Published: Sun, March 04, 2018
Markets | By Terence Owen

U.S. stock indexes waver as markets wait on Fed chairman

U.S. stock indexes waver as markets wait on Fed chairman

From comments on wage growth, productivity, and inflation, here are Powell's most pertinent comments.

His then said that his "personal outlook for the economy has strengthened since December".

Mr Powell said he and his colleagues would take the firmer-than-expected data into account when they draw up their interest rate forecasts next month, prompting a rise in the dollar as some analysts increased their expectations that the Federal Open Market Committee (FOMC) will push through four rate rises in 2018.

Fed chiefs try to avoid off-the-cuff remarks that cause impromptu repricing, preferring to hew close to their job of representing the views of the Fed's rate-setting committee and avoiding disclosing much about their personal opinions.

What may make things even more muddled is how long it's been since investors have had to contend with a market where inflation is a threat and interest rates are rising, Weiss said.

The second leg of Powell's testimony, an opportunity to clarify comments made on Tuesday, is due at 3pm GMT. However, he defended his position by reiterating that the United States is not on a sustainable fiscal path and that "now is a good time to get on one".

These remarks sent the yield on the benchmark 10-year Treasury bond to over 2.9 percent, compared to about 2.4 percent last year, and raised market expectations that there would be at least three rises this year and possibly four. Higher rates can divert investors away from stocks.

The nervousness on the financial markets may have been compounded by news that striking teachers in West Virginia were denouncing a sellout agreement announced Tuesday by teachers' union leaders and planning to defy their call for a return to work on Thursday.

On the day, General Motors Co (GM.N) shares lost 4 percent, while Ford Motor Co (F.N) was down 3.0 percent.

The current framework "is working, the market understands it", Powell said.

Rajinikanth's Kaala teaser postponed, superstar pays respect to Kanchi seer
While Rajini will draw in the crowds when the movie releases on April 27, it is the supporting cast that is the icing on the cake. Rajini, whose films in the past have shown an obsession with politically-loaded punchlines, is likely to go down the same path.

Ahead of Modi meeting, Canadian PM visit marred by fresh row
Jaspal Atwal , convicted of attempted murder, had already joined Trudeau and his retinue at a reception in India . He also posted a picture of him along with Trudeau and Ella-Grace during his visit to Canada in April 2015.

Man Prominently Featured On Trump Dating Website Convicted Of Child Sex
Many people raised questions about the site not allowing LGBTQ people to join, but seemingly enabling some to commit infidelity. TrumpDating first made waves for only catering to straight supporters of the president.

Powell was asked to respond to a Wall Street Journal article which suggested that the close correlation between sectors during that period of volatility was driven by the growing popularity of ETFs.

"Gradual" has been the operative word used by the central bank since it began raising rates under Powell's predecessor, Janet Yellen, in late 2015. He said the aim of the changes was to reduce the burden of regulation "without losing any safety and soundness".

He added that despite high asset prices, the financial stability risks were at most modest.

The economy grew at a 3 per cent annual pace over the second half of past year, and it is about to receive additional stimulus from tax cuts and higher federal spending approved by Congress in recent months.

"Powell more confident on growth, putting 2018 dots in play", is how JP Morgan's Michael Feroli summed up the day, referring to the quarterly "dot plot" of projected interest rates that Fed policymakers submit.

Fed officials, particularly at the regional level, have lately focused their research on parts of the economy left behind during the recovery from the crisis, and some macroeconomic research has suggested rising inequality could impair overall growth.

These problems are compounded by the fact that since the 2008 crisis, the Fed's holdings of financial assets have expanded by almost five-fold, from $800 billion to more than $4 trillion.

In February, markets had the worst week since January 2016, and the eighth worst since 2008.

Google is blocking the World Socialist Web Site from search results.

Like this: