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Why the Fed is going slow and McDonald’s is substituting computers for cashiers

“Baird: The jury is still out on how much of a near-term boost the tax cuts will provide” writes Jeffry Bartash for marketwatch.com. Is there any reason to expect consumers to alter their behavior even after the recent tax cuts?. Some people will choose to save their tax cuts.MarketWatch: The recent tax cuts include large reductions for businesses meant to encourage new investment. Source: marketwatch.com Share This:

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U.S. stock futures look hemmed in as North Korea gloom offsets dovish Fed

“U.S. stock futures mostly showed little change early Thursday, as worries about North Korea appeared to offset a Federal Reserve release that was viewed as dovish” writes Markets Reporter for marketwatch.com. Nasdaq-100 futures NQM8, +0.15% showed a little more life, rising by 14 points, or 0.2%, to 6,971. Source: marketwatch.com Share This:

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Trade disputes were a big topic at the most recent Federal Reserve meeting, with Fed officials from all over the country saying that business contacts were worried about them.

“The next monetary policy meeting is in mid-June” writes Ap Photo Andrew for washingtonexaminer.com. Investors have been speculating that the central bank might pursue tighter monetary policy, speeding up interest rate hikes, because of signs that commerce is accelerating.Before Wednesday, the Fed hadn’t definitively signaled whether the recent changes in the economy would alter its plans for monetary policy over the next year or so. Source: washingtonexaminer.com Share This:

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Five things that could move the markets in the Fed’s minutes release today

“That may not sound very exciting on the surface, but market participants will be poring through the Federal Open Market Committee meeting summary for clues about where the central bank is heading” writes Jeff Cox for cnbc.com. However, Guha said incoming committee members could take a more dovish policy view, setting up possible conflicts ahead. 5.If the minutes indicate that the neutral rate is close, the market will see that as dovish.Krishna Guha, head of global policy and central bank strategy at Evercore ISI, offers a helpful guide on what…

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Fed’s Kashkari warns colleagues ‘not to overdo it’ with interest-rate hikes

“Minneapolis Fed President Neel Kashkari said Monday he was worried the central bank might get too aggressive with interest-rate hikes and push the economy into recession” writes Senior Economics Reporter for marketwatch.com. The Minneapolis Fed president said he would be watching the yield curve closely.An inversion of the yield curve was the “very best predictor of recession,” he said.Kashkari is one of two regional bank presidents urging caution on further rate hikes. Source: marketwatch.com Share This:

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The Fed is an open book, but foreign trade and security are the wild cards

“Anybody capable of reading the Fed’s balance sheet can get an instant fix on what the American monetary authorities are up to” writes Adam Jeffery for cnbc.com. The difficulty here is that the Fed, and the Fed observers, must operate with expected — i.e., short-term forecast — values of these two policy variables.There is no need to bother with “forward guidance” — a bunch of confusing and contradictory statements serving as betting fodder for in-out trades and the Fed’s trail covers between bi-weekly reserves reporting periods. Source: cnbc.com Share This:

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Dollar gauge on track to extend win streak to 5 days, as euro softens on Italian angst

“Check out: How much the weak dollar lifted Q1 earnings for multinationals: Ameriprise The WSJ Dollar Index BUXX, +0.10% which tracks 16 monetary units against the greenback, was up 0.1% to 87.12” writes Mark Decambre for marketwatch.com. However, sterling lost some ground against the euro EURGBP, +0.0802% with the euro buying £0.8740, compared with £0.8728 in the previous session.The index, which measures the buck versus a half-dozen key rivals, is heavily weighted against the euro, 57.6%.Against the Japanese yen USDJPY, +0.15% the dollar extended its gains, buying ¥111.03, from ¥110.77…

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Fed should create a financial stability report, Mester says

“The Federal Reserve should publish a financial stability report to highlight the central bank’s assessment of financial system vulnerabilities, said Cleveland Fed President Loretta Mester, on Friday” writes Senior Economics Reporter for marketwatch.com. The report, similar to publications of the central banks in Canada and Sweden, would help the Fed explain to the public its assessment of potential asset bubbles and what steps might be considered to counter the stability risks, Mester said, in a speech at a European Central Bank conference in Frankfurt.The Fed was still “a distance away”…

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Fed is ‘one decision away’ from hammering Treasurys, says bond fund manager

“Investors in U.S. government bonds could face serious pain if the Federal Reserve tries to steepen the so-called yield curve” writes Sunny Oh for marketwatch.com. Holman acknowledges investors may be still tempted to invest in Treasurys amid the growing late-cycle concerns reflected in the flatter yield curve.Atlanta Fed President Raphael Bostic even went so far as to say on Wednesday that it was his “job” to avoid a yield curve inversion.Strategists at bond fund manager Pimco also say U.S. government bonds remain a port of call when economic growth does…

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