News Regulators 

Atlanta Fed president: Great Recession caused people to distrust long-term investments

“Atlanta Fed President Raphael Bostic said Wednesday the Great Recession caused people to distrust long-term investments” writes Berkeley Lovelace Jr for cnbc.com. Bostic also said he wouldn’t “anchor” on the Trump administration’s target of 3 percent GDP growth.”There is a psychology going on here, where the Great Recession was so deep and it scarred people so significantly that they are reluctant to trust in long-term investments,” Bostic said in a wide-ranging interview on CNBC’s “Squawk Box.”. Trump pledged to drive U.S. economic growth above 3 percent through tax reform, deregulation…

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Some Fed members say bank can be ‘patient’ on interest rates due to low inflation

“The Fed appears less settled on the timing of its next increase in interest rates” writes Jeffry Bartash for marketwatch.com. The bank had signaled it would raise its benchmark fed funds rate one more time this year, but a surprising slowdown in inflation has forced officials to reconsider their next step. “Some”Fed officials said the bank could ‘afford to be patient” before raising interest rates again.WASHINGTON (MarketWatch) — Senior Federal Reserve officials engaged in deep debate in July about the path of U.S. inflation after a spate of surprisingly low…

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Fed eyes September debt drawdown; some want ‘patient’ on rates

“The Fed also engaged in a deep debate over surprisingly low inflation readings, with some saying the bank could ‘afford to be patient” before raising interest rates again” writes Jeffry Bartash for marketwatch.com. The Fed’s staff in July slightly reduced its 2017 forecast for inflation, as many senior officials saw a greater likelihood that “inflation might remain below 2% for longer than they currently expected.”. The Fed had been on track to raise rates one more time this year, but now a majority of Wall Street investors believe the bank…

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Fed’s Fischer calls Trump-led rollback of Wall Street regulations ‘mind-boggling’

“They argue that stiffer regulations have unnecessarily burdened banks, crimped lending and would do little to avert a future crisis” writes Jeffry Bartash for marketwatch.com. In a separate interview on CNBC, Atlanta Federal Reserve President Raphael Bostic said he doesn’t expect the U.S. to achieve the White House goal of 3% growth. Source: marketwatch.com Share This:

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Gary Cohn would be a ‘reasonable’ candidate for Fed chairman, key official says

“They’ve been very respectful of the monetary policy, not to politicize the monetary policy process,” he said” writes Joseph Lawler for washingtonexaminer.com. As a permanent member of the Fed’s monetary policy committee, Dudley would work with Cohn if he were to be appointed. Source: washingtonexaminer.com Share This:

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Fed’s Dudley wants to keep raising interest rates slowly

“New York Fed President William Dudley said Monday that he is in favor of continuing to slowly raise short-term interest rates even with inflation below the central bank’s 2% target” writes Senior Economics Reporter for marketwatch.com. In an interview with the Associated Press, Dudley listed two reasons to continue to raise short-term rates, saying financial conditions have eased even though the Fed has been tightening and the current level of short term rates is “pretty low.”.  Source: marketwatch.com Share This:

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Markets News Regulators 

Skepticism Mounts About the Next Fed Rate Hike

“The market is once again second-guessing whether the Federal Reserve can lift rates again this year” writes Ben Eisen for wsj.com. The yield on the two-year Treasury note, which tends to rise alongside expectations for interest rate increases, fell to 1.29% from its early-July level of 1.41%, the highest since 2008. In the fed funds futures market, where traders wager […].  Source: wsj.com Share This:

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Markets News Regulators Stocks 

Stocks rise for the first time in 4 days after tame inflation data

“U.S. equities edged higher Friday as weak inflation data encouraged investors that the Federal Reserve will keep monetary policy lower for longer” writes Brendan Mcdermid for cnbc.com. “I’m not sure that the market believes that the Fed won’t do anything to the balance sheet.”. “Because the numbers came in lower, the market saw that as an indication that the Fed won’t raise rates in September,” said Robert Pavlik, chief market strategist at Boston Private. Source: cnbc.com Share This:

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Worrying about the bond-market bubble is ‘old guy’ thinking

“With the Federal Reserve now beginning to increase rates again, those memories are coming flooding back to the bond market” writes Chief Of Operations for cnbc.com. The average bond market pundit either lived through the 1970’s and 1980’s, when interest rates spiked to unprecedented levels, or was mentored by folks who did. Source: cnbc.com Share This:

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