Saturday, 17 November, 2018


Is The Fed Trying To Tank The Trump Economy Before The Midterms?

Trader Peter Tuchman works on the floor of the New York Stock Exchange Wednesday Oct. 10 2018. The Dow Jones Industrial Average plunged more than 800 points its worst drop in eight months led by sharp declines in technology stocks. (AP Is The Fed Trying To Tank The Trump Economy Before The Midterms?
Conrad Doyle | 12 October, 2018, 17:01

At the closing bell, the Dow Jones Industrial Average was at 25,049.65, down 2.1 percent or 545 points, bringing its losses for the week to more than five percent.

"If you look at the charts and you look at the way the market's behaving and you think about the trends that are underneath the bond market, it wouldn't be surprising at all to see the 30-year [yield] go to 4 percent before this move of the breakout above 3.25 percent is over", he told CNBC. The Standard and Poor's 500-stock index hit its longest losing streak in two years.

It's often said that stock markets, whether good or bad, are unfairly linked to whoever sits in the Oval Office. Netflix, for example, is still up more than 60 percent for the year, and Amazon is up almost 50 percent.

Jones points to the US 10-year treasury yield's 40-basis point surge since mid-August as evidence that investors see higher rates on the horizon.

Forecasters with Macroeconomic Advisers left their outlook for annualized gross domestic product growth unchanged at 3.7 percent for the third quarter and 2.6 percent for the fourth quarter. Many observers expected that would trigger a sell-off in the stock market as investors flooded their cash into Treasurys.

In February, when a selloff caused the S&P 500 to fall 10%, the president switched tactics, claiming the stock market had failed to reflect the strong economy. It is often tied to higher costs of borrowing for the federal government, which can spook investors. Amazon dropped another 3.4% on Thursday and Apple fell another 1.4%.

The central bank had raised the benchmark lending rate, which affects everything from mortgages to auto loans to bond yields, just twice before Mr Trump took office in January 2017, after a campaign in which he criticized the institution for allegedly keeping rates near zero in a bid to help his opponent.

Interest rates are rising. Now the Fed's own projections are consistent with the path of rate increases priced into markets.

President Donald Trump lashed out at the Federal Reserve for a second day following the worst US market sell-off since February, blaming the central bank for the stock rout that analysts mostly attributed to fresh concerns about his trade war with China.

"It's a correction we have been waiting for a long time", Trump said. "The Fed has not gone insane".

He has frequently criticised the USA central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing". "I think what they're doing is wrong", Mr. Trump said. This could be a worry for Fed officials trying to keep a lid on inflation. "The Fed is going to do what the Fed thinks it needs to do, Trump's criticisms notwithstanding", he said.

"The US tech bubble may take a while to burst and we are facing many external uncertainties - trade wars, risks in emerging markets currencies and oil price".

"This is just who we are and I think who we will always be, which is, we're a group who - we're quite removed from the political process", Powell said in a recent interview. "It's not a crash yet".

Sears nosedived after the Wall Street Journal reported that the struggling retailer hired an advisory firm to prepare a bankruptcy filing that could come within days.

Recommended

loading...
...

Air India flight hits wall at Trichy airport, gets diverted to Mumbai Air India flight hits wall at Trichy airport, gets diverted to Mumbai Furthermore, Air India Express has informed the Directorate General of Civil Aviation (DGCA) about the matter. The pilot however continued to operate the aeroplane saying the systems were operatinf normally.

Jose Mourinho considering signing Zlatan Ibrahimovic in January 2019 Jose Mourinho considering signing Zlatan Ibrahimovic in January 2019 To some at United, it is not a coincidence that disharmony within the squad has become an issue since Ibrahimovic moved away. The general consensus seems to be that, despite his age, Ibrahimovic would be a good addition to the dressing room.

Britain celebrates second royal wedding of the year Britain celebrates second royal wedding of the year The presence of so many royals - and a number of celebrity guests - has prompted extra security measures to be put in place. Eugenie worked closely with Pilotto and De Vos on the design of the gown, according to a statement from the Royal Family.

Klopp told to sign one player, Ramsey Man Utd update, Shaqiri message Klopp told to sign one player, Ramsey Man Utd update, Shaqiri message It was a decision I made and hopefully it will be the last time I make that decision at that time. "Things are going really well for me now and I'm fully focused on improving and kicking on".

Pacific Northwest gas prices could spike after pipeline explosion Pacific Northwest gas prices could spike after pipeline explosion There were no injuries and RCMP said Thursday there are no indications the explosion was criminal in nature. Meanwhile, petroleum analysts expect gas prices to skyrocket by up to thirty cents per gallon.

Google+ axed after huge privacy bug spotted but kept secret Google+ axed after huge privacy bug spotted but kept secret Ben Smith, Google's VP of Engineering, disclosed more information about the security issue, and how it was discovered. Google also announced launch of more granular Google account permissions that will show in individual dialog boxes.

Disorderly Brexit will hit economy hard, warns OBR Disorderly Brexit will hit economy hard, warns OBR Britain's Brexit minister, Dominic Raab, could also come to Brussels then if weekend talks cover enough ground. The issue of the Irish border, the major sticking point, was "close to being settled", it said .

Space telescope Hubble has failed Space telescope Hubble has failed For now, NASA hasn't offered any timeframe on when can we expect Hubble Space Telescope to come back into operation. That's the error engineers are working to fix now, with the instrument in safe mode to allow them to run tests.

Lady Gaga's open letter on mental health is a must-read Lady Gaga's open letter on mental health is a must-read Recent data from the Ghana Health Service has revealed that about 41 percent of Ghanaians have some form of psychological illness. Mental Health Week will climax on October 13 with a 20/20 cricket match at the Police Recreation Grounds from 9 a.m.

Kanye: 'Trump hat made me feel like Superman' Kanye: 'Trump hat made me feel like Superman' But the campaign "I'm With Her" just didn't make me feel, as a guy that didn't get to see my dad all the time ... He also praised Trump for his handling of North Korea, and said critics needed to be kinder to the President.

Pentagon temporarily grounds Fort Worth-made F-35s after crash prompts inspections Pentagon temporarily grounds Fort Worth-made F-35s after crash prompts inspections The US government's accountability office estimates all costs associated with the project will amount to one trillion dollars. All three services have stopped flying the F-35 while fuel tubes in the aircraft are inspected and replaced if necessary.

Samsung Galaxy A9 launches with four rear cameras Samsung Galaxy A9 launches with four rear cameras The Galaxy A9 (2018) also supports Bixby, Samsung Pay and Samsung Health apps as seen on other high-end Galaxy devices. The Korean company's new phone will also feature mobile payment capabilities and expandable storage of up to 512GB.

Dow drops 545 points as stock market slide continues Dow drops 545 points as stock market slide continues The 10-year Treasury yield rose to 3.22 percent from 3.20 percent late Tuesday after earlier touching 3.24 percent. The Russell 2000 index of smaller-company stocks fell 30.03 points, or 1.9 percent, to 1,545.38.

Samsung A9 has four rear cameras Samsung A9 has four rear cameras Without actually getting the chance to properly put those four lenses through their paces, it's impossible to assess the A9. Unlike the recently launched Galaxy A7 , the new Galaxy A9 still sports a rear-facing fingerprint sensor.

Kanye West stages surreal White House meeting with Donald Trump Kanye West stages surreal White House meeting with Donald Trump But West himself had a caveat: "Only after 2024". "Day One, solved one of his biggest problems". " I love this guy! " he said. Kanye was The White House when President Trump signed the 2018 Music Modernization Act (MMA), which was passed by U.S.