Wednesday, 03 March, 2021


Investors Cheer Powell's New 'Average Inflation Targeting' Policy

Pound to Euro in August What to expect when Jay Powell addresses the world's top central bankers
Melba Vasquez | 28 August, 2020, 10:24

The aim is to correct the "shortfalls" in achieving the Fed's goal of maximum employment, and a recognition that with changes in the global economy, a tight job market does not necessarily drive prices higher.

Gold prices declined further as the U.S. central bank rolled out an aggressive new strategy to lift employment. It rallied to an all-time high earlier this month as governments and central banks employed stimulus measures to curb the coronavirus pandemic's damage on economies.

"The near V-shape rebound in US 10-year inflation expectations since mid-March is at risk of stalling", said Dhar.

The comments were widely expected and markets had reacted ahead of the announcement.

The euro changed hands at $1.18155, after nearly hitting last week's low of $1.17545 overnight.

World stocks moved in a tight range on Thursday, reserving judgement while bank stocks climbed on the news, with Citigroup and Bank of America up 1.9 percent and JPMorgan Chase up 2.5 percent.

The updated framework will allow inflation to run moderately above its 2% target "for some time" following periods of price growth persistently below that mark.

Under the new approach, the USA central bank will seek to achieve inflation averaging 2% over time, offsetting below-2% periods with higher inflation "for some time", and to ensure employment does not fall short of its maximum level.

The policy shift, though telegraphed in recent statements, is a significant change for the Fed and central banking more generally, as inflation for decades has been the economic villain to be stamped out at every turn.

"Inflation that runs below its desired level can lead to an unwelcome fall in longer-term inflation expectations, which, in turn, can pull actual inflation even lower, resulting in an adverse cycle of ever-lower inflation and inflation expectations", Powell said. That challenge was part of the impetus for the strategy review.

The Fed cut interest rates to near zero at two unscheduled meetings in March and began purchasing massive quantities of USA treasuries and agency mortgage-backed securities to fix financial markets. These measures had sparked investor demand for safe-haven assets and driven gold to multiple record highs throughout the year.

Recommended

loading...
...
  • This Is Halo, Amazon's First Fitness Tracker

    This Is Halo, Amazon's First Fitness Tracker

    The device is compatible with both iOS and Android, but it will not be compatible with other health apps such as Apple Health. Those selected for early access can purchase the band for $64.99 Dollars and receive some months of free service.
    National Hockey League  cancels Thursday's playoff games as a stand against racial injustice

    National Hockey League cancels Thursday's playoff games as a stand against racial injustice

    Game 4s of the Lightning-Bruins and Avalanche-Stars were scheduled for Friday. That's action, and it means more than the words we've spoken before.
    Will Melania's speech shore up Trump's campaign?

    Will Melania's speech shore up Trump's campaign?

    At all." Zegler added that 21% of United States residents speak a language other than English at home. She says she has days she looks for wisdom with "so many lessons to teach my son".
  • Mali: EU suspends its military and police training after coup

    Mali: EU suspends its military and police training after coup

    Coup leaders in Mali have released ousted President Ibrahim Boubacar Keita from detention, a junta official said on Thursday. Keita was elected in 2013 as a unifying figure in a fractured country and was returned in 2018 for a second five-year term.
    R. Kelly Allegedly Catches Jailhouse Fade By Another Inmate Over Lockdowns

    R. Kelly Allegedly Catches Jailhouse Fade By Another Inmate Over Lockdowns

    According to TMZ , the disgraced R&B star got into his first tiff behind bars when a "frustrated inmate" jumped Kelly in his cell. In one incident, prosecutors claim a vehicle was set on fire in order to intimidate a woman from testifying.
    The Witcher: Monster Slayer is The Witcher 3 meets Pokemon Go

    The Witcher: Monster Slayer is The Witcher 3 meets Pokemon Go

    The Witcher: Monster Slayer is an augmented-reality exploration game that challenges you to become an elite monster hunter. If you're hungry for more information, be sure to bookmark the Shacknews page dedicated to The Witcher: Monster Slayer .
  • New COVID Cases Spike in Minnesota

    Two ZIP codes in McHenry County (61038 and 60072) have reported five cases or fewer, according to the health department. Out of these active cases, 22 people are in hospital, and seven of these are in intensive care.
    Leeds close in on Rodrigo as Valencia exodus continues

    Leeds close in on Rodrigo as Valencia exodus continues

    He told Sky Sports: "I don't think I was expecting to get into the England squad this early, even before the season has started". They will have to find a replacement for Ben White, who has since re-joined parent club Brighton and Hove Albion.

    New Facebook Reality Labs to develop next-generation AR/VR products

    FRL was the name previously given to the company's research division , which in turn used to be known as Oculus Research . Facebook still plans on making Oculus-branded VR headsets and Oculus is still at the heart of Facebook's VR efforts.
  • COVID-19 Numbers as of 4:30 pm August  26

    COVID-19 Numbers as of 4:30 pm August 26

    Cases presumed active, meaning test results were confirmed within the last 14 days, also continued to notably decline. After cases began rising in late June and early July, the number of new cases has dropped steadily in August.
    COVID-19 contacts should be tested, regardless of symptoms

    COVID-19 contacts should be tested, regardless of symptoms

    Those limitations were influenced by supply shortages, said Burgess, who was an ob/gyn physician before entering politics. Burgess also pointed out that the upcoming flu season could create a second hurdle for reining in the pandemic.
    Fall Guys’ Second Season Is Medieval Themed

    Fall Guys’ Second Season Is Medieval Themed

    Devolver Digital and Mediatonic have discovered that Fall Guys will continue its journey within multiple seasons to come. All this culminated with the reveal of Season 2 during the recent Gamescom Opening Night Live Presentation.

Usain Bolt reportedly tests positive for COVID-19 following 'mask-free' party Usain Bolt reportedly tests positive for COVID-19 following 'mask-free' party Bolt did not have any symptoms of the virus and did a test as a precautionary measure before leaving the country on business. Bolt's positive test is coming few days after hosting a lavish 34th birthday. "It is now public knowledge that Mr.

Jared Kushner says National Basketball Association players took a night off work Jared Kushner says National Basketball Association  players took a night off work Thursday night's playoff games also were canceled, but reports said the players likely would return to play over the weekend. The NBA has even incorporated its support for the Black Lives Matter movement into player uniforms and advertising.

Selena Gomez celebrates Blackpink collab with special 'ice cream' flavor Selena Gomez celebrates Blackpink collab with special 'ice cream' flavor Selena Gomez has started her own cooking show in which she co-stars with different chefs while experimenting with different cuisines.

Japan PM Abe stepping down over health Japan PM Abe stepping down over health Sources have told Reuters that Abe would consult his doctors before meeting the media, either by phone or another hospital visit. Earlier on Friday, Yoshihide Suga, a member of Abe's cabinet, insisted that the prime minister would finish out his term.

Naomi Osaka pulls out of tournament to protest racial injustice Naomi Osaka pulls out of tournament to protest racial injustice In Osaka's initial statement , posted on Twitter, she said she had made the decision to withdraw to move the conversation forward. Naomi Osaka has announced her she will not play her Western and Southern Open semi-final in the name of racial justice.

DOOM Eternal at 1000 fps required some seriously cool hardware DOOM Eternal at 1000 fps required some seriously cool hardware DOOM Eternal is now available for the PlayStation 4, Xbox One, and PC; Nintendo Switch version expected to release soon. That's because it looks like you'll have to fight two of Eternal's most divisive enemy at the same time.

LEGO Star Wars: The Skywalker Saga reportedly delayed to 2021 During the campaign, players will fly as two pilots on opposites sides of the war, according to narrative producer Suzanne Hunka . That's great news for fans who missed the fact that there wasn't a LEGO game for The Last Jedi or The Rise of Skywalker .

Leaked video shows LG phone with twisting second screen LG has been experimenting with dual-screen phones for a while, without succumbing to the foldable phone trend. Android Authority posted an exclusive video of the phone, demonstrating the dual-screen that forms a T-shape.

Jerry Falwell Jr. due $10.5 million after resigning from Liberty University again They have accused Granda of trying to extort them and say he is lying about "90 percent" of their interactions with each other. He claimed they had sex several times a year through 2018 and that, bizarrely, Jerry liked to watch.

OHA: 222 new cases, 6 new deaths Bonnie Henry and Health Minister Adrian Dix reported 2,730 people are under public health monitoring. The San Luis Obispo County Public Health Department is asking for the public's feedback on testing.

Jurgen Klopp unaware of Liverpool's transfer budget Jurgen Klopp unaware of Liverpool's transfer budget He told Die Zeit: "We will lose some players who have tremendous quality, we have to deal with that". According to @BILD Information, Thiago even shed tears at the employee party in the Arena on Monday.

Keanu Reeves Says Bill and Ted Are Not Stoners Keanu Reeves Says Bill and Ted Are Not Stoners Fans are expecting the mutants to start nipping in the MCU and speculations are rife on who might end up playing Wolverine . Reeves' Bill and Ted co-star Alex Winter jumped in, explaining that it's "not too late" for Reeves to take on Wolverine.

Call of Duty: Black Ops Cold War Beta: 5 Things to Know Call of Duty: Black Ops Cold War Beta: 5 Things to Know The uncover trailer for Call of Duty: Black Ops Cold War gives some reality and in-game film between the years 1968 and 1981. The Call of Duty: Black Ops Cold War beta is at least two days, but this typically means two weekends as we mentioned above.

Global smartphone sales reach 296mn units in Q2, Samsung sold 55mn Global smartphone sales reach 296mn units in Q2, Samsung sold 55mn More specifically, Samsung sold a total of 54.7 million units during the quarter, enough to secure an 18.6% market share. Apple's year-on-year performance was almost flat, with shipments of 38.4 million iPhones just a 0.4 per cent decline.

Fed's inflation push lifts S&P 500, Nasdaq to new highs Fed's inflation push lifts S&P 500, Nasdaq to new highs The pan-European STOXX 600 index .STOXX rose 0.91% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.89%. The coming storm, which is now a category 4, prompted crude producers and refiners to shut down their facilities.