Page 10 - Us Economy

US economy in 'solid shape' with gradual rate cuts coming, says Powell

Federal Reserve Chair Jerome Powell signalled on Monday that more interest rate cuts are in the pipeline but suggested they would occur at a measured pace intended to support a still-healthy economy. His comments, at a conference of the National Association for Business Economics in Nashville, Tennessee, disappointed the hopes of many investors that the Fed would implement another steep half-point reduction in its key rate before the end of the year. The Fed cut its rate by a larger-than-usual half point earlier this month as it has moved past its inflation fight and pivoted toward supporting the job market. The broad S&P 500 stock index initially fell 0.6 per cent after his remarks, but recovered afterwards to close about 0.4 per cent higher. "We're looking at it as a process that will play out over some time," Powell said during a question and answer session, referring to the Fed's interest rate reductions, "not something that we need to go fast on. It'll depend on the data, the

Rates will over time reach neutral level, says US Fed chief Powell

"If the economy evolves broadly as expected, policy will move over time toward a more neutral stance," Powell said

US economy grew at 3% rate last quarter, govt says in final estimate

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged. The Commerce Department reported that the nation's gross domestic product the nation's total output of goods and services growth picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year. Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate that the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment. The U.S. economy, the world's biggest, displayed remarkable resilience in the face of the 11 interest rate hikes the Federal Reserve carried out in 2022 and 2023 to fight the worst bout of inflation in four decades. Since peaking at

US 30 year mortgage rate slips to 6.13%, refinancing activity jumps

Refinancing now accounts for more than 57 per cent of all mortgage applications, the data show, above the historic median of 48 per cent

US Fed's relaxed bank capital plan faces pushback from regulator: Report

At least three of five FDIC board directors whose support is needed to formally propose the new draft currently oppose doing so, the sources said

US household wealth rises in Q2 to record $163.8 trn on real estate gains

The snapshot of households' financial wellbeing comes less than a week before the Federal Reserve is widely expected to reduce borrowing costs for the first time since the pandemic recession

US Treasury reports $380 billion federal budget deficit in August

The deficit for the first 11 months of the 2024 fiscal year reached $1.897 trillion, a 24 per cent increase from a gap of $1.525 trillion in the year-ago period

US banks share fall on warnings of slower-than-anticipated recovery

Bank executives this week softened investor hopes ahead of a widely expected interest rate cut by the Federal Reserve, as well as persistent worries over the economy

US consumer prices rise 0.2% in Aug, underlying inflation shows stickiness

In the 12 months through August, the CPI advanced 2.5 per cent. That was the smallest year-on-year rise since February 2021 and followed a 2.9 per cent increase in July

US dollar declines ahead of key inflation data, presidential debate

The Federal Reserve is expected to cut interest rates next week for the first time in more than four years

Cash could stay attractive for months despite rate cuts, says JP Morgan

In 2001 and 2019 - an aggressive and shallow rate-cutting cycle, respectively - the spread turned positive about three months after the first cut

US weekly jobless claims fall amid low layoffs on upright labour market

A step-down in hiring, which pushed the unemployment rate to a near three-year high of 4.3 per cent in July rattled investors and fanned concerns that a recession was stalking the economy

Global hedge funds posted gains in August despite market rollercoaster

Citadel's flagship multi-strategy fund Wellington was up roughly 1 per cent last month, as well as Schonfeld Strategic Advisors' flagship fund Strategic Partners

Nvidia suffers $279 billion loss in one day due to these factors: Explained

Nvidia lost $279 billion of its market cap on Tuesday, leading a broader market selloff. This followed a quarterly revenue forecast by the company that fell short of investors expectations

Charting the global economy: Inflation pressure cools in US, Europe

Meantime, inflation in Tokyo - a leading indicator of the national data due in September - picked up speed in August, supporting the case for the Bank of Japan to continue raising rates

As US rate cuts near, economic 'soft-landing' odds could dictate market

History shows that stocks tend to perform far better when rate cuts come against a background of resilient growth instead of during a sharp economic slowdown

US Federal Reserve preferred price gauge is set to reinforce rate cuts

Economists see the personal consumption expenditures price index excluding food and energy - the Fed's preferred measure of underlying inflation - rising 0.2% in July for a second month

Jerome Powell says 'time has come' for US Fed to cut interest rates

Swaps traders held roughly steady in their pricing, with the total rate cuts they foresee through the end of 2024 at about 102 basis points

US job market may be near tipping point, unemployment may rise: Research

Fed officials appear to have reached the same conclusion, with reductions to the U.S. central bank's benchmark policy rate expected to begin at the upcoming Sept. 17-18 meeting

With Fed rate cut set, Powell to focus on explaining US economic conditions

Powell instead could provide some background for the public and markets to understand how the Fed will respond as the economy evolves