Page 15 - Federal Reserve

Oil price rises as market awaits Federal Reserve's interest rate decision

The IEA, meanwhile, increased its oil demand growth forecast for this year by 200,000 barrels per day (bpd) to 2.4 million bpd, lifting the projected total to 102.3 million bpd

As Fed Reserve signals rate pause, Powell will have to placate hawks

Policymakers are expected to leave rates in a range of 5% to 5.25% at their June 13-14 meeting, allowing them to take stock of the outlook following recent strains in the banking sector

US Federal Reserve seen skipping June, maybe hiking in July after jobs data

Traders now see about a one-in-three chance that the Fed will deliver an 11th straight rate increase at its June 13-14 meeting, up from about one-in-four before the Labor Department report

Cause and effect: Are corporate profits fueling inflation globally

As the Federal Reserve continues with hikes, the linkage between corporate profit margins and inflation is blamed for consumer burden

Raising bets: FPI buying in Indian shares at nine-month high in May

Net buyers of equities worth Rs 37,317 crore in May, highest since Aug 2022

Why Fed rate-hike pause may not be good for stocks as Wall Street hopes?

The possible end to the Federal Reserve's long campaign of rate hikes appears like an oasis to beaten-down Wall Street investors, but is it a mirage? With inflation cooling from its peak last summer, Wall Street overwhelmingly assumes the central bank will hold rates steady for the first time in more than a year when it meets next month. High rates knock down inflation by slowing the economy, raising the risk of a recession and hurting prices for all kinds of investments. The stock market has held steady in recent weeks as investors bet on a pause by the Fed, offsetting a long list of other concerns, from cracks in the US banking system to the US government's edging toward what could be a catastrophic default on its debt. History seems to be on Wall Street's side. Going back to the 1980s, the S&P 500 has jumped an average of nearly 6 per cent in the three months after the Fed makes its final increase in a rate-hike campaign. But something makes today different than those four ...

US factories production surges in April as motor vehicles output rises

Capacity use for the manufacturing sector increased 0.7 percentage point to 78.3% in April. It is 0.1 percentage point above its long-run average

Powell faces lowest public confidence for Fed chairman on record: Gallup

A Gallup poll released Tuesday shows 36% of US adults say they have a "great deal" or a "fair amount" of confidence that Federal Reserve chairman would do or recommend the right thing for the economy

US manufacturing sector contracts for sixth straight month in April

The sector, which accounts for 11.3% of the economy, is being weighed down by the Federal Reserve's fastest interest rate hiking campaign since the 1980

Federal Reserve seen boosting rates even as economic risks build in US

The Federal Open Market Committee is expected to boost the benchmark lending rate target by another quarter percentage point on Wednesday

Federal Reserve faults Silicon Valley Bank execs, itself in bank failure

Silicon Valley Bank failed due to a combination of extremely poor bank management, weakened regulations and lax government supervision, the Federal Reserve said on Friday, in a highly-anticipated review of how the central bank failed to properly supervise the bank before it collapsed early last month. The report, authored by Federal Reserve staff and Michael Barr, the Fed's vice chair for supervision, takes a critical look at what the Fed missed as Silicon Valley Bank grew quickly in size in the years leading up to its collapse. The report also points out underlying cultural issues at the Fed, where supervisors were unwilling to be hard on bank management when they saw growing problems. The Federal Reserve did not appreciate the seriousness of critical deficiencies in the firm's governance, liquidity, and interest rate risk management. These judgments meant that Silicon Valley Bank remained well-rated, even as conditions deteriorated and significant risk to the firm's safety and ...

Fed's review report of supervision in Silicon Valley Bank collapse out

The Federal Reserve is scheduled Friday to release a highly-anticipated review of its supervision of Silicon Valley Bank, the go-to bank for venture capital firms and technology start-ups that failed spectacularly in March, setting off a crisis of confidence for the banking industry. The review, due to be released at 11 a.m. eastern, is expected to examine how regulators may have missed warning signs in Silicon Valley Bank's business and whether they could have been addressed before the bank failed. Further, the report is expected to look at what regulators could do better to prevent a similar bank failure in the future. Federal regulators seized Silicon Valley Bank on March 10 after customers withdrew tens of billions of dollars in deposits in a matter of hours. Two days later, they seized Signature Bank of New York. Although regulators guaranteed all the banks' deposits, customers at other midsize regional banks rushed to pull out their money often with a few taps on a mobile ...

Emerging markets have an edge over mature markets, says BlackRock

The world's biggest money manager favors stocks and bonds from the developing world over those from mature economies in the short term

Potential US recession signal sets off global rush into Indonesian bonds

With the US and Indonesian central banks seen approaching the end of their respective hiking cycles, inflows looking for higher carry returns are likely to keep increasing in the second quarter

Gold price extends rally as weak US data bolsters Fed slowdown bets

The dollar index steadied, but was still near two-month lows, making bullion cheaper for buyers holding other currencies

Key inflation gauge tracked by Federal Reserve slowed in February

The Federal Reserve's favoured inflation gauge slowed sharply last month, an encouraging sign in the Fed's yearlong effort to cool price pressures through steadily higher interest rates. Friday's report from the Commerce Department showed that consumer prices rose 0.3% from January to February, down from a 0.6% increase from December to January. Measured year-over-year, prices rose 5%, slower than the 5.3% annual increase in January. The report also showed that consumer spending rose 0.2% from January to February, a drop from a month earlier but an indication that households are still providing fuel for economic growth. Taken as a whole, Friday's figures show that inflation pressures, though easing gradually, still maintain a grip on the economy. The Fed has raised its benchmark rate nine times since March of last year in a strenuous drive to tame inflation, which hit a four-decade high in mid-2022. Even after having slowed, consumer prices are still posting year-over-year increase

RBI likely to follow Fed, keep rates higher for a while, says economist

The RBI's six-member rate-setting panel will meet April 3, 5 and 6 to likely raise the benchmark rate for a seventh successive time

Crypto wrap: Market remained in green despite rate hikes by Fed, BoE

Another major development in the crypto world during the week was the US Securities and Exchange Commission's 'Wells notice' to crypto exchange Coinbase

UK central bank hikes interest rates like Fed amid financial turmoil

The Bank of England focused on fighting inflation, announcing an 11th consecutive interest rate increase Thursday despite concerns about the economic fallout from troubles in the global financial system. Britain's central bank boosted its key rate by a quarter-percentage point to 4.25 per cent, a day after the US Federal Reserve approved a similar move to tame inflation that is crimping household budgets and slowing economic growth. The decision by the bank's Monetary Policy Committee came after the UK statistics agency surprised policymakers Wednesday by reporting that inflation accelerated to 10.4 per cent in February, driven by the cost of food, clothing and dining out. Before the figures were released, many analysts had expected the Bank of England to keep rates on hold following the collapse of two US banks and the ensuing troubles at Switzerland's Credit Suisse, which forced a hastily arranged takeover by rival UBS. The bank will continue to monitor closely indications of ...

With the latest hike, US Fed's rate hikes reach 500bps in one year

Fed Chair Jerome Powell last night said "rate cuts are not in our base case" for the remainder of 2023