SAN FRANCISCO: Deep disagreements within the Federal Reserve over the economic outlook and how the U.S. central bank should respond will not stop policymakers from cutting interest rates at a two-day meeting that begins on Tuesday.While an oil price spike after attacks on Saudi Arabian oil facilities over the weekend added to the list of risks facing an economy already slowed by ongoing trade tensions and global weakness, the deep divide evident around the Fed's policymaking table means further rate cuts could be far from a done deal.At one end of the Fed's massive boardroom sit St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari, who are expected to argue for a steep reduction in borrowing costs to counter low inflation and an inverted Treasury yield curve.Pushback from the opposite end is likely to come from Cleveland Fed President Loretta Mester, who opposed the Fed's rate cut in July, and Philadelphia Fed President Patrick Harker, who only reluctantly … [Read more...] about Divided Fed set to cut interest rates this week, but then what?
Fed meeting today
Asian markets were broadly higher ahead of an expected rate cut by the Federal Reserve as investors plotted portfolio adjustments before the US central bank's meeting today. The Straits Times Index (STI) spent most of yesterday near neutral before eking out a gain of 4.15 points, or 0.1 per cent, to close at 3,350.54. "There had also been a noticeable evasion to safety trend with the defensives mostly faring better than the cyclicals," IG market strategist Pan Jingyi said of the trading session here. Markets in Australia, China, Hong Kong, Japan and South Korea all closed higher. Among them, Australia's ASX 200 gained 9.3 points, or 0.3 per cent, to 6,845.10, an all-time closing high for the index. Malaysia was closed. Yesterday, the Bank of Japan left interest rates, asset purchases and policy guidance unchanged. In Singapore, trading volume was at 1.17 billion securities, just under the daily average in the first six months of this year. Total turnover came to $1.1 billion, 4 per … [Read more...] about Asia markets end higher ahead of Fed meeting
LONDON: European stock markets on both sides of the Atlantic paused on Wednesday (Jun 19) after the previous session's strong rally, as investors awaited a key monetary policy update from the Federal Reserve.The dollar was downbeat against its main rivals, while oil prices were volatile after strong gains on Tuesday.Major crude-producing countries, including Saudi Arabia and non-OPEC members like Russia, on Wednesday said they would meet in Vienna at the beginning of July to decide on whether to prolong output cuts.US and European equity markets had rallied on Tuesday - and Asian indices playing catch-up jumped on Wednesday - on two investor-friendly developments: upbeat comments from the US and China on trade before the G20 Summit, and an ECB statement hinting at a eurozone interest-rate cut."European markets are taking a breather in the wake of yesterday's huge gains across the globe," noted Joshua Mahony, senior market analyst at IG trading group.Wall Street was "near the … [Read more...] about European stock markets hold their breath before Fed update
Last week, regional markets saw some reprieve from last month's slide, starting this month on hopes that the United States Federal Reserve would subscribe to rate cuts. With that in mind, investor sentiment over the Fed's possible moves is likely to remain a central theme driving markets this week, especially with the relatively weak US job data reading released last Friday. Charles Schwab Singapore managing director Greg Baker noted that the weak job data reading "comes on the back of last week's gross domestic product figures, when US economic growth was revised down, albeit by less than expected". As a result, market observers are now expecting the Fed to lower interest rates twice by late January next year, in order to ease worries of a global growth slowdown. "However, we believe that a rate cut following next week's Federal Open Market Committee meeting is unlikely, and economic data would have to deteriorate much more for a rate cut to come to pass near-term," Mr Baker … [Read more...] about Fed rates, trade tensions will drive market sentiment
WASHINGTON: Doubts mounted on Tuesday over U.S. President Donald Trump's pick to fill a vacant seat at the Federal Reserve, with one Republican senator saying she was "very unlikely" to back economic commentator Stephen Moore and another calling his nomination "very problematic."The remarks, from U.S. Republican Senators Joni Ernst and Lindsey Graham, respectively, signaled growing resistance to Trump's bid to put a loyalist on the Fed's policy-setting panel after remarks denigrating women, made over nearly two decades of writing and commentating, were widely reported last week.Moore did not immediately reply to a voicemail and email from Reuters requesting comment. He has apologized in recent days for some of his past remarks about women, explaining that some were attempts at humor.Trump, who on Tuesday reiterated his call for a Fed interest rate cut, announced he would pick Moore for the Fed post just over a month ago, but has not formally nominated him."Very unlikely that I would … [Read more...] about Trump’s Fed pick Moore faces mounting lawmaker doubts