Key Facts For The Upcoming FOMC Meeting

The Fed is not likely to hike rates yet again, at least not in the immediate meeting after the March rate hike,  that is, of course, the consensus; however, considering how much these so-called “economists” have gotten wrong over the past few years, if it were up to me, I’d say anything goes, although the […]

U.S. producer prices hit 4-year high amid rise in cost of energy products

U.S. producer prices rose more than expected in January, recording their largest gain in more than four years amid increases in the cost of energy products and some services, but a strong dollar continued to keep underlying inflation tame. The Labor Department said on Tuesday its producer price index for final demand jumped 0.6 percent last month. That was the largest increase since September 2012 and followed a 0.2 percent rise in December…

U.S. trade gap surged 17.8% in October as exports weakened, imports jumped

The U.S. trade deficit widened sharply in October as exports weakened following a summer surge, and imports jumped, setting up a likely drag on overall economic growth in the final months of 2016. The trade gap for goods and services surged 17.8% from a month earlier to a seasonally adjusted $42.6 billion in October, the Commerce Department said Tuesday…

U.S. consumer prices rise 0.4% in October, post largest increase in six months

U.S. consumer prices recorded their biggest increase in six months in October on rising gasoline costs and rents, suggesting a pickup in inflation that potentially clears the way for the Federal Reserve to raise interest rates in December. The Labor Department said on Thursday its Consumer Price Index increased 0.4 percent last month after rising 0.3 percent in September. In the 12 months through October, the CPI advanced 1.6 percent, the biggest year-on-year increase since October 2014…

UK unemployment falls to 4.9% in September, hits 11-year low

Unemployment dropped to its lowest level in 11 years in September in a further indication that Britain’s employers have largely shrugged off the Brexit vote. Official figures show the unemployment rate was 4.8%, the lowest since September 2005 and down from 4.9% in August and 5.3% a year earlier. The fall in unemployment by 37,000 from the previous quarter to 1.6 million people was held up by the employment minister, Damian Hinds, as the mark of a strong labour market in the wake of the EU referendum…

U.S. retail sales up 0.8% in October, reinforce December rate hike

U.S. retail sales rose more than expected in October as households bought motor vehicles and a range of other goods, pointing to sustained economic strength that could allow the Federal Reserve to raise interest rates next month. The Commerce Department said on Tuesday retail sales increased 0.8 percent last month, also boosted by demand for building materials likely as households cleaned up and made repairs in the wake of Hurricane Matthew…

Only ‘significant negative news’ could derail the Fed from raising rates in December: Fed’s Rosengren

Only “significant negative news” could derail the Federal Reserve’s high expectations for raising U.S. interest rates next month, a Fed official who has recently advocated for policy tightening said on Tuesday. Boston Fed President Eric Rosengren, a historically dovish policymaker who surprised some in September when he joined the minority in advocating a rate rise, said the U.S. economy should hit its inflation goal next year and could well go too far in driving unemployment lower…

Oil producers will continue to pump relentlessly if OPEC fails to cut output

The amount of oil hitting world markets will continue to grow relentlessly if OPEC fails to agree production cuts, the International Energy Agency has warned. And making the proposed cuts a reality will be very difficult. “We can see the scale of the task ahead,” said the Paris-based agency. OPEC agreed in principle to cut oil production at a meeting in September…

Chinese yuan hits 6-year low against the U.S. dollar after Trump’s victory

China’s currency sank to a six-year low against the U.S. dollar on Thursday as investors weighed what a Donald Trump presidency could mean for trade between the world’s two largest economies. On the campaign trail, Trump talked tough about China, accusing it of “raping” the U.S. through trade and manipulating its currency, the yuan…

Britain’s trade deficit widens in September despite sharp drop in the pound

Britain’s trade deficit with the rest of the world widened unexpectedly in September as the sharp fall in the pound since the Brexit vote failed to boost exports. The UK trade in goods deficit increased by £1.6bn over the month to £12.7bn. Imports rose £1.3bn to £38.8bn, while exports fell by £200m to £26.1bn. Imports of ships, materials, vehicles and oil were all up in September, the Office for National Statistics said…

U.S. NFP: October wages climb 10 cents, 2.8% annualized increase

The U.S. economy added a less-than-expected 161,000 jobs in October and the unemployment rate stood at 4.9 percent as investors got to digest the final payrolls report before Tuesday’s presidential election. But the bigger number in the report could be wages, with average hourly earnings climbing 10 cents and reflecting a 2.8 percent annualized increase, according to the report from the Bureau of Labor Statistics…

Fed held interest rates steady again; markets anticipate rate hike in December

With financial markets anticipating a rate hike before the end of the year, the Federal Reserve held interest rates steady again while continuing to acknowledge that the case for a move is getting stronger. Federal Open Market Committee officials, however, made no direct nod to a coming rate increase at the December meeting, a move that the market is strongly anticipating. In fact, the dovish FOMC majority gained a vote…

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