Sunday, 13 October, 2019

FOMC monetary policy remains unchanged - Rabobank

Image of eurusd daily chart Increased inflation concerns loom ahead of Fed's committee meeting
Russell Knight | 12 November, 2018, 03:16

The US Federal Reserve held interest rates steady on Thursday but remained on track to keep gradually tightening borrowing costs, as it pointed to a healthy economy that was marred only by a dip in the growth of business investment.

One camp of Fed officials says that so long as unemployment keeps falling below the level they project is consistent with stable inflation, which many believe is likely amid continued stimulus from government spending increases and tax cuts, they should raise rates to a level that would restrict growth to prevent the economy from overheating.

Despite a USA trade war with key nations, weaker corporate investment and a sluggish housing market, the Fed is showing confidence in the economy's resilience.

Investors anticipate policymakers will push rates higher at least three more times in 2019, a standard policy response to a booming economy that also buys central bankers wiggle room in the event of a downturn.

In September, Fed officials penciled in plans to raise their benchmark short-term rate once more this year.

"By the middle of next year, however, we expect economic growth to slow below its potential pace, which would force the Fed to the sidelines", he said in a note. Analysts will be studying the minutes of this week's meeting, to be released in three weeks, for any insight into economic threats Fed policymakers may see, such as the trade war between the United States and China.

The Fed's policy decision was unanimous. The market pullback received no mention in the Fed's statement, unlike earlier downdrafts in 2015 and 2016.

Overall U.S. economic output expanded at a 3.5% annual rate in the third quarter after rising at a 4.2% pace in the second quarter, the Commerce Department reported last month.

Williamson, No. 4 Duke pull away from Army, 94-72
If he can score 28 points against a top-five team imagine what can happen against teams that are generally less successful. The following three keys are things Duke needs to do in order to get better and take care of Army . "And that's good.

Kaur's 103 sets up easy win for India
Sana's off-day (0/32 in 4 overs) was one of the factors for Pakistan not being able to contain Australia during the initial overs. The contest was as good as over for New Zealand after Bates' dismissal and India kept up the pressure on their opponents.

Dortmund twice come from behind to beat Bayern
Reus should have scored again when Jadon Sancho found him completely free, but Kimmich got back with a goal-line clearance for Bayern .

Last week, the government reported that the economy added a sizable 250,000 jobs in October and that average pay rose 3.1 percent over the previous 12 months - the sharpest year-over-year gain in almost a decade.

If Jerome Powell, the Fed's chairman, sounds calm about inflation, the markets will rally.

Labour market conditions are tightening with fewer available workers around to fill a large and increasing number of vacant positions. New Fed Vice Chair Richard Clarida, in a speech October 25, tweaked that guidance to call for "some further gradual" hikes - adding the word "some".

At the same time, the nervousness among stock investors reflects the reality that the Fed's steady march toward higher rates is removing a key factor that has underpinned the bull market in stocks: The richer returns that investors could achieve in stocks than in bonds or savings accounts.

President Donald Trump has repeatedly berated the Fed for hiking rates too quickly, which he fears will harm economic growth, but the Fed remains committed to getting interest rates back to more normal levels given how well the economy is doing now.

Officials voted unanimously in September to raise their benchmark rate to a range between 2% and 2.25%.

Powell, who was Trump's hand-picked choice to lead the Fed, has avoided responding directly.

Recommended

Mixed Election Result: No Blue or Red Wave - Now What? Mixed Election Result: No Blue or Red Wave - Now What? Trump had aggressively campaigned in the closing days of the race, his focus on boosting Republicans in states he carried in 2016. On the morning of the election, Real Clear Politics ' average of the most recent polls put Gillum up by 3.6 points.

Accused mail bomber Sayoc to face new charges Accused mail bomber Sayoc to face new charges The document said Sayoc mailed 16 improvised explosive devices though the USA mail to victims across the country. DNA, including fingerprints on two envelopes, linked Sayoc to numerous devices, prosecutors said.

William and Kate attend conservation awards William and Kate attend conservation awards Married to Kate Middleton since 2011, the heart of Prince William was taken from his university years where he met his future wife at a party.

Thousand Oaks Gunman's Track Coach Says He Assaulted Her in High School Thousand Oaks Gunman's Track Coach Says He Assaulted Her in High School Later, Trump talked about Long potentially suffering from post-traumatic stress disorder. But he was a very, very mentally ill person". - With files from the Associated Press .

Kristaps Porzingis has not started running nine months after having ACL surgery Kristaps Porzingis has not started running nine months after having ACL surgery Fizdale said that the Knicks trainers were aware that Porzingis had been running and recommended places for Porzingis to sprint. The Knicks have opened the season 4-8 and sport the youngest roster in the National Basketball Association .

Man City assert their superiority as Jose Mourinho holds back Man United Man City assert their superiority as Jose Mourinho holds back Man United Man City entered the weekend as one of three unbeaten teams in the Premier League along with Chelsea and Liverpool . Mourinho had picked a team to defend and play for a point. "Maybe the game at Old Trafford will be more important".

Saudi Arabia cornerstone of stability in region, Trump to Macron Saudi Arabia cornerstone of stability in region, Trump to Macron They had arrived a few minutes late, missing the exact moment - 11 a.m. on November 11, 1918 - that four years of fighting ended. He said: 'The Trumps could easily have got to Beaulleau by road too - with a limousine escort it would take less than an hour'.

Crackdown 3 Finally Gets Firm February Release Date Crackdown 3 Finally Gets Firm February Release Date Of course, the introduction of mouse and keyboard support is a big deal, especially for competitive titles such as Fortnite . This also opens up the console to accommodate a variety of other genres, such as real-time strategy, much better, .

Watch Dan Crenshaw Troll Pete Davison With Ariana Grande Ringtone Watch Dan Crenshaw Troll Pete Davison With Ariana Grande Ringtone What's more he then turned the tables on Davidson to mock his appearance, and the failure of his relationship with Ariane Grande. Can you imagine being Pete Davidson's mom? Crenshaw's appearance was both amusing and fitting on Veteran's Day weekend.

China's annual shopping frenzy shatters records again China's annual shopping frenzy shatters records again It had started in the 1990s on university campuses as a celebration of being single, a retort of sorts to Valentine's Day. E-commerce giant Alibaba has set new sales records on Sunday for its biggest shopping day, the annual Singles Day .

ATP Tour Finals Day One: Market relatively accurate for both clashes ATP Tour Finals Day One: Market relatively accurate for both clashes However, Federer will also be in the running for the trophy after he became the second seed following Rafael Nadal's withdrawal. JOHN ISNER (33/USA/10): The mark-up giant from the U.S. came in for the injured Rafael Nadal to the field of participants.

Bell unlikely to report by deadline Bell unlikely to report by deadline The franchise tags the Steelers have attached to him will affect any offers teams throw his way. Bell, 26, would instead wait until free agency before signing a new contract.

Trump calls French president 'good friend' after testy tweet Trump calls French president 'good friend' after testy tweet One source stated that the idea that the President's helicopter Marine 1 could not fly in wet weather was "preposterous". His actions have raised questions about the state of longstanding U.S. relationships.

Future seems uncertain for Trump's acting attorney general Future seems uncertain for Trump's acting attorney general The president also said , "I don't know Matt Whitaker ", even though he has met with him more than a dozen times . The next few weeks are expected to be critical for the Mueller investigation.

One killed in Melbourne knife rampage terror attack One killed in Melbourne knife rampage terror attack Prime Minister Scott Morrison said "radical, violent, extremist Islam" poses the greatest threat to Australia's national security. The man assaulted a police officer through the vehicle window, and then produced a knife and attempted to attack police officers.