Fed’s Harker now says that Fed could hike interest rates up to two times this year instead of three

The Federal Reserve could hike interest rates up to two times before year end, a top U.S. central banker said on Wednesday, slightly downgrading his expectations for monetary tightening even though he said the economy is on “fairly firm footing.” Philadelphia Fed President Patrick Harker, when he last spoke publicly in late May, predicted two to three rate increases this year…

IMF Lagardes says further Fed rate hikes should be gradual or risk hurting emerging economies

Further interest rate hikes by the U.S. Federal Reserve should be gradual or they risk hurting already fragile emerging economies, where many companies borrow in dollars, the head of the International Monetary Fund said on Tuesday. Christine Lagarde said a tightening in U.S. monetary policy, which started last month with the first rate hike in a decade, should be supported by “clear evidence” of inflation in the United States. She highlighted the negative implications for emerging economies…

U.S. consumer price index rises to 0.2% in October, increases likelihood for Fed rate hike

The costs of food, gasoline, shelter and medical care rose last month, yet inflation continues to run at low levels ahead of a December Federal Reserve meeting to consider raising short-term interest rates for the first time in nearly a decade. The consumer price index rose 0.2 percent in October after falling the prior two months, the Labor Department said Tuesday. Prices at the pump advanced 0.4 percent last month, but gas costs have plunged 27.8 percent from a year ago…

World markets to keep focus on China’s economy, U.S. Fed rate hike

Fears over the health of China’s economy kept world markets on edge this week and the country will remain in focus, along with the question of whether the Federal Reserve will raise interest rates next month. Those concerns sent world stocks, commodities and currencies on a roller-coaster ride this week, and purchasing manager surveys due on Tuesday are expected to show manufacturing contracted during August in the world’s second-biggest economy…

Surprise Fed rate hike could spark widespread volatility: IMF

The Federal Reserve could spark widespread volatility in global financial markets if its move to raise interest rates surprises markets, the International Monetary Fund said Wednesday. In its semiannual report on threats to the financial system, the IMF said risks had increased since last year as the dollar strengthened and the Fed weighs raising borrowing costs. The fund cited a long list of potential trouble spots around the world…

Top 10 Weekly Forex Market Headlines – 04.10.2015

1. Bank of England likely to leave rates unchanged at 0.5% this week April 6, While economists are divided over when the Bank of England will end this current spell of steady interest rates, no one expects rates to match their 1940-1951 run The Bank of England is expected to leave interest rates on hold […]

Fed minutes show debate over June rate hike’s timing

Federal Reserve officials were divided at their March policy meeting on whether they might raise interest rates in June, and recent soft economic data could make a midyear move even less likely. Minutes of the Fed’s March 17-18 policy meeting, released by the central bank Wednesday with the regular three-week lag…

Fed’s rate hike unclear, recent U.S. weakness does not signal more substantial slowdown: Fed Dudley

(Reuters) – The timing of the Federal Reserve’s interest rate hike, which would be its first in nearly a decade, is unclear and for now policymakers must watch that the U.S. economy’s surprising recent weakness does not signal a more substantial slowdown, a top Fed official said on Monday. New York Fed President William Dudley’s […]

U.S. nonfarm payrolls rose only 126,000 in March, jobless rate held steady

(Reuters) – U.S. employers added the fewest number of jobs in more than a year in March, the latest sign of weakness in the economy and one likely to further delay an anticipated interest rate increase by the Federal Reserve. Nonfarm payrolls rose 126,000 last month, less than half February’s pace and the smallest gain […]

Top 10 Weekly Forex Market Headlines – 04.03.2015

1. Yellen signals rate hikes likely to start later this year March 30, Federal Reserve Chair Janet Yellen signaled that the U.S. central bank will likely start raising borrowing costs later this year, even before inflation and wages have returned to health, but emphasized the return to normal interest rates will be gradual. A downturn […]

Top 10 Weekly Forex Market Headlines – 03.20.2015

1. U.S. factory production slips 0.2% in February, drops for 3rd straight month March 16, U.S. manufacturing output fell in February for the third straight month as the production of automobiles and a range of goods tumbled, the latest indication of slower economic growth in the first quarter. Factory production slipped 0.2 percent after declining […]

Bearish bets on Asian FX rise as U.S. Fed moves closer to rate hike

(Reuters) – Bearish bets on most emerging Asian currencies increased in the last two weeks, with short positions in the Singapore dollar at a six-year high, as the Federal Reserve moved closer to raising interest rates, a Reuters poll showed on Thursday. Short positions on the Chinese yuan CNY=CFXS, however, were reduced on perceptions that the central bank would support the currency…

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