Publicado: Vie, Julio 12, 2019
Financiera | Por Marilu Caballero

Many Fed officials saw stronger case for rate cut last month

Many Fed officials saw stronger case for rate cut last month

In addition, inflation has dipped further below the Fed's annual target level.

At 6:52 a.m. ET, Dow e-minis 1YMcv1 were up 58 points, or 0.22%.

Markets immediately moved to price-in a 30 per cent chance of a 50 basis-point rate cut at the end of July.

As he delivered the Fed's semi-annual monetary report to Congress Wednesday, Powell signaled the central bank might cut interest rates for the first time in almost a decade.

Brushing off criticism from President Trump, Powell hinted there may be scope for an imminent cut to U.S. interest rates when he addressed the House of Representatives Financial Services Committee.

Mr Trump is making the strong economy a centrepiece of his reelection campaign and he wants the Fed to help boost growth ahead of the 2020 election.

Despite the now low United States unemployment rate, he said inflation remains "muted" and wage growth is modest.

The congresswoman, a relentless Trump critic, also stated that "the president doesn't have the authority to fire [Powell], and should he be asked to go he's not going anywhere", she said. "And what I've said is the law clearly gives me a four-year term, and I intend to serve it". Traders will be eyeing European Central Bank minutes and Powell's testimony before the Senate Banking Committee on Thursday for further clues.

I take care of my health, says Merkel after several shaking episodes
Merkel began shaking involuntarily as national anthems were being played at the reception of Finnish Prime Minister Antti Rinne. Asked about turning 65 next week, she said: "You're not getting any younger - but perhaps more experienced".

Powell began two days of testimony on Wednesday at a time when the economic picture seems mixed: The U.S. job market appears resilient. This followed dimmed hopes over a Fed rate cut in the U.S. In mainland China, shares fell with benchmark Shanghai Composite down 0.18 percent.

Some businesses, particularly in manufacturing, have pulled back on spending and hiring because of greater uncertainty about US trade disputes, Fed officials said, according to minutes of the June 18-19 meeting released Wednesday.

"Concerns about the strength of the global economy continue to weigh on the USA outlook", Mr Powell said.

On the other hand, he noted that business investment has slowed "notably", and that there was uncertainty over trade and global growth.

In the first day of closely watched congressional testimony, Jerome Powell said the case for lower borrowing costs "had strengthened" owing to headwinds caused by global trade uncertainty. Some characterized a likely rate cut late this month as an "insurance policy" against an economic downturn.

"The Fed has pretty much made it clear that the negatives of a cooling economy and ongoing trade tensions outweigh the positives of a Goldilocks inflation number and last week's solid jobs read".

Though the USA government reported strong job growth for June, other major economies' "data have continued to disappoint".

Stock futures were calling major indices to start the session higher after Federal Reserve chairman Jerome Powell suggested the day before that the central bank was open to easing monetary policy in the near future. Trump's attacks have raised alarms that he is undermining the Fed's long-recognized independence from political pressure.

Me gusta esto: