It's a maxim for private investors: Don't fight the Fed. The lesson may apply to central banks in developing nations as well, according to new research presented on Friday that concluded using monetary policy to fight a currency war may ultimately lead to self-inflicted wounds.
Two Fed officials offered contradictory views on the monetary-policy outlook in television interviews Friday. Louis Fed leader James Bullard again expressed support for lowering short-term rates in a CNBC interview Friday, but he also said the U.S. central bank could reverse that course of action depending on how the economy performs. Cleveland Fed leader Loretta Mester said that if the economy continues on its current path she would be unlikely to support a rate cut.
* July core CPI +0.6% yr/yr, matches forecast. * July core-core CPI +0.6%, slightly faster than June. * Soft inflation pressures BOJ to ease further. By Daniel Leussink. Japan's core consumer inflation wallowed at a two-year low in July, increasing pressure for the central bank to acknowledge price momentum was slowing and expand its radical stimulus programme.
Egypt's central bank on Thursday cut the overnight deposit rate by 150 basis points to 14.25%, its first cut since February, after July inflation figures came in significantly below expectations. The overnight lending rate was cut by 150 basis points to 15.25%, the bank said in a statement after a meeting of its monetary policy committee.
Egypt's central bank on Thursday cut the overnight deposit rate by 150 basis points to 14.25% after July inflation figures came in significantly below expectations. The overnight lending rate was cut by 150 basis points to 15.25%, the bank said in a statement. Seven out of 13 economists surveyed by Reuters had said the bank's monetary policy committee would cut overnight rates by 100 bps.
Wells Fargo/Gallup Investor Optimism Index falls 13 points after early August market decline According to the Wells Fargo/Gallup Investor Optimism Index, U.S. investor optimism fell to its lowest point since the fourth quarter of 2016 as investor confidence weakened in the 12-month outlook for the stock market and U.S. employment.
U.S. stocks climbed modestly higher on Thursday morning as investors watched an annual conference in Jackson Hole, Wyo., where central bank leaders will discuss global monetary policy and economic health. The Dow Jones Industrial Average rose 110 points, or 0.4%, to 26,314, the S&P 500 index climbed 0.3% to 2,934, while the Nasdaq Composite Index picked 16 points to reach 8,037, a gain of 0.2%. The Jackson Hole gathering comes after the release of minutes from the Federal Reserve's...
U.S. investors have struggled to get their heads around negative yielding debt. U.S. investors have looked with incredulity at the near $17 trillion of negative-yielding bonds across the world amid global economic concerns and easier monetary policy by central banks. Textbook finance theory, itself, has struggled to explain why investors might want to tie their money in debt that if held through the entirety of its existence would give back less money than what had been...
Gold prices were steady on Thursday, holding above the key $1,500 an ounce level, as investors awaited a central bankers' conclave for clues on future interest rate cuts. FUNDAMENTALS. * Spot gold was flat at $1,501.73 per ounce by 0143 GMT. * U.S. gold futures were down 0.3% at $1,511.50 an ounce.
By Gunjan Banerji, Avantika Chilkoti and Jessica Menton. U.S. stocks climbed Wednesday as strong earnings reports from retailers eased some of the fears about slowing economic growth. Bond and equity markets have been gloomy about global growth in recent weeks, with many investors expecting a cycle of monetary easing from leading central banks.
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