News 

Egypt’s annual core inflation falls to 2.1%, while urban headline inflation rises to 3.6% in November

“It added that the headline annual inflation rate increased slightly in November to 2.7% compared to 2.4% in October” writes Hossam Mounir for dailynewssegypt.com. The note forecasts annual headline inflation of 7.3% in December.November headline inflation inches up on base effect, slightly below our expectation of 4%, Beltone Financial said in a research note.She explained that the annual rate of inflation during November recorded 3.6% annually, which is slightly lower than expectations, which was 3.9%.Meanwhile, the Central Agency for Public Mobilization and Statistics (CAPMAS) said that the urban annual consumer…

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News Regulators 

Gold prices end higher as focus turns to Fed policy announcement, China trade deal

“Still, gold bulls make the case that signs that U.S. inflation may be edging up and demand for the hard commodity in Asia have underpinned prices” writes Markets Commodities Reporter for marketwatch.com. Higher yields can pressure prices for gold, which doesn’t offer a yield, but a weaker U.S. dollar can help to support buying in dollar-priced precious metals.February gold GCG20, +0.30%  on Comex picked up $3.20, or 0.2%, to settle at $1,468.10 an ounce, following losses in the past two sessions. Source: marketwatch.com

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Fed is likely to reinforce a message of continued low rates

“Powell maintains that the purchases are intended to improve the functioning of the financial system, and not to lower rates” writes The Associated Press for seattletimes.com. WASHINGTON (AP) — The Federal Reserve is expected to send a clear message when its latest policy meeting ends Wednesday: Interest rates will likely stay ultra-low for the foreseeable future.This view has freed the Fed’s policymakers to keep their benchmark short-term interest rate low. Source: seattletimes.com

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When Volcker ruled the Fed, ‘people thought they’d never buy a home again’

“What Volcker did was raise the fed funds rate to levels people never thought they would see” writes Patti Domm for cnbc.com. Volcker allowed the fed funds rate, now topped out at 1.75%, to rise over 20%, and with it went the interest on home mortgages and everything else.There were farmers and business executives out in front of the Fed picketing and complaining about interest rates,” Rupkey said. Source: cnbc.com

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Paul Volcker, the Fed chairman who reined in runaway inflation, dies at 92

“Paul A. Volcker, the powerful Federal Reserve chairman whose grit and determination helped break the back of inflation in the early 1980s and put the American economy on a path to extended growth, has died” writes Don Lee Covers for latimes.com. In 2010, the Obama administration proposed a set of banking regulations that it dubbed the Volcker Rule.Though Volcker had little direct influence in the Obama White House, he was a vocal critic of the banking industry’s culture of excessive risk-taking, pushing to limit the power of big banks and…

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News 

Argentina’s new central bank head Pesce likely to shun Macri-era orthodoxy

“Pesce – who has chided Macri’s administration for treating the central bank as a “sacred cow” – waved through Fernandez de Kirchner’s request, prompting some to question his defense of central bank autonomy and independence” writes Midwest Communications Inc for 95kqds.com. Pesce and Fernandez de Kirchner are also being probed by federal prosecutors over accusations that future dollars were sold below market value during his tenure at the central bank.BUENOS AIRES (Reuters) – Argentina’s incoming central bank head, Miguel Angel Pesce, will need all his guile to navigate the country’s…

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Markets News 

This is the hottest job market since the 1990s. Why aren’t wages growing faster?

“But wage growth peaked in February at 3.4 percent and has pulled back since then, puzzling economists” writes Heather Long for washingtonpost.com. And it does not show any signs of rebounding, even in a hot job market. “One thing that really troubles me is the pace of wage growth.What they mean by that is workers in non-manager roles are experiencing faster wage growth than supervisors, a welcome trend to many.But one of the few head scratchers in this strong jobs picture is why wages aren’t growing as fast as they…

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Markets News Regulators 

What Trump does before trade deadline is the ‘wild card’ that will drive markets in the week ahead

“If there’s no China deal, that could beat up stocks, send Treasury yields lower and send investors into other safe havens” writes Patti Domm for cnbc.com. He rattled markets when he said he could wait until after the election for a trade deal with China.Economic reports in the coming week include CPI inflation Wednesday, which could be an important input for the Fed. Source: cnbc.com

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Chile consumer prices barely budge in November amid unrest

“SANTIAGO (Reuters) – Chilean consumer prices rose 0.1% in November, the government’s statistics agency said on Friday, as annual inflation rose closer to its target” writes Midwest Communications Inc for 95kqds.com. Annual inflation hit 2.7%, still towards the lower end of the bank’s 2% to 4% range though creeping closer to its 3% target.Statistics agency INE did not mention the protests in a statement accompanying the data release. The bank expects inflation to hit 3.4% in 2019. Source: 95kqds.com

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