Fed’s Bullard Says Recession Fears Off-Base and Urges More Hikes
Steve Matthews Bloomberg April 18, 2023 A strong labor market should keep the expansion going, he says Bullard reiterates favored rate outlook in Reuters interview Federal Reserve Bank of St. Louis President James Bullard said he favored continued interest-rate hikes to counter persistent inflation, while recession fears are overblown. “Wall Street’s very engaged in the idea there’s […]
US Paychecks Are Outpacing Inflation, Giving Fed Fodder for Hike
Molly Smith Bloomberg April 18, 2023 Median earnings ran above consumer prices in first quarter Strong wage gains may tilt Fed toward another rate hike in May US workers are starting to see pay gains run faster than inflation, amplifying their purchasing power and giving the Federal Reserve reason to raise interest rates again next […]
Yellen says U.S. banks may tighten lending and negate need for more Fed rate hikes
David Lawder Reuters April 15, 2023 WASHINGTON, April 15 (Reuters) – U.S. Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. Yellen said in a “Fareed Zakaria GPS” interview […]
Here’s how the second-biggest bank collapse in U.S. history happened in just 48 hours
Hugh Son Rohan Goswami Jonathan Vanian CNBC March 10, 2023 The company’s downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet. “This was a hysteria-induced bank run caused by VCs,” Ryan Falvey, a fintech investor of Restive Ventures, told CNBC. […]
US Core CPI Tops Estimates, Pressuring Fed as It Weighs Hike
Augusta Saraiva BloombergMarch 14, 2023 Underlying gauge rose 0.5% in February, most in five months Shelter accounted for more than 70% of overall monthly gain Underlying US consumer prices rose in February by the most in five months, forcing a tough choice for Federal Reserve officials weighing still-rapid inflation against banking turmoil in their next […]
Powell’s Legacy Risks Being Tarnished Further by SVB Collapse
Rich Miller BloombergMarch 15, 2023 Fed faulted for not heading off troubles at the bank Former Fed Governor Tarullo calls it a ‘supervisory failure’ The collapse of Silicon Valley Bank threatens to further besmirch the reputation of Federal Reserve Chair Jerome Powell, on top of the blemish he’s suffered for being slow to recognize the risk of […]
US Producer Prices Unexpectedly Fall, Signaling Easing Pressures
Reade Pickert BloombergMarch 15, 2023 US producer prices unexpectedly declined in February, pointing to an easing of cost pressures in corners of an economy still battling the highest inflation in a generation. The producer price index for final demand fell 0.1% from the prior month and increased 4.6% from a year earlier, according to data out Wednesday […]
US services sector grows steadily; prices remain elevated
Lucia Mutikani ReutersMarch 3, 2023 Services sector PMI dips to 55.1 in February from 55.2 New orders index rises to highest level since late 2021 Prices paid measure falls to two year-low, but still high WASHINGTON, March 3 (Reuters) – The U.S. services sector grew at a steady clip in February, with new orders and […]
US Retail Sales Jump by Most in Nearly Two Years in Broad Gain
Augusta Saraiva BloombergFebruary 15, 2023 Value of purchases increased by 3% in January, above estimates Gain was broad based, led by autos, restaurants and furniture US retail sales rose in January by the most in nearly two years, signaling robust consumer demand that could bolster the Federal Reserve’s resolve to keep raising interest rates in […]
Jeremy Siegel sees stocks rallying 10%-15% in 2023 as lower rates outweigh a mild recession
Scott Schnipper CNBCFebruary 2, 2023 Stocks can rally 10% to 15% in 2023 as investors react more to the prospect of lower interest rates in the second half of 2023 than to a relatively small decline in corporate profits this year, Wharton School of Business professor emeritus Jeremy Siegel said on CNBC’s “Squawk Box” Thursday. […]