European stocks retreat in face of Fed rate hike

European stocks retreat in face of Fed rate hike

The index was up almost 300 points earlier. It will mean higher borrowing costs for many consumers and businesses.

According to Bloomberg, it's unclear whether Trump has the legal authority to fire Powell, as the rules about removing the head of the Federal Reserve are ambiguous. Trump has laid a lot of the blame on the Fed, saying at one point in October that the central bank was "going loco" for raising rates. Still, after Trump's stream of tweets, continued losses on Wall Street, persistent trade frictions and growing evidence of a global slowdown, some doubts have arisen among Fed watchers. For however much feeling, caressing, fondling, stroking, cupping, rubbing, massaging and pussy-grabbing of the market Jay Powell and his compatriots on the Fed Open Markets Committee have done or not done over the last few days, they still can't quit those "meaningless numbers". They are already in the bear market, fell more than 20 percent from records. Stop with the 50 B's. However, Williams believes a number of factors have weighed on the markets recently, including recent trade talks with China. "Good luck!" the president said on Twitter.

The stock market took off early Friday after New York Federal Reserve President John Williams told CNBC that the Fed will remain flexible about its rate-raising and balance sheet policy if the markets take a turn for the worse.

Ultra-low rates were used by central banks across the world during the crisis to try to aid economic recovery but policy makers in the USA are returning them to a more normal level as they focus on keeping a lid on inflationary pressures. "Policy does not need to be accommodative", he said. Powell said future rate decisions will likely depend more on newly released economic data than in the recent past. With the Fed signaling "some further gradual" rate hikes and no break from cutting its massive bond portfolio, traders fretted that policymakers could choke off economic growth.

Fed Chairman Jerome Powell said growth in other economies "has moderated somewhat over the course of 2018", and that financial market volatility "has increased over the past couple of months". But as interest rates rise and regions the US does a lot of business with, like Europe and China, also slow down, those estimates might be harder to reach. The economy is thought to have grown close to 3 percent this year, its best performance in more than a decade.

The move defies the wishes of some American politicians, among them US President Donald Trump, who called for the Fed to keep rates where they were. In Powell's case, the challenge has taken the form of a controversial policy decision due to the competing pull of domestic economic conditions and the combination of technical market fragility and a slowing global economy.

"We expect Powell will clear the air, acknowledging some softening in the growth outlook but also highlighting data dependence". He added that the latest rate increase "was appropriate for what is a very healthy economy".

"Wages have moved up for workers across a wide range of occupations, a welcome development".

Meanwhile, inflation the personal consumption expenditures price index, the Fed's preferred inflation gauge, was 1.8 per cent higher than in November 2017, back below the Fed's 2 per cent target, the Commerce Department reported.

December 20: The Conference Board's USA leading economic indicator index (LEI) was up 0.2% on a month-over-month basis in November (the median forecast was for no change) following a downward-revised -0.3% in October (originally 0.1%), 0.6% in September, 0.5% in August, 0.6% in July, 0.5% in June, 0.1% in May, 0.5% in April, 0.3% in March, 0.6% in February, and 0.7% in January.



Related Posts

Wall erupts for 40 in Wizards' blowout of Lakers
In particular, an irked Kazuma drew a tech after officials missed a blatant foul against him and he called them out on their bias. After pausing to refocus, she began again from the start of the song, got a word wrong and then skipped a couple of lines.

Fed raises interest rates by 25 bps, signals more hikes
The quarter-point hike, to a range of 2.25 percent to 2.5 percent, lifts the Fed's benchmark rate to its highest point since 2008. However, during the FOMC's last meeting in September, slightly more committee members projected three rate hikes in 2019.

Jose Mourinho sacked by Manchester United
The team's mood will be affected by the outcome of 2018's last two league games against Leipzig and Frankfurt. The team has top players. "The others have been better than previous year so that's why it's closer.

Democrats win control of the House in 2018 midterms
Marsha Blackburn was able to hold Tennessee's seat for Republicans, as current Sen. Democrats would need a swing of at least 23 votes to gain control of the House.

The Anti-Pelosi Democrats Have Started Plotting Against Her
Numerous issues already have been put forward by Representative Eliot Engel, the top Democrat on the Foreign Affairs Committee. Trump boasted a growing economy but campaigned aggressively in the closing days on a hardline anti-immigration message.

Is The Threat From Theresa May’s Brexit Hardliners Over?
He went on: "Let's assume we get a deal, I think Theresa May [.] will go whenever we tap her on the shoulder after March". The prime minister said the people have already spoken, and a second referendum is an affront to democracy.

Last Rasmussen Poll: GOP House Chances Looking Up
Which strategy you prefer depends on whether you think there are more votes to be had at this point from group one or group two. Whether at home or overseas , countering communism and socialism has emerged as one of the key themes unifying Trump's efforts.

Hurricane Michael’s Storm Surge Hits Destin Beach, Florida
The strongest Atlantic hurricane ever recorded - Wilma in 2005 - had a pressure reading of 882 mba. He said flood-prone areas should pay attention to evacuation notices if rivers began to rise.

All the Pixel 3 Features Coming to the Pixel 2
The Galaxy Note 9's 6.4-inch AMOLED display was also praised and is considered by many to be the best panel on a smartphone. On Tuesday, Made by Google announced via Twitter that they've "added an option to hide the display cutout (the notch)".

Xiaomi Mi Mix 3 has tiny bezels and 10GB of RAM
Mi MIX 3 has been able to cut down the bezels to offer the ultimate viewing experience you can find on a full-screen display . Xiaomi has finally unveiled the much-awaited Mi Mix 3 flagship smartphone at an event in its home market.

© 2015 Chester Weekly. All Rights reserved.