News 

Retail Forex transactions once again at the heart of FX benchmark rate fixing case

“In brief, the plaintiffs want the term to include debit, credit and ATM foreign currency transactions” reports financefeeds.com. They accept the benchmark exchange rates that Defendants manipulated and add on a small handling fee, the plaintiffs say.Importantly, on the credit, debit and ATM cards issued by the defendant banks, Visa and MasterCard accept the spot benchmark exchange rates that the banks allegedly manipulated and do not make independent determinations.By including the FX benchmark exchange rates that the banks allegedly manipulated as the primary component in foreign currency conversions on the…

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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…

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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:

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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…

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News Regulators Stocks 

Stocks aren’t ignoring Trump’s Fed, EU, and China comments. Wall Street’s just watching the dollar get crushed

“As measured by the ICE U.S. Dollar Index DXY, -0.59% the dollar is down 0.6% at 94.620, on track for its worst one-day decline this month” writes Mark Decambre for marketwatch.com. U.S. stocks were edging higher late-morning Friday, seemingly ignoring recent comments from President Donald Trump, who questioned the strategy of the the Federal Reserve and monetary policies of the European Union and China.Futures for all three benchmarks indicated that stocks would face stiffer headwinds at the open of regular trade.However, a weaker dollar, which can benefit large, multinational companies…

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News Regulators 

Trump did a bunch of stuff to strengthen the dollar; now he’s upset about the strengthening dollar

“And yet, both his tax cuts and trade war are contributing to these dynamics” writes Jared Bernstein for washingtonpost.com. He’s annoyed that the Fed is raising rates and that the stronger dollar is making our exports less competitive. Whine as you might, you can’t have a “great economy” closing in on full employment, an independent Fed, a big tax cut, a trade war — and a falling dollar.The figure below, an index of the value of the dollar against a basket of foreign currencies, shows the dollar beginning its most…

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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 

White House: Trump is not interfering with Fed policy decisions

“The White House clarified statements made by President Donald Trump to CNBC about the Federal Reserve and its decision to raise interest rates this year” writes Fred Imbert for cnbc.com. As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions. … Source: cnbc.com Share This:

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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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