News 

Japan May all industry activity index +0.1% vs 0.0% m/m expected

“The data is often referred to as the monthly GDP reading, it’s a tracker production across all sectors of the Japanese economy and follows the GDP growth figures/trend” reports forexlive.com. Still not an encouraging sign that the Japanese economy is on solid ground right now in 2018. A minor data point though. Source: forexlive.com Share This:

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STANLEY DRUCKENMILLER: It’s time to give real capitalism a chance

“For years now a mix of financial repression and central bank intervention has made long-term interest rates largely determined by government fiat” writes Simon Black for businessinsider.com. Now, the irony of this is over the last 700 years inflation has averaged barely over 1% and interest rates have averaged just under 6%.But there’s a link to the full speech at the bottom: Can we try capitalism?. But, after he was elected, I was at least hopeful that it would represent an inflection point in the trend away from capitalism. Source: businessinsider.com…

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News Regulators 

Trump Takes a Rare Presidential Swipe at the Fed

“If the Fed raises rates too quickly, it risks slowing growth at a time when wages have stagnated for most American workers, after accounting for inflation” reports nytimes.com. Historically, presidents have preferred lower rates, because faster economic growth typically helps incumbents win re-election.But if it raises rates too slowly, some Fed officials fear the economy could “overheat” and ignite a rapid spiral of price increases that could eventually prompt a recession.But as the economy finally gains steam after years of sluggish growth in the wake of the Great Recession, the…

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News Regulators 

Trump lays into the Fed, says he’s ‘not thrilled’ about interest rate hikes

“Presidents rarely intercede when it comes to the Fed, which sets the benchmark interest rate that flows through to many types of consumer debt” writes Jeff Cox for cnbc.com. Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.Former Dallas Fed President Richard Fisher told CNBC that Trump is out of line. “One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve.ET on “Squawk Box.” “Because we go up…

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News Regulators 

Trump’s Fed criticism is nearly without precedent in US history

“President Donald Trump’s move to criticize the Federal Reserve is almost without precedent in a nation that places a high priority on the independence of monetary policy” writes unknown author for cnbc.com. Almost all of Trump’s predecessors steered clear of Fed critiques in the interest of making sure that interest rates were set to whatever was best for the economy and not to boost anyone’s political fortunes.Concerns about too much liquidity in the economy were “just bulls—,” the president added. That in turn pushed the economy into recession but also…

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News Regulators 

Trump criticizes Federal Reserve, breaking long-standing practice

“Despite nearly a decade of unusually low interest rates, and other extraordinary Fed action, inflation has remained tame” writes David Lynch for washingtonpost.com. Republicans have for years criticized the Fed for keeping interest rates too low, which they said would lead to runaway inflation.Trump’s desire to keep rates low is a major change in GOP thinking on the Fed.By adding fuel to an economy that already was at full employment, Trump has contributed to the situation he is criticizing. Source: washingtonpost.com Share This:

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News Regulators 

President lays into Fed; ‘Not thrilled’ with rate hikes…

“Presidents rarely intercede when it comes to the Fed, which sets the benchmark interest rate that flows through to many types of consumer debt” writes Jeff Cox for cnbc.com. Former Dallas Fed President Richard Fisher told CNBC that Trump is out of line. “One of the hallmarks of our great American economy is preserving the independence of the Federal Reserve.Fed officials, including Chairman Jerome Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.In a stinging and historically rare criticism, President…

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Markets News 

Biggest threat to markets and economy is a Democrat win in November, Trump advisor Hassett says

“I could think of a lot of bad things that could hurt markets,” Hassett told CNBC’s Joe Kernan during a “Squawk Box” interview” writes Jeff Cox for cnbc.com. The main thing that could derail markets and the economy would be a Democrat takeover of Congress, White House economic advisor Kevin Hassett said Thursday. Source: cnbc.com Share This:

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EU’s Moscovici warns of hit to markets if trade tensions escalate

“BERLIN (Reuters) – A further escalation in trade policy tensions between the European Union and the United States would hit financial markets and hurt both sides, said European Commissioner for Economic and Financial Affairs Pierre Moscovici” writes Midwest Communications Inc for 95kqds.com. “An escalation – no matter from which side – would have serious consequences for the economy, including for the financial markets, which would hurt all sides,” Moscovici told the Augsburger Allgemeine newspaper in an interview.”That’s why we need a gateway to get out of this spiral that ultimately…

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News Oil 

Asian shares higher on U.S. earnings but trade worries rattle offshore yuan

“TOKYO (Reuters) – Asian shares made early gains on Thursday as upbeat Wall Street earnings supported global investor sentiment, although trade war jitters pushed China’s offshore yuan to a fresh one-year low” writes Midwest Communications Inc for 95kqds.com. “Trade war fears are something that won’t go away overnight.On the foreign exchange market, the trade war fears between the United States and China kept the offshore yuan to 6.7650 per dollar, to hit its lowest level since July, 2017.Against the Japanese yen, the dollar hit a 6-1/2 month high of 113.140…

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