Could Overly Easy Credit and a Soaring Stock Market Threaten the Fed’s Fight Against Inflation? As the Federal Reserve kicks off its two-day meeting, stocks continue to rally, with the S&P 500 ending January with a gain of 6.2%. The tech sector performed even better, with a 9.2% increase in the same period. Meanwhile, interest … Read more
Inflation slowed for a sixth-straight month in December, data out Thursday showed. This downtrend in price increases suggests that, at last, the Federal Reserve’s inflation-fighting interest rate hikes seem to be working. But this tool likely won’t be enough to bring inflation down to levels consistent with the Fed’s 2% target. At least not in the … Read more
At a forum discussing central bank independence, Federal Reserve Chairman Jerome Powell emphasized the necessity for the central bank to operate independently from political influence as it addresses persistent inflation. In his speech delivered to Sweden’s Riksbank, Chairman Powell stated, “Price stability serves as the foundation for a robust economy and offers immeasurable benefits to … Read more
WASHINGTON – Federal Reserve Chairman Jerome Powell confirmed Wednesday that smaller interest rate increases are likely ahead even as he sees progress in the fight against inflation as largely inadequate. Echoing recent statements from other central bank officials and comments at the November Fed meeting, Powell said he sees the central bank in position to … Read more
U.S. stocks sank lower early Thursday as Wall Street reeled from assertions by Federal Reserve Chair Jerome Powell that hopes for a policy pivot were “premature” after the central bank delivered a fourth consecutive interest rate hike of 75 basis points. The S&P 500 (^GSPC) fell 1.2% at open after the index plunged 2.5% in the previous session, … Read more
Traders are now seeing a near-certainty that the Federal Reserve enacts its third consecutive 0.75 percentage point interest rate increase when it meets later this month. The probability of a three-quarter point hike moved to 82% Wednesday morning, according to the CME Group’s FedWatch tracker of fed funds futures bets. That follows a series of positive economic data and … Read more
Bitcoin dropped below $20,000 on Monday as investors dumped risk assets after the Federal Reserve affirmed its commitment to an aggressive tightening path. The world’s largest digital currency tumbled 5% from Friday’s close to hitting a low of $19,526 overnight, a level unseen since July 13, according to Coin Metrics data. Other major digital tokens also … Read more
Stock futures fell Monday as worries over rising rates and tighter monetary policy added fuel to a rout that began in the previous session. Futures for the Dow Jones Industrial Average slid 208 points, or about 0.6%. Those for the S&P 500 and the Nasdaq 100 dropped 0.7% and 0.8%, respectively. Wall Street was suffered … Read more
Bitcoin (BTC) dipped to its lowest price in over a month after U.S. Federal Reserve Chair Jerome Powell doubled down on restrictive monetary policy early Friday at the central bank’s Economic Symposium. The largest cryptocurrency by market capitalization hit a low of $20,549 but is now trading around $20,666, down 4.3% over the past 24 … Read more
Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy. In his much-anticipated annual policy speech at Jackson Hole, Wyoming, Powell affirmed that the Fed will “use our … Read more
