News Stocks 

Stocks end slightly lower as traders shrug off trade talk

“That helped banks because bond yields are used to set interest rates on many kinds of loans including mortgages” writes Marley Jay for seattletimes.com. Stocks wobbled all week as investors reacted to solid company results as well as heightened trade tensions.NEW YORK (AP) — U.S. stocks inched lower Friday as bond yields jumped, a shift that helped banks but hurt companies that pay big dividends.Companies including Microsoft and Honeywell rose as investors were pleased with their quarterly reports, but General Electric stumbled.Investors have worried that the trade war and other…

Read More
News Regulators 

An ugly economic lesson from the Nixon era proves why Trump’s criticisms of the Fed are so worrying

“The released Nixon tapes revealed numerous conversations between the president and Burns in which Nixon pressures the Fed chair to keep rates low” writes Bob Bryan for businessinsider.com. Nixon pressured the new Fed chairman to keep interest rates low to help maintain lower unemployment. “While inflation expectations are currently well anchored, history shows us that a pervasive lack of central bank independence can rapidly, and without warning, lead to rising inflation and economic instability.”.  Source: businessinsider.com Share This:

Read More
News 

Trump threatens to hit all $505bn of Chinese imports with tariffs

“Interest rates are seen as the domain of the central bank, while the currency is regarded as the responsibility of US treasury officials” writes unknown author for theguardian.com. The president’s latest interest rate and dollar-focused comments came a day after he first criticized the Fed’s series of rate increases.In a further breach of established protocol, Trump redoubled his recent criticism of the Federal Reserve’s decision to steadily raise interest rates this year.The Fed has raised interest rates five times since Trump took office, with two of those coming this year…

Read More
News Regulators 

Trump amps up criticism of Fed interest rate rises

“WASHINGTON, July 20 (Reuters) – U.S. President Donald Trump on Friday dug in on his criticism of the Federal Reserve’s policy on raising interest rates, saying it takes away from the United States’ “big competitive edge,” and lamented the strength of the U.S. dollar” writes Aol Staff for aol.com. Trump had already criticized the Fed’s interest rate policy in an interview on CNBC on Thursday, saying he was concerned higher rates could impact the U.S. economy.RELATED: 13 US housing markets that would be most affected by rising interest rates Representatives for…

Read More
Markets News 

Gold slips for sixth session as dollar firms

“Gold eased for a sixth straight session on Friday, having slipped to a one-year low in the previous session, as the U.S. dollar firmed” writes unknown author for cnbc.com. Spot gold was down 0.2 percent at $1,219.28 an ounce at 0127 GMT. In the previous session, it fell to its weakest since early July last year at $1,211.08 an ounce.The dollar index, which measures the greenback against a basket of six major currencies, was 0.1 percent higher at 95.129.Fed Chairman Jerome Powell in a two-day congressional testimony said he believed…

Read More
News 

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…

Read More
News Regulators 

Trump’s stunning comments about the Federal Reserve could actually backfire

“But JPMorgan economist Michael Feroli advanced an interesting alternate theory: Trump’s comments may inspire the Fed to go the other direction” writes Bob Bryan for businessinsider.com. “Even if the remaining nominee were a ‘like-minded low interest rate guy,’ that person would be but one out of a Committee of 12.”.  Source: businessinsider.com Share This:

Read More
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…

Read More
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…

Read More
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:

Read More