United States: Fed Risks Stoking Financial Bubble in Drive to Lift Inflation The Federal Reserve risks stoking the same sort of asset bubbles that Chairman Jerome Powell has linked to the last two recessions with its new-found eagerness to fan inflation. The Fed’s surprise pivot away from any interest rate increases this year has boosted
United States: If You Think Trump’s China Policy Is Tough, Wait for Car Tariffs President Donald Trump’s threat to restrict foreign car imports would have a greater effect on the global economy than the U.S.-China conflict, according to World Trade Organization Chief Economist Robert Koopman. “Let me suggest a back-of-the-envelope calculation,” Koopman told reporters on
United States: U.S. Consumer Spending Misses Forecasts as Inflation Eases U.S. consumer spending in January was short of projections while inflation eased, an early read on the economy in the first quarter that may add to concerns about the outlook. Purchases, which account for about 70 percent of the economy, rose 0.1 percent from the
United States: U.S. Trade Team Back in Beijing as China Sees Much Still to Do U.S. trade officials including Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer landed in Beijing Thursday for talks aimed at nailing down a deal with China, as an official there warned there are still many issues outstanding. Arriving at
United States: U.S. January Trade Gap Narrows as Imports From China Plummet The U.S. trade deficit pulled back in January from the widest level in a decade as imports from China plunged, suggesting American companies had been rushing shipments the prior month to beat an expected tariff boost. The deficit in goods and services narrowed
United States: Fed Policy ‘About Right’ After Pivot, Economists Say The Federal Reserve is getting monetary policy “about right” after pivoting in recent weeks to a decidedly more dovish posture than at the end of 2018, according to a plurality of economists surveyed by Bloomberg. Just under half of all respondents to a March 21-22
United States: Powell Aims to Dodge Japan Deflation Trap With Dovish Fed Tilt Almost 40 years after Paul Volcker brought the U.S. economy to its knees to bring inflation down, Federal Reserve Chairman Jerome Powell and his colleagues are on a mission to stoke price pressures and avoid a Japan-like deflationary trap. Declaring that too-low
United States: Fed May Retain Bias to Hike Interest Rates: Decision-Day Guide Federal Reserve Chairman Jerome Powell says the central bank has no bias in whether its next move is up or down, but his colleagues may deliver a more hawkish message. The Federal Open Market Committee is likely to forecast one interest-rate increase for
United States: Rate-Hike Patience May Leave Fed in a Bind If Inflation Softens Federal Reserve officials say they’re willing to tolerate an overshoot of their inflation goal. If the opposite happens, the plan is less clear. Core inflation, excluding energy and food prices, is currently just shy of the central bank’s 2 percent target. Most
United States: Fed Expected to Hit Rate Cycle’s Peak After One More Hike: Survey The Federal Reserve will bring the current cycle of interest-rate increases to an end after one more hike later this year, according to a new Bloomberg survey of economists. The median of responses in the March 13-15 poll predicted one hike
