Bank, Fed, Bernstein, New York Fed, Federal Reserve Bank of New York, Federal Reserve Bank


Why Warren Buffett's Berkshire Hathaway has a $7 billion bet on 5 Japanese stocks

Warren Buffett AP Images Warren Buffett's Berkshire Hathaway revealed 5% stakes in five Japanese trading houses on Sunday.The positions in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo were worth a combined $6.9 billion as of Wednesday's close.The billionaire investor was likely attracted by their depressed valuations and sprawling operations, and may have seen them as hedges against inflation risk and US dollar weakness.Here are six reasons why Buffett may have invested.Visit Busin...
Tags: Japan, US, Trends, Bank Of America, Bloomberg, Berkshire Hathaway, Warren Buffett, Federal Reserve, Berkshire, Buffett, Reuters, Sumitomo, Jerome Powell, James Armstrong, Bill Smead, Smead Capital Management


A Wall Street chief strategist just withdrew his S&P 500 price target, citing 'unprecedented' Fed actions that have rendered valuations 'useless'

FILE PHOTO: Federal Reserve Chairman Jerome Powell testifies on Capitol Hill Reuters After last week's announcement that the Fed will alter its approach to controlling inflation, one market strategist is withdrawing his S&P 500 price target.Tony Dwyer of Canaccord Genuity said in a note published on Monday that the Fed is set to remain "historically accommodative" for a very long time, as it will no longer raise interest rates even if inflation begins to pick up.Because of this "unprecedent...
Tags: Apple, Amazon, Trends, Federal Reserve, Goldman, Canaccord Genuity, Jackson Hole, Fed, Dwyer, Jerome Powell, Matthew Fox, David Baron, Tony Dwyer, Capitol Hill Reuters


More Sellers are Listing Their Homes, But Buying Frenzy Speeds Ahead

This Zillow Weekly Market Report includes housing market data as of the week ending August 22 Seattle, WA – Aug. 28, 2020 (PRNewswire) Home seller confidence is growing and the number of new homes on the market is recovering closer to levels seen last year, according to Zillow’s Weekly Market Reporti. Still, buyer demand is outpacing this new supply as newly pending sales are up big in year-over-year numbers, driven partly by mortgage rates that fell even further this week.  Buyer...
Tags: Real Estate News, News, Real Estate, Zillow


S&P 500 heads for best August in 36 years as traders cheer continued economic recovery

Lucas Jackson/Reuters US stocks fluctuated on Monday as traders weighed the economic recovery against climbing COVID-19 cases and lingering US-China tensions.The benchmark S&P 500 remained on pace for its best August since 1984.Still, coronavirus cases continue to climb in the US. And tensions between the US and China are elevated over the potential sale of TikTok.Both Apple and Tesla gained after undergoing stock splits.Read more on Business Insider.US stocks traded mixed on Monday as tra...
Tags: Apple, Japan, Microsoft, Congress, China, Oil, US, Trends, Markets, Tesla, Walmart, Beijing, Stocks, Berkshire Hathaway, Warren Buffett, Wti


Fed: Buy a home, save the economy

Buy a home right now. Or if you own one already, refinance it. And if you have spare cash, buy some stocks. And if there’s a bubble in prices, don’t worry. It’ll get fixed later. Simply put, that’s the new message from the powerful Federal Reserve. The central bank just revised the goals of its monetary policy. The laymen’s translation? If you didn’t think rates were going to be low for a long-time, you were not listening. Cheap money is not a fad, people. Mortgage-rate cuts, for example, gave h...
Tags: Business, Real Estate, Jobs, News, Congress, California, Housing, US, Sport, Soccer, Treasury, Federal Reserve, Fed, Santa Monica, Alan Greenspan, Chapman University


Fed’s New Approach to Inflation Could Benefit Reverse Mortgage Industry

The Federal Reserve will be instituting a major shift in its posture toward achieving economic stability, maximum employment and manageable inflation according to a Thursday announcement by Chairman Jerome Powell. This signals an approach that could mean the Fed will no longer raise interest rates in its efforts to keep the unemployment rate low, and will allow inflation to run higher during periods of growth according to the New York Times. “Our revised statement emphasizes that maximum empl...
Tags: Featured, Finance, New York Times, Federal Reserve, Times, Products, Fed, Powell, Scott Gordon, FAR, Jerome Powell, LTV, HECM, Kansas City Fed, RMI, American Advisors Group


S&P 500 closes at record high after Fed signals it will keep stimulating the economy

Brendan McDermid/Reuters The S&P 500 extended record highs on Thursday after Federal Reserve Chair Jerome Powell spoke at this year's virtual Jackson Hole symposium.Powell outlined the central bank's overhauled strategy for controlling inflation and avoiding future crises. He also signaled that the Fed's monetary policy will remain accommodative as it seeks to stimulate the US economy.On the economic-data front, initial jobless claims came in at 1 million for the week that ended on Saturda...
Tags: Apple, Oil, US, Trends, Markets, Bank Of America, Oil Prices, Food And Drug Administration, Stocks, Oil Price, West Texas Intermediate, Federal Reserve, Stock Market, Nasdaq, Dow Jones, S&P 500


As COVID rages, US economy struggles to sustain a recovery

By PAUL WISEMAN | AP Economics Writer WASHINGTON — Home sales are booming. Stocks are setting record highs. Industrial production is clambering out of the ditch it fell into early this year. And yet the U.S. economy is nowhere close to regaining the health it achieved, with low unemployment, free-spending consumers and booming travel, before the coronavirus paralyzed the country in March. Not while the viral outbreak still rages and Congress remains deadlocked over providing more relief to tens ...
Tags: Business, Texas, News, Congress, California, Washington, Boston, US, Sport, Economy, West, Soccer, Connecticut, Federal Reserve, Donald Trump, Detroit


The Dow briefly turned positive for 2020

The Dow roared higher Thursday after Federal Reserve Chairman Jerome Powell revealed the central bank's new policy strategy, which will essentially keep interest rates lower for longer.
Tags: Cnn, Federal Reserve, Jerome Powell