Category: Macro
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Chicago Fed: Economy Picked Up Pace in November
U.S. economic growth picked up pace in November as production improved, data from the Federal Reserve Bank of Chicago showed Tuesday. The Chicago Fed National Activity Index rose to 0.03 in November, improving from a revised minus 0.66 in October, with the majority of indicators marking improvement. The reading below zero suggests economic activity is…
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Unemployment, PMI and Other Can’t Miss Items This Week
Last week the market finished green again with the S&P 500 finishing up almost 1%. This makes it the 8th consecutive week with the SPY finishing higher than it opened. Two of the big events last week were the Fedex (FDX) earnings and the PCE release Friday morning. Fedex missed earnings and revised down the future forecasts which…
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Iron Ore Skyrockets Amid Stimulus Expectations and Robust Demand Forecast
Iron ore futures experienced an uptick on Tuesday, fueled by optimism over potential economic stimulus actions aimed at revitalizing the Chinese economy and the expectation of sustained demand. Closing at 980.5 yuan ($137.22) per metric ton, the most actively traded May iron ore contract on the Dalian Commodity Exchange (DCIOcv1) saw a 1.3% increase, recovering…
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Fed Kept Interest Rates Unchanged And Hinted At a Possible End to its Monetary Tightening
The Federal Open Market Committee (FOMC) kept interest rates unchanged in the range between 5.25% and 5.50% this Wednesday, in line with investor consensus, signaling a slowdown in inflationary pressures – a message that was well received by financial markets. In the statement released alongside the decision, the FOMC pointed out that inflation had slowed…
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NY Fed President John Williams Stresses Tight Monetary Policy to Tackle Persistent Inflation
New York Fed President John Williams reiterated that the Fed’s benchmark lending rate is at or near its highest level and stated that monetary policy is ‘quite restrictive’ (‘the most restrictive in 25 years’). Speaking at the Bretton Woods Committee conference at the New York Fed, he said he expects it to be appropriate to…
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Federal Reserve’s Preferred Inflation Measure Indicates Cooling Trend Amidst High Interest Rates
The Federal Reserve’s preferred inflation measure showed signs of cooling last month, indicating a decrease in price pressures amidst elevated interest rates and a slowing economic growth trajectory. According to a report released by the Commerce Department on Thursday, prices remained unchanged from September to October, a notable shift from the 0.4% increase observed in…
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Applications for US Jobless Benefits Rise Modestly
Slightly more Americans filed for jobless claims last week, pushing the overall number of people in the U.S. collecting unemployment benefits to its highest level in two years. Applications for unemployment benefits rose by 7,000 to 218,000 for the week ending Nov. 25, the Labor Department reported Thursday. Jobless claim applications are seen as representative…
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Beige Book Reveals Economic Slowdown in the United States
The economic activity in the United States decelerated between October and November, with six out of the 12 districts in the country indicating a slight decline during this period, according to the Beige Book, a document released by the Federal Reserve on Wednesday. According to the report, four districts reported “modest growth” during the period,…
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We Will Need to Raise Interest Rates to Maintain Restrictive Policy and Reduce Inflation, Says Bowman
Federal Reserve director Michelle Bowman said today that the United States central bank will likely need to raise borrowing costs further to bring inflation back to its 2% target in a reasonable time frame. “My basic economic outlook continues to expect that we will need to raise the federal funds rate to keep policy tight…
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Fed’s Waller: Interest Rates Are Likely High Enough To Bring Inflation Back To 2% Target
A key Federal Reserve official said Tuesday that he is “increasingly confident” that the Fed’s interest rate policies will succeed in bringing inflation back to the central bank’s 2% target level. The official, Christopher Waller, a member of the Fed’s Board of Governors, cautioned that inflation is still too high and that it’s not yet…