Saturday, 17 August, 2019

Powell signals rate cut as trade war outweighs strong job market

Gold sees wildest price swings since 2016 Federal Reserve chairman signals cut in US interest rates
Russell Knight | 10 July, 2019, 20:38

Federal Reserve Chairman Jerome Powell appeared in Congress Wednesday to begin two days of testimony to discuss potential fiscal policy changes and the state of the US economy.

Asian shares turned mixed on Wednesday while rising Treasury yields lifted the dollar as markets wondered if the world's most powerful central banker would confirm or confound expectations for USA policy easing this month.

Powell said that since Fed officials met last month, "uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook". Despite the recent adjustments in the markets over easing expectations, there is still a strong expectation that the central bank will start an easing cycle this month.

The Fed last cut rates in 2008 at the height of the financial crisis. Until very recently, the chance of a modest quarter-point cut was put at 70% and a steep half-point cut at 30%. -China trade war hurting corporate profits.

Bond prices rose sharply as traders anticipated that the Fed would take on a looser policy on interest rates.

That change reflects two developments.

Powell has stressed the importance for the Fed of maintaining its independence from political pressure. Trump and Chinese President Xi Jinping declared a truce last month in what had threatened to become an escalating U.S. They had implied a 25% probability of an aggressive cut before an upbeat U.S.jobs report on Friday.

Instagram announces new features to help counter bullying
According to a survey published by the Pew Research Center past year , 72 percent of USA teenagers said they used Instagram . The initiative comes after Instagram has come under fire for not doing enough to tackle online bullying.

The Game of Thrones Prequel Will Have Starks and Direwolves
Martin added that the new series would be a true ensemble, not focused on one lead but a diverse group of fascinating characters. Naomi Watts , Miranda Richardson , Naromi Ackie and Denise Gough are among the ensemble cast announced by HBO.

Post G20 summit, US, China resumes trade war negotiation
However, Mr Trump stipulated that officials would take care to avoid creating new risks to U.S. national security. He then jacked up duty rates on US$200 billion in Chinese imports.

"Nothing will distract us from complete focus on our job".

However, as Powell noted, "crosscurrents" concerning trade policies and global growth have reared their head.

Powell and James Bullard, who was the only dissenting vote in favour of a rate cut at the Fed's meeting in June, are scheduled to address events this week, potentially providing some clue on the policy makers' next move.

Apparent progress on trade turned to greater uncertainty, and our contacts in business and agriculture report heightened concerns over trade developments.

Fed Unsure What to Do About Facebook's Crypto TokenFed Chair Powell said that Facebook's crypto project raises "many concerns". But with unemployment at close to record lows and the U.S. economy showing continued strength, the Fed left rates unchanged at it's last meeting.

"The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signalled the likelihood of cuts".

"I've said what I've meant to say on the subject", Powell said. The Federal Reserve Act allows for Fed governors to be removed - but only "for cause" and not policy differences.

Recommended

Oil gains after US stockpiles drop, rigs evacuated Oil gains after US stockpiles drop, rigs evacuated The EIA on Tuesday revised its US crude oil production forecast for 2019 to an all-time high of 12.36 million bpd. This follows discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe.

Angela Merkel pictured shaking for third time in recent weeks Angela Merkel pictured shaking for third time in recent weeks German Chancellor Merkel later addressed this newest episode herself saying that she felt fine and there was no reason to worry. German Chancellor Angela Merkel has been seen shaking at a public event for the third time in less than a month .

Android Q will finally enable pull-down gesture for notification bar Android Q will finally enable pull-down gesture for notification bar As reported by Android Police , the beta version included a Battery Saver feature which is similar to the Low Power Mode of iOS. One issue Google highlights is navigation problems that users have been having when they have a custom launcher installed.

Judge Vacates Administration's Rule on Drug Prices in Advertising Judge Vacates Administration's Rule on Drug Prices in Advertising Judge Amit Mehta sided with the pharmaceutical companies and stated, "HHS can not do more than what Congress has authorized".

IBM acquires open-source software company Red Hat for $34 billion IBM acquires open-source software company Red Hat for $34 billion But the Red Hat acquisition will hopefully change that by driving growth in this area. According to Kirshna, there are many organizations that use both JBoss and WebSphere.

Nintendo announce Nintendo Switch Lite, a compact handheld-dedicated device Nintendo announce Nintendo Switch Lite, a compact handheld-dedicated device It finally happened: Nintendo announced the cheaper Switch console that kept popping up in rumors and reports on Wednesday. To find play mode compatibility information for specific games, please refer to the product packaging or Nintendo eShop.

United States women's soccer team to make history again with ticker-tape parade United States  women's soccer team to make history again with ticker-tape parade That includes funds that go to host cities, participating local and state organizations, U.S. Fans chanted "equal pay" from the stands in France during the post-game celebration.

Thousands Of Mainers Could Be Affected If Affordable Care Act Is Overturned Thousands Of Mainers Could Be Affected If Affordable Care Act Is Overturned In an unusual break with tradition, the Trump administration announced about a year ago that it would not defend the ACA in court. Hawkins, representing 18 states including Texas, backed by the Trump administration, said the entire law needs to be thrown out.

Justin Bieber reignites feud with Tom Cruise by laying down #BottleCapChallenge Justin Bieber reignites feud with Tom Cruise by laying down #BottleCapChallenge Justin said back then that if Tom does not take the fight then he is freaking scared and would never live it down. Bieber later backtracked on the challenge , but it seems his war of bravado with Cruise isn't over just yet.

Morris considering backing out of Spurs deal to sign Knicks, reports say Morris considering backing out of Spurs deal to sign Knicks, reports say In other words, Morris would only need to make $5 million or more on his 2020-2021 deal to make the decision worthwhile. The Spurs traded traded forward Davis Bertans to the Washington Wizards to open up the midlevel exception for Morris.

Labour confirms it will call for a second referendum - and back Remain Labour confirms it will call for a second referendum - and back Remain He said: "We will decide very quickly at the start of that campaign exactly what our position will be". And he called on the next Conservative leader to hold a second referendum before exiting the EU.

Futures Down Ahead of Fed News Futures Down Ahead of Fed News The Nasdaq composite, which is heavily weighted with technology companies, gained 43.35 points, or 0.5%, to 8,141.73. USA futures pointed to a lower opening for Wall Street, with E-Minis for the S&P500 at -0.2 percent.

New York Clears Way for Release of Trump’s State Tax Returns New York Clears Way for Release of Trump’s State Tax Returns While the committee has jurisdiction over federal tax laws, state tax laws mostly fall to the House Judiciary Committee. Ways and Means Chairman Richard Neal , D-Massachusetts, however, has signaled that he may not be interested.

France to tax flights from its airports, airline shares fall France to tax flights from its airports, airline shares fall Thus, the government of President Emmanuel Makron fulfills the promise to take measures to combat pollution and climate change. Under the tax, a business-class ticket for a flight bound out of the European Union would cost 18 euros more - about $20.

Amy Hart: Why did Amy Hart leave Love Island? Amy Hart: Why did Amy Hart leave Love Island? I did not imagine that first night I would meet this boy [Curtis] that would change my life and change my mindset. Because I don't want her to get to 40 and think, "My dad wouldn't let me go on TV when I was 26".