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Markets to Fed: Little chance of another rate hike this year

“Inflation is the missing ingredient that would put the Fed on a convincing path to raise interest rates” writes Patti Domm for cnbc.com. New York Fed President William Dudley said Thursday that inflation should pick up and that the Fed was still on track to raise interest rates.Stocks moved higher after the inflation report, though markets remain under pressure due to tensions between the U.S. and North Korea.The already skeptical markets now give the Federal Reserve just a 1-in-3 chance of hiking interest rates in December, after a fifth weak…

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Bank of England hike talk simmers down with concerns that inflation has peaked

“Governor Carney is known to be looking for more domestically generated inflation before fully buying into what look like robust CPI numbers” writes Yuri Gripas for cnbc.com. Meanwhile, doves – who believe in easy monetary policy and are more concerned on jobs – preached that inflation has peaked, and warned on sluggish growth rates amid a backdrop of volatile Brexit fueled politics.Yet at the beginning of the summer, divisions at the bank’s MPC’s (Monetary Policy Committee) were sharply exposed with a surprise 5-3 vote split on whether to raise interest…

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Wells Fargo will pay out $80 million to as many as 570,000 customers it wrongly charged for car loan insurance

“Wells Fargo said late Thursday it would pay back $80 million to customers wrongly charged for car loan insurance in the coming months, which included $64 million in cash and $16 million of account adjustments” reports businessinsider.com. Wells Fargo and Co said it would reimburse about $80 million to 570,000 customers who may have been charged wrongly due to issues related to auto collateral protection insurance (CPI) policies.About 490,000 customers had duplicate vehicle insurance coverage and about 60,000 customers did not receive complete disclosures from vendors, prior to CPI coverage,…

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Wells Fargo Broadsided Anew With an Auto Insurance Sales Scandal

“The document shows Wells Fargo stopped sharing in commissions from the insurance sales in February 2013, she wrote” writes Russell Ward for bloomberg.com. Wells Fargo & Co.’s campaign to rebuild customer and shareholder trust just hit another bump, as the bank said it may have pushed thousands of car buyers into loan defaults and repossessions by charging them for unwanted insurance. Source: bloomberg.com Share This:

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Markets News Regulators 

Fed will have to respond to weak inflation data as expectations fade for further hikes

“The Federal Reserve is on track to raise interest rates Wednesday, but surprisingly weak inflation for a third month puts another rate hike later this year in doubt and could change the central bank’s tone after its meeting” writes Patti Domm for cnbc.com. The Fed is expected to raise interest rates a quarter point Wednesday afternoon, and it was expected to sound somewhat hawkish in its statement even though the market doubts it can raise rates any further this year. Source: cnbc.com Share This:

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Consumer prices fell more than expected in May

“US consumer prices fell more than expected in May, according to the Department of Labor’s monthly consumer price index (CPI)” writes Akin Oyedele for businessinsider.com. Fed officials, however, are likely to view soft inflation as being transitory and point to the labor market’s gains.The gauge of consumer-price changes dropped by 0.1%, missing the forecast for a flat reading, and rose by 1.9% year-on-year (2.2% expected.) Excluding volatile food and energy costs, so-called core CPI  rose by 0.1% from April, and 1.7% from May 2016, both less than expected. Source: businessinsider.com Share This:

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Inflation falls again in May as CPI recedes from recent high-water mark

“Most economists predict just one more rate hike this year in the short-term fed funds rate if inflation remains contained” writes Jeffry Bartash for marketwatch.com. WASHINGTON (MarketWatch) — The cost of goods and services for American consumers fell in May for the second time in three months as inflation continued to recede from a recent high-water mark.After the inflation and retail sales data, yields on Treasurys dropped, with the 10-year TMUBMUSD10Y, -3.23%  sliding to 2.16%. Source: marketwatch.com Share This:

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