A jittery, volatile week on global financial markets has burst into a frenzy of selling, triggered by heavy losses on Wall Street and comments by Donald Trump describing US interest rate rises as “crazy”. Europe suffered heavy losses in morning trading on Thursday. The Stoxx 600 index, which tracks the biggest shares in the region, tumbled by 1.6% to its lowest level since the start of February 2017. The MSCI world stock index hit an eight-month low. The sell-off has dragged the FTSE 100 index into a correction – the blue-chip index has now lost more than 10% of its value since May, when it traded at an all-time high of 7,903. The FTSE was down 128 points on Thursday morning, sliding 1.8% to 7,017.39. Asian markets were also in the red. The Nikkei index in Tokyo lost 4%, while Hong Kong’s Hang Seng was down 3.8% and the Shanghai market tumbled 5.2%. In Australia the benchmark S&P/ASX200 index closed down 2.7%, suffering its worst one-day fall since February. … [Read more...] about World stock markets dive as Trump attacks ‘crazy’ US rate hikes
Us fed rate
FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo (Reuters) - The Federal Reserve, which cut interest rates three times this year to shield the U.S. economy from a global slowdown, will not need to do any more to boost growth until late next year, after Americans have picked a president. That is the read from traders on Friday after a government report showed employers added 266,000 jobs last month, many more than expected and a sign the longest U.S. economic expansion has yet to run out of steam. The U.S. central bank, already expected to keep rates in the range of 1.5% to 1.75% at its meeting next week, had signaled that only a significant turn for the worse in the economic outlook could trigger more policy easing. Friday’s strong read on the state of the job market gave traders reason to bet Fed policymakers will remain on hold until next November. That would allow them to lay low during … [Read more...] about Don’t touch that dial! Traders see Fed on hold until after 2020 election
SAN FRANCISCO (Reuters) - As U.S. Federal Reserve officials hone their monetary policy playbook in preparation for the next economic downturn, it appears they will eschew more controversial approaches tried by other global central banks, including one that President Donald Trump has called on the Fed to try. FILE PHOTO: A man rides a bike in front of the Federal Reserve Board building on Constitution Avenue in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid Minutes of the Fed’s late October meeting, released on Wednesday, show U.S. central bankers jettisoning any real consideration of using negative interest rates to stimulate the economy. Trump has repeatedly urged the Fed to lower rates to below zero, arguing that negative rates in Europe and elsewhere give those countries a competitive advantage. The minutes make clear that not only is the Fed unwilling to use negative rates now, when the U.S. economy is growing, but it is also deeply skeptical of … [Read more...] about Fed shows little appetite for bold policy change sought by Trump
SAN FRANCISCO (Reuters) - The bar for cutting U.S. interest rates may get a little lower next year when a new crop of central bankers rotate into voting spots on the Federal Reserve’s policy-setting panel as part of its annual membership reshuffle. FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis/File Photo The four regional Fed bank presidents gaining a vote on interest rates starting in January are slightly less hawkish overall than the four they replace, a review of public comments and voting records shows. Fed Chair Jerome Powell has said that after three rate cuts this year, only a “material” change to the economic outlook could trigger a further reduction. When they meet next week for the last time this year, policymakers are expected to leave rates in the current range of 1.5% to 1.75%. Next year will be a different story, says Oxford Economics’ Gregory … [Read more...] about Fed voters a less-hawkish bunch in 2020, lowering bar for U.S. rate cut
US figures have shown the lowest jobless rate since the year of the first moon landings, keeping the world’s largest economy on course for further interest rate rises. Eagerly awaited figures for jobs and wages showed less inflationary pressure in the world’s biggest economy than had been feared, but still pointed to more hikes by the Federal Reserve. Financial markets had been braced for a sharp sell off had the latest monthly payroll numbers indicated faster employment growth and pay increases in September, which could have paved the way for faster-than-expected monetary tightening by the US central bank. As a result of the figures undershooting the most optimistic expectations, losses were smaller than feared in early trading in New York but all the major US markets ended down with the biggest losses on the tech heavy Nasdaq exchange. Data from the Bureau for Labour Statistics (BLS) reported an increase in non-farm payrolls of 134,000 in September, well below the 180,000 … [Read more...] about US unemployment rate falls to lowest level since 1969
Last week, US Deputy Attorney General Rod Rosenstein took aim at a once-fringe public health movement that’s now gaining political traction due to the rising death toll of the opioid epidemic.In a forceful op-ed in the New York Times, Rosenstein slammed so-called safe injection sites, where people can use heroin and other drugs under medical supervision without threat of law enforcement. Prompted by California’s recent approval of one such site in San Francisco, he said drug users need treatment, not “a taxpayer-sponsored haven to shoot up.”Roughly 100 safe injection sites exist in 66 cities across the world, but the US has yet to open one, despite a relentless overdose epidemic that killed nearly 72,000 Americans last year. The problem has gotten so dire that at least 20 cities, counties, and states have started to talk about opening these sites — despite the threat of a federal crackdown.“Because federal law clearly prohibits injection sites, … [Read more...] about The Feds Say Safe Injection Sites Are Illegal. Here Are All The Places Considering Them Anyway.