Federal Reserve Chairman Jerome Powell touched off a surge in stock prices Wednesday after saying the outlook for the US economy remains solid and interest rates are almost within a "neutral" range.He said interest rates are "just below" their so-called neutral range, the level at which they're neither speeding up nor slowing down the economy.When stock markets fell last month, Mr Trump blamed the Fed, accusing it of being "crazy" and "loco" for raising interest rates too fast. So far, I'm not even a little bit happy with my selection of Jay [Powell]. Not the outlook for the United States economy which, while expected to see a slower rate of growth in 2019, is still growing at a sufficient pace to justify further increases in the cost of borrowing. I'm not going to say it's so much Trump ー that Trump has been sending mean tweets about Chairman Powell.Trump has been attacking Powell since last summer as the central bank was raising rates, and the criticism escalated last month as … [Read more...] about Markets Right Now: Banks, technology lead United States stocks lower
United states economy
Investors will also be looking for signs that the Fed is moving from an accomodative to a neutral policy stance, either via a change to the Fed's statement - which in August said, "The stance of monetary policy remains accommodative" - or an implicit signaling of this shift from Powell during his post-statement press conference.The increases come in response to a strengthening United States economy and despite Donald Trump's recent complaint that he was "not thrilled" with the Fed's hikes under its chair Jerome Powell - the president's own pick to lead the body. But he also said that inflation doesn't seem likely to spike, which would allow the Fed to continue on its gradual path to raise rates off the record lows they set following the 2008 financial crisis. Did that mean the Fed would shade toward being less aggressive or more? USA stocks initially extended gains but fell later in the trading session, with bank and financial stocks getting hit hard.That would put the USA central … [Read more...] about United States rate hike in the cards as Fed holds policy meeting
An imminent interest rate rise by the Federal Reserve is regarded as nearly certain after a report showed that America's labour market continued to boom last month.The overall rate is at an 18-year low, data showed, at 3.8 percent. Economists had previously said bad weather was to blame for slower job growth over those two months.That lifted the annual increase in average hourly earnings to 2.7% from 2.6% in April.Job growth exceeded expectations in May, and unemployment dropped to 3.8 percent.The economy added 223,000 jobs in May, compared to Wall Street estimates of about 190,000-200,000.The strength comes even as the stimulus from a $1.5 trillion income tax cut package and increased government spending is yet to filter through the economy. Inflation is running just below the Fed's 2.0 percent target.Surveys of economists had predicted that there would be a gain of about 188,000 jobs in May.Moreover, the job market is also starting to include a wider range of Americans, as the … [Read more...] about United States job growth surges, unemployment rate falls to 3.8 per cent
Supported by Business Day By ANA SWANSONAPRIL 4, 2018 Continue reading the main story Share This Page Continue reading the main story The Trump administration is on the cusp of a trade war with China, one that threatens broad swaths of the United States economy, from soybean farmers to pork producers to automobile and drug makers.On Wednesday, China threatened to retaliate against products and industries that President Trump has vowed to protect, hitting back against the administration, which detailed a list of $50 billion in Chinese imports that it plans to tax. China, in response, outlined tariffs on $50 billion worth of American soybeans, cars, chemicals and other goods, in a move likely to spark fears that the countries’ escalating confrontation could become an all-out trade war.That has many wondering what, exactly, comes next and whether the administration has a plan to prevent a damaging trade dispute between two economic giants whose markets are inextricably … [Read more...] about The United States Is Starting a Trade War with China. Now What?
Last Updated Mar 25, 2010 12:12 PM EDT Yesterday I wrote that China is working to dominate the nuclear industry, based on the country's plans to add about 70 reactors by 2020. But China's efforts don't end there, it turns out. Shortly after my post the Pew Charitable Trusts, a non-profit think tank, released a report showing that China is also on the verge of becoming the most active country in the cleantech sector, based on watts of energy installed. China is already the world leader in spending on clean energy, as it turns out. Last year, the country spent $34.6 billion, while the United States spent less than half as much, $18.6 billion. The next-closest spender was the United Kingdom, which put $11.2 billion into renewables (a full graph is at the bottom). The United States isn't losing its dominant position because it's spending less on clean energy. Rather, China is spending significantly more than it has in the past, increasing its funding by almost half last year … [Read more...] about China’s Cleantech Spending Blows Past United States