Markets News 

There’s ample evidence the Fed’s worst fears about the economy are coming true — and they signal that rate cuts are coming

“On the one hand, that decline could stem from a decrease in expected inflation on the part of market participants” writes David Rosenberg for businessinsider.com. The US economic forecast prepared by the staff for the January FOMC meeting was revised down a little, on balance, primarily reflecting somewhat lower projected paths for domestic equity prices and foreign economic growth.Participants noted that growth of business fixed investment had moderated from its rapid pace earlier last year.Participants noted that financial asset prices appeared to be sensitive to information regarding trade policy tensions,…

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News 

Millions of American jobs are going unfilled because of the ‘skills gap,’ and Prudential’s vice chairman says the responsibility for closing it largely rests on companies like his own

“Continuing the momentum will depend on the availability of workers with the appropriate skills to take advantage of new job opportunities,” the Council stated” writes Robert Falzon for businessinsider.com. But, as we continue to see job openings outpacing qualified workers nationwide, the “skills gap” runs the risk of jeopardizing America’s economic future and competitiveness.According to the Department of Labor, 6.9 million jobs remain unfilled and, at Prudential, we feel this challenge every day.We know like-minded companies understand the value of investing in career training and are rising to the challenge. Source:…

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News Regulators 

A Fed pivot, born of volatility, missteps, and new economic reality

“GRAPHIC – How the Fed’s meeting minutes reflected changing views on interest rates: https://tmsnrt.rs/2TX9fC0 It was a conclusion hiding in plain sight” reports businessinsider.com. Over the next few weeks, the Fed eschewed subtlety for a more public acknowledgement that its view of economic reality had changed.Investors dumped stocks and bonds, fearing the Fed aimed to drive rates higher than they felt the economy could withstand.It was the beginning of weeks of volatility that led the Fed to recalibrate its message, with more than one misstep along the way.References to the…

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News 

A future of erratic weather, higher seas, and extreme heat could lead to an economic ‘Great Dying’ twice as severe as the Great Depression

“What climate change has in store is not a Great Recession or a Great Depression but, in economic terms, a Great Dying” writes David Wallace-wells for businessinsider.com. Heat hurts test-taking performance, as does pollution associated with global warming.To those on one end, global warming could cultivate emergent forms of eco-socialism, while to those on another, it could conceivably produce a collapse of faith in anything but the market.India alone, one study suggested, would shoulder more than a quarter of the economic suffering inflicted on the entire world by climate change…

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Markets News Regulators Stocks 

Bad economic news is bad for the stock market again with the Fed already on hold

“Bad news for the economy is no longer good news for the stock market” writes Patti Domm for cnbc.com. The stock market on Thursday slumped after a string of reports that missed expectations.So after a stream of negative economic data Thursday, traders saw little reason to bid up stocks on the hopes the Fed would ease up on policy .They’re certainly going to use their balance sheet as a stealth stimulus, and the stock market just had a significant run,” said Art Hogan, chief market strategist at National Securities.The declines…

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Markets News Stocks 

The stock market’s recent turbulence reminds one expert of the periods before the past 2 financial crises — here’s how he says investors should respond

“Buying some cheap protection now against the risk of US entering recession prematurely would make sense in our view,” Bokobza said” writes Joe Ciolli for businessinsider.com. And for that reason, the caution being stressed by the firm sits at odds with the market’s seemingly voracious risk appetite.It shows that past instances of elevated volatility were accompanied by the types of sudden economic contractions. Source: businessinsider.com

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News 

Leading index for U.S. economy falls in January, but there’s a catch

“Fixes month for leading index and the duration of the decline” writes Jeffry Bartash for marketwatch.com. What happened: The decline in the leading index stemmed mostly from an increase in initial jobless claims and “weaknesses in the labor market,” said Ataman Ozyildirim, director of economic research at the privately run board.What’s got manufacturers and other American companies worried, though, is the festering trade dispute with China and a slowing global economy.The numbers: A survey of economic conditions in the U.S. fell in January and reflected a recent slowdown in growth,…

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Crypto News 

Ongoing Economic Crises in Venezuela and Beyond Show That the Idea of Bitcoin as a Store of Value Is Increasingly Catching On

“And as one might expect, such declines were complemented by upticks in Bitcoin trading” writes Simon Chandler for cointelegraph.com. This is why the recent increases in Bitcoin trading against the Turkish lira haven’t been on the scale of trading against the Venezuelan bolívar.In Venezuela, with inflation currently exceeding 100,000 percent, and with millions of people struggling to feed themselves, these three conditions have certainly met.Venezuela may be the starkest example of how financial crises can encourage cryptocurrency adoption, but it isn’t the only one. Source: cointelegraph.com

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News 

Elizabeth Warren’s childcare proposal relies on dishonest accounting

“Elizabeth Warren’s proposal to extend affordable childcare to everybody relies on dishonest accounting to create the impression that it is more fiscally sound than it may actually be in reality” reports washingtonexaminer.com. Previously, liberal University of California, Berkeley economists Emmanuel Saez and Gabriel Zucman, estimated that the wealth tax would raise $2.75 trillion over a decade.However, footnote vii notes, “One complication is that we have not evaluated the budget or economic implications of the senator’s wealth tax.So she’s being dishonest when she claims the wealth tax would raise, “four times…

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