News Regulators 

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 says 2% inflation target will remain elusive even if price pressures pick up

“The outlook for inflation seems to be the critical factor in assessing whether the Fed will continue to gradually raise interest rates” writes Senior Economics Reporter for marketwatch.com. He said he wanted the central bank to hold interest rates steady.Louis Fed President James Bullard said this week he did not expect inflation would accelerate.Dudley predicted the tight labor market combined with the weaker dollar should begin to foster upward inflation pressure soon.See: Here’s what Chicago Fed President thinks about the economy and interest rates And, St. Source: marketwatch.com Share This:

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Janet Yellen is getting the wrong message from a stubborn soft spot in the job market

“But black and Hispanic participation have shown distinct gains over the last couple of years, as the labour market tightened further” writes Pedro Nicolaci Da for businessinsider.com.au. However, a recent rise in the participation rates of black and Hispanic workers, who are disproportionately hurt during economic downturns, suggests Fed officials are wrong.Published in 2014, it claimed that “much — but not all — of the decline in the labour force participation rate since 2007 is structural in nature.A shrunken US workforce, now close to its smallest size since the 1970s,…

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Markets News Regulators Stocks 

The markets are virtually risk-free

“I expect to see the stock market a good deal higher within a few months.’ This was said on Oct. 17, 1929, a few weeks before the Great Crash, by Dr” writes Avi Gilburt for businessinsider.com. One of the key factors in signaling a major market top is the expectation by the masses that one cannot happen.For those that know their stock market history, you would know that those ‘in the know’ were absolutely certain about the impossibility of a market crash right before the market crashed and lead us…

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Markets News Regulators 

Dollar struggles at 13-month low as Fed flags sluggish inflation

“The Aussie traded hands at 80.14 U.S. cents in early New York trade Thursday” writes Markets Reporter for marketwatch.com. The dollar turned broadly lower during Wednesday’s session as the Fed, led by Chairwoman Janet Yellen, was seen as striking a cautious note on inflation.A widely watched U.S. dollar gauge languished at a 13-month low Thursday, struggling to shake off the dovish interpretation among investors of the Federal Reserve’s policy statement. Source: marketwatch.com Share This:

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Fed will likely focus on low inflation but leave rates alone

“Low inflation will likely be a key discussion point when the Fed holds its latest policy meeting this week” writes The Associated Press for seattletimes.com. He said he foresees three additional Fed rate increases next year.And unless inflation picks up, some analysts foresee no further rate increase this year.But investors have themselves grown more uncertain, with the CME Group’s closely watched gauge foreseeing a 47 percent chance of another rate increase by year’s end. Source: seattletimes.com Share This:

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U.S. Inflation Remains Low, and That’s a Problem

“Employers, for example, can cut costs by holding wage increases below the inflation rate” writes Binyamin Appelbaum for nytimes.com. Fed officials began the year expressing confidence that inflation was finally rebounding as the economy continued to expand.Once again, as it was in the days of high inflation, public expectations might be determining the level of inflation, some economists think.Most Fed officials, however, continue to predict that inflation is around the corner.Job growth remains strong, but recent reports on cautious consumer spending and business investment suggest that overall growth remains tepid. Source:…

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Fed preview: transitory or not transitory? This is the question

“This is the main question that markets will want to hear an answer to in the upcoming Fed decision on July 26th” writes Yohay’s Google Profile for forexcrunch.com. Since then, inflation data remain low and also wages, a driver of core inflation, haven’t risen too much.The reaction to the Fed decision is multi-faceted.So, the big question remains: is low inflation still transitory?.  Source: forexcrunch.com Share This:

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BlackRock bond guru sees low rates for longer no matter who becomes the next Fed chair

“On Thursday, Mario Draghi, president of the European Central Bank, said the ECB will hold its rates steady” writes Berkeley Lovelace Jr for cnbc.com. Interest rates are likely to stay low no matter who succeeds Janet Yellen as Federal Reserve chair, BlackRock’s Rick Rieder told CNBC on Thursday.The Fed, in its June minutes, reiterated its federal funds rate forecast of 1.4 percent by the end of 2017. Source: cnbc.com Share This:

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It’s unclear whether tax policy will impact business investment, says billionaire Steve Ballmer

“Billionaire Steve Ballmer said Friday that government data show it’s not clear whether tax policy will have an impact on business investment” writes Berkeley Lovelace Jr for cnbc.com. “No matter what tax policy we’ve seen, it more or less increases linearly over time. On Thursday, Federal Reserve Chair Janet Yellen told Congress she doesn’t believe Trump’s plan will be enough to achieve that growth.Ballmer, founder of a nonpartisan database for government statistics, told CNBC’s “Squawk Box” that his USAFacts group looked at capital investment and research and development.A major tax…

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