Tag: US Federal Reserve (Fed), the US central bank

Capital Economics says the Fed may cut rates much more than expected, and the stock bubble looks far from the levels of 1929 and 2000.

Friday's jobs report finally arrived, putting a test on a stock market that struggled early in the second quarter.

Jerome Powell wants the numbers, Jerome Powell will get them. Federal Reserve matron Jerome Powell continued to play a familiar tune on Wednesday. "In his keynote address at Stanford University, he said: "Given the strength of the economy and the progress of inflation so far, we have time to let the coming data guide our policy decisions.

It is expected that Federal Reserve Chairman Simmons Bauer and other central bankers will comment on the path of rate cuts in 2024.

Walt Disney Co. (DIS)'s...

Wall Street is bracing for possible stress in the currency markets by putting some cash aside ahead of the U.S. tax season, when large tax-related outflows could hurt market liquidity. The tax season culminates on April 15, when individuals file their income tax returns with the U.S. federal government, which typically leads to a drop in financial sector liquidity as individuals withdraw cash from bank deposits and money market funds to pay their taxes. Liquidity, as measured by the Federal Reserve's bank reserves and the Fed's overnight Riposte Ratio (RRP), the favored cash depository for money market funds, is still considered ample, but analysts say the high capital gains from last year's stock market boom could make this year's outflows particularly significant, which could lead to a spike in short-term interest rates.

Stocks faced a third straight session of losses on Wednesday as traders reset expectations for a Fed rate cut.

With Federal Reserve Chairman Jerome Powell set to speak soon, markets are skeptical that the central bank will begin easing as early as June. Money market traders disagree with the Fed and most analysts on the timing of the first rate cut of the year and the easing model. At the same time, they also lowered the expected three rate cuts in 2024, but with continued inflation and strong economic data, the Fed itself may slowly accept this view.

Steve Eisman, a prominent "big short" investor, says recent data provides no reason to cut rates now.

(Bloomberg) -- Asian stocks are set to follow Wall Street lower after solid economic data and a rebound in commodities fueled speculation that major central banks will keep interest rates higher for a longer period of time: Tesla Sales Hit Record High, Electric Cars Hit Hard Iran Vows to Punish Israel Strikes