The personal consumption expenditures price index (PCE) increased 0.1% in June 2024 and was up 2.5% from a year ago, with the annual rate showing a slight decline from the prior month Core inflation, which excludes food and energy, showed a monthly increase of 0.2% and 2.6% on the year,Read More →
Gold prices climbed to $2,482 per ounce, hitting an all-time high. Gold prices continued to peak at new record highs Tuesday and Wednesday 15th and 16th July 2024. On Monday 15th July 2024, Powell reportedly said the Fed won’t wait for inflation to reach the central bank’s 2% target before it begins cutting,Read More →
Jerome Powell appears to be further paving the way for a rate cut at the next meeting in July 2024. Federal Reserve Chair Jerome Powell reportedly said Monday 15th July 2024 that the central bank will not wait until inflation hits 2% to cut interest rates. Powell referenced the idea that centralRead More →
Jerome Powell on Tuesday 9th July 2024 reportedly expressed concern that holding interest rates too high for too long could jeopardize economic growth. This comment came ahead of the consumer price index reading due this week. Preparing for a two-day session on Capitol Hill, the central bank chief stated thatRead More →
Federal Reserve Chair Jerome Powell has expressed satisfaction with the current progress in the inflation battle but indicated a desire for additional positive data before considering a reduction in interest rates. “We want to be more confident that inflation is moving sustainably down toward 2% before we start the processRead More →
The ‘Sahm Rule’ serves as a heuristic indicator employed by the Federal Reserve to ascertain the onset of a recession in the economy. The Sahm Rule is a real-time evaluation tool based on monthly unemployment data from the Bureau of Labor Statistics (BLS). Named after economist Claudia Sahm, it forecastsRead More →
The S&P 500 soared to a new high, surpassing 5400 for the first time on Wednesday 12 June 2024, following the Federal Reserve’s latest policy statement and the May 2024 inflation report, which suggested a softening of inflationary pressures. The S&P 500 index rose by 0.85%, closing at around 5421Read More →
The U.S. economy exceeded job growth expectations in May 2024, alleviating concerns of a labour market downturn but potentially diminishing the Federal Reserve’s motivation to cut interest rates. Non-farm payrolls surged by 272,000 for the month – a significant increase from April’s 165,000 and surpassing the consensus forecast of 190,000.Read More →
Bad economic news appears to have had an interesting impact on the stock market recently. Traditionally, negative economic data might be anticipated to result in falling stock prices; however, recent trends have diverged from this norm. News trend In the past two months, negative economic news has had a paradoxically positiveRead More →
The federal debt reportedly reached $34.5 trillion, marking an increase of approximately $11 trillion since March 2020. This surge has sparked discussions among government and financial leaders, with a notable Wall Street firm questioning whether the associated costs could threaten the stock market’s upward trend. The Congressional Budget Office projectsRead More →
All three major indices closed at records on 15th May 2024 The Dow climbed 0.88%, while the S&P 500 gained 1.17%, ending the session above 5,300 for the first time. The tech-related Nasdaq Composite closed higher by 1.40%. Dow closed at a new high of: 39908 S&P 500 closed at a new high of: 5308 Nasdaq CompositeRead More →
The decision comes as inflation, which measures price rises over a period of time, remains above the Bank’s 2% target at 3.2%. But bank says cuts are coming. Is the 2% target still a sensible benchmark? The 2% inflation target set by central banks has been a widely adopted benchmarkRead More →
The Fed have deliberated over ‘transitory’ inflation – (they got that wrong). They have teased us about when rates will be cut (still waiting). And now we are told no rate cut but: ‘the next rate move is unlikely to be up!’ Probably better to say and do nothing atRead More →
Inflation has become a persistent challenge for the Fed The battle against inflation persists, gradually impacting the U.S. economy and presenting substantial challenges for the Federal Reserve. Despite concerted efforts to control it, inflation remains stubbornly remains, leaving policymakers in a dilemma – to stimulate economic growth or to curbRead More →
Nvidia, manufacturer of one of the most advanced graphics processing units (GPUs), has significantly benefited from the artificial intelligence (AI) surge due to the high demand for its microchips. The company’s shares have fallen 10% from their recent all-time high, which was over $950. On Tuesday, 9th April 2024, theRead More →
The U.S. economy is on a rip, with employers adding around 303,000 jobs in March 2024 – the largest increase in almost a year. As the world’s largest economy continues to surge, questions arise about the Federal Reserve’s next move regarding interest rates. Stronger-than-expected Job Growth The unemployment rate fellRead More →
Federal Reserve Chairman Jerome Powell stated on Wednesday 3rd April 2024 that policymakers will need time to assess the current inflation situation, leaving the schedule for potential interest rate reductions unclear. Referring to the stronger-than-anticipated price pressures at the year’s onset, Powell reportedly stated that he and his colleagues areRead More →
The Fed in March 2024, indicated for the markets to expect three interest rate cuts by the end of 2024 – but what if this didn’t happen? The Federal Reserve’s decision to maintain interest rates in 2024 could have significant implications for the U.S. economy. Fed cred – credibility wouldRead More →
Federal Reserve Chair Jerome Powell said in a U.S. TV interview on Sunday 4th January 2024 that the central bank will proceed carefully with interest rate cuts this year and likely will move at a considerably slower pace than the market expects. Election year rate cuts? In the interview andRead More →
The Federal Open Market Committee (FOMC) held interest rates steady and indicated a willingness stop raising interest rates. But a cut anytime soon is unlikely until inflation is brought fully under control and nearer to the Fed’s 2% inflation target. The Federal Reserve sent a signal that it is finishedRead More →
Federal Reserve officials in December concluded that interest rate cuts are likely in 2024, though they appeared to provide little in the way of when that might occur, according to minutes from the meeting released Wednesday 3rd January 2024. FOMC meeting minutes The rate-setting Federal Open Market Committee (FOMC) agreed to keepRead More →
The 10-year Treasury yield slipped further on Monday 18th December 2023, as the final full trading week of 2023 gets underway. Traders are attempting to digest the ‘dovish’ tone of the U.S. Federal Reserve. The central bank held its key interest rate at 5.5% and revealed that policymakers were pencilling in at leastRead More →
The Dow Jones Industrial Average (DJIA) hit a new all-time high, on 13th December 2023. It closed at 36799 surpassing its previous record of 36585points that it had set on 4th January 2022. This was the fourth consecutive record close for the index. Record high The Dow’s record high was driven primarily by theRead More →
Fed holds U.S. rates at 5.5%, indicates three cuts coming in 2024 The Federal Reserve on Wednesday 13th December 2023 held its key interest rate steady for the third time in a row and set the scene for multiple rate cuts in 2024 and 2025. With inflation easing and theRead More →
Prices across a wide spectrum of goods and services moved slightly higher in November 2023 but were mostly in line with expectations, thus further easing pressure on the Federal Reserve. The consumer price index, a closely watched inflation gauge, increased 0.1% in November, and was up 3.1% from a yearRead More →
Gold prices on Monday 27th November 2023 climbed to a more than six-month high as the U.S. dollar weakened. Investors, it is reported, have placed their bets, suggesting the Federal Reserve is finished with interest rate hikes. Gold was up around 0.52% at $2,012 per ounce in early afternoon trading (LondonRead More →