The stock market is not out of the woods
Federal Reserve officials raised their economic outlook in January but remained skeptical that wage growth will rise faster than expected, according to minutes from the central bank's latest policy meeting.
However, investors have grown concerned that signs of rising wage and inflation pressures might prompt it to speed up the rate hikes.
Even with an unemployment rate of 4.1 percent, "Nonetheless, wage growth has been moderate, likely held down in part by the weak pace of productivity growth in recent years".
Embracing higher inflation, however, could cause political problems for the Fed.
The report, by using the same Fed forecasts released in December, stated that Fed officials expect three interest rate hikes this year.
FILE PHOTO: Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., February 6, 2018. It's important to note, however, that the Fed convened before new economic data suggesting a possible pickup in inflation.
NRA rips corporate sponsors that cut ties: Shameful display of cowardice
Members of the NRA have access to special offers from partner companies on its website, ranging from life insurance to wine clubs. The latest companies to end their ties with the NRA were Delta and United Airlines , two of the three largest US -based airlines.
Marit Bjoergen of Norway wins women's 30-km mass start gold
Norway's Marit Bjørgen produced a dominant performance to claim the final gold medal of the 2018 PyeongChang games. Parmakoski finished 1 minute, 49.5 seconds behind Bjorgen and Nilsson, 1 minute, 58.9 seconds.
TL;DR: Taylor, Santner drive New Zealand home in series opener
England have not yet named the playing XI for the first ODI , but skipper Eoin Morgan has hinted that Stokes will be seen playing. Mitchell Santner also provide a good supporting role. "Taking it towards the end we just didn't have enough in the tank".
At the December meeting, Fed officials signaled that they expected to raise rates another three times in 2018. The dollar index rose 0.16 percent, with the euro down 0.29 percent to $1.2293. Yet five years of below-target inflation, combined with an aging population and slowdown in labor force growth, has sparked a debate over ditching a longstanding 2-per cent price target.
In anticipation of higher interest rates, investors have sold off government debt.
As reported by CNBC, the paper argues that "the consensus view that the Fed's quantitative easing lowered 10-year Treasury yields by 1 percentage point (100 basis points) was overstated, and that Fed asset purchases did not have as much impact on long Treasury yields as generally believed". "In general, valuations are higher than would be expected based exclusively on the current level of longer-term Treasury yields".
But the spotlight will be on the new Fed chair next week when he faces questions from both houses of the U.S. Congress in semi-annual testimony starting on Tuesday, and his audience will include investors who unceremoniously greeted his early tenure with one of the fastest 10.0 per cent falls in Wall Street stocks in history earlier this month. During his confirmation hearing in front of a Senate committee, Powell indicated that he would back the gradual rate hikes spearheaded by Yellen. Starved for yield in recent years, investors were forced into the stock market, driving up equity valuations, thanks to the Fed's policies.
Over time Mr. Powell's speeches have come to emphasize how the long spell of loose US monetary policy has given the labor market time to recover, allowing the unemployment rate to fall from a high of 10 per cent in 2009 to a 17-year low of 4.1 per cent in January this year. "Everyone assumes that Powell is Yellen 2.0".
His words come as U.S. jobless claims have dropped to just above their 45-year-low, and the solid manufacturing and consumer sectors suggest that inflation is set to gain momentum.
Recommended News
-
25 February 2018
Turkey seeks extradition of PYD/PKK's former co-leader
Ankara sees the PYD as an extension of the outlawed Kurdish PKK , which has waged a three-decade insurgency on Turkish soil. Muslim was the co-chair of the PYD party, the major component of the coalition that runs autonomous parts of north Syria.
25 February 2018Huawei MateBook X Pro With FullView TouchScreen Display Unveiled at MWC 2018
Huawei has added a One-Touch Power button to the new MateBook as it comes with a fingerprint scanner embedded into it. If all goes to plan, you should be able to get your hands on one in the United Kingdom and Western Europe in March.Raina shines as India claim Twenty20 series against South Africa
He got rid of Rohit with a top-class delivery that came in and trapped him plumb in front of the wickets . I just looked to enjoy myself and express my shots. "You need to show intent in the first six overs". -
25 February 2018Arsene Wenger speaks ahead of Carabao Cup Final
Welbeck could also be key because of his pace and physical strength that could allow him to bully the Manchester City defence . Finals are always exciting and tense games". "What I try to say to the players is try to play more like a friendly game".
25 February 2018Germany slides into position to grab more gold
We did it in the two-man and the four-man and also the girls' gold, which wasn't expected", said Friedrich. We have our team and a lot of sponsors, everyone worked as a team so that we could get this result.
25 February 2018Thousand march in rival rallies across Italy
On Thursday, several police officers were injured in clashes between far-left and far-right protesters in Turin. Prime Minister Paolo Gentiloni and former prime minister Matteo Renzi also took part in the demonstrations. -
25 February 2018United v Chelsea: The teams
Conte said last summer that selling the player was a "big loss" for the champions. "Even so, we want to win tomorrow.". Now Matic, unfortunately, is playing for Manchester United .
25 February 2018Chelsea boss Antonio Conte has win over Man Utd in his sights
Conte was seen stood emotionless on the side, watching his side dismantled by Javi Gracia's men, something that has been a regular occurrence for Chelsea this season as they fail to defend their Premier League title.Dollar Tree, Inc. (NASDAQ:DLTR) Holdings Trimmed by MAI Capital Management
Harkey decreased its stake in Bridgepoint Ed Inc (Call) (BPI) by 60.53% based on its latest 2017Q3 regulatory filing with the SEC. Accern identifies positive and negative press coverage by reviewing more than 20 million news and blog sources in real time. -
25 February 2018Crystal Palace 0-1 Tottenham player ratings: Spurs stars rated and slated
Palace, meanwhile, struggled in the final third of the field and looked out of ideas without the injured Wilfried Zaha. Crystal Palace manager Roy Hodgson defended Dele Alli , dismissing suggestions the Tottenham midfielder dives.Coastline Trust Co Has $498000 Stake in Starbucks Co. (SBUX)
Glenn Fuhrman increased its stake in Dineequity Inc (DIN) by 5.66% based on its latest 2017Q3 regulatory filing with the SEC. After $0.66 actual EPS reported by Sysco Corporation for the previous quarter, Wall Street now forecasts 0.00% EPS growth.
25 February 2018Kat: Rain moving out; few showers remaining Sunday
The rain will start around 6:00pm but the heavy rain and possible thunderstorms won't happen until later in the evening. It will be near enough to us through Monday , allowing for rain to continue through at least the morning hours.
