Thursday, 24 May, 2018

FOMC Holds Rates Steady, Sees Inflation Near Target

All eyes will turn to the Eccles Building on Wednesday afternoon All eyes will turn to the Eccles Building on Wednesday afternoon
Andy Castillo | 04 May, 2018, 14:20

Singapore is not seen as being as sensitive to higher United States interest rates in comparison to its regional peers, which does provide some light behind why the Singapore Dollar is trading somewhat higher against the USD after the FOMC statement. "The market is still a bit too long euros and remains vulnerable", she said. They referred to the labour market as still strong, brushing off the weakness and concerns related to last month's labour report.

Fed officials find themselves at a potential turning point this year.

In late March, the Fed raised interest rates by a quarter percent for the first time this year during Jerome Powell's first meeting as Chairman.

The central bank also signalled that the gradual path of rate hikes will stay.

Combined with USA economic growth and low unemployment, stronger inflation will likely encourage the Fed to maintain its pace of gradual rate increases this year. One exception is Goodfriend, who has favored changes pushed by conservatives to limit the Fed's flexibility in rate decisions.

The Fed expressed confidence that a recent rise in inflation to near the USA central bank's target would be sustained, leaving it on track to raise borrowing costs in June. U.S. growth remains robust, but the euro area economy recorded its slowest expansion in 18 months during the first quarter. The vote was unanimous.

Cambridge Analytica closes down amidst Facebook data use scandals
Cambridge Analytica sought information on Facebook to build psychological profiles on a large portion of the US electorate. Facebook has since apologised and tightened its privacy restrictions.

Many on Wall Street think the economy is accelerating so quickly that the Fed will have to hike rates three more times in 2018 to keep the economy from overheating. Most officials expected three increases next year. Back in the US, the Federal Reserve now forecasts two more rate hikes this year, while an increasing number of policymakers see three as possible. That was down from 2.9 percent in the fourth quarter even though the tax cuts kicked in on January 1. Congress and the White House also agreed to increase federal spending over the next two years. The critics charged that those policies would eventually produce destructive bubbles in the prices of stocks and other assets and, eventually, undesirably high inflation.

Fed watchers had expected the Fed to acknowledge that inflation is moving higher, after lagging.

Labor markets remain tight. That is even while there is strong growth in hiring and in investment. This bullish outlook is being driven in part by America's robust labour market, where joblessness is seen falling as low as 3.6 per cent in the coming years from its current 4.1 per cent rate.

And Fed participants have discussed tolerance for an overshoot on inflation, not that numbers are near its 2% target.

Gold rose, then fell into the red in after hours trading and oil edged higher and the Aussie dollar traded at just over 75 USA cents. It omitted earlier language that the economy has strengthened in recent months. The jobless rate held steady at 8.5% in March, the lowest since December 2008. The firming in inflation numbers could make it harder to maintain that position.

In a post to Twitter, President Donald Trump said, ?Our great financial team is in China trying to negotiate a level playing field on trade!?

Recommended

  • [Breaking] Seoul dismisses possible reduction of US troops in S

    [Breaking] Seoul dismisses possible reduction of US troops in S

    Kim reiterated his commitment to denuclearisation during the talks with Wang, according to China's account of the meeting. Wang told Kim that North Korea had seized the day and made a decisive decision, bringing positive changes.
    NZ unlikely to copy Scotland's alcohol pricing

    NZ unlikely to copy Scotland's alcohol pricing

    At midnight tonight, new pricing rules to discourage problem drinking will increase the prices of alcohol in Scotland. Alcohol misuse costs Scotland £3.6 billion each year - that's £900 for every adult in the country.
    WhatsApp gets group video calls, video chat coming to Instagram

    WhatsApp gets group video calls, video chat coming to Instagram

    If a user you follow likes to occasionally bulk upload, muting their profile, rather than unfollowing them, may be beneficial. This would archive all your Stories, so you can see what you posted on which day of the month and view them back.
  • PM for speedy assistance to those hit by dust storms

    PM for speedy assistance to those hit by dust storms

    In Rajasthan , 27 people were killed and several injured after a powerful dust storm swept through the state. Over 80 people have reportedly been killed in accidents across different regions.
    United States  crude oil inventories increase as prices climb

    United States crude oil inventories increase as prices climb

    The most likely path to rebalancing of the oil market is likely to involve a combination of some or all of these factors. But experience suggests such large imbalances between production, consumption and inventories are not stable for long.
    US, China high-level talks begin to avert trade war

    US, China high-level talks begin to avert trade war

    The Asian Development Bank's chief says trade in Asia, growing at a fast clip since 2017, could be disrupted if disputes escalate. China has responded by doing the same, largely focused on agricultural industries in the American heartland.
  • British politics: Windrush brings down a minister

    British politics: Windrush brings down a minister

    Javid on Monday (Tuesday NZT) said that his "most urgent" task was to help those unfairly caught up in the Windrush fiasco. Labour's finance spokesman John McDonnell said: "You can smell the undoubted odour of a government decomposing ".
    Russian Su-30SM Fighter Jet Crashes in Syria Killing Pilots

    Russian Su-30SM Fighter Jet Crashes in Syria Killing Pilots

    Moscow also runs a naval facility in the Syrian city of Tartus, which is similarly situated in the Arab country's west. According to that story, there was a violent roar at the moment of the impact of the military plane against the sea.
    Tiger Woods ready to return to work at Quail Hollow

    Tiger Woods ready to return to work at Quail Hollow

    He boasts top-5 ranks in strokes gained: tee to green and birdies or better gained, and he is 9th in strokes gained: par 4's. They quickly chatted with each other and the fan's girlfriend, Andrea. "And after that, getting ready for Shinnecock".
  • Arsenal boss Arsene Wenger REJECTS PSG offer and wants France job

    Arsenal boss Arsene Wenger REJECTS PSG offer and wants France job

    City passed the 100-goal mark in the Premier League and within touching distance of a number of milestones. City beat West Ham 4-1 and is in sight of a slew of records.
    U.S.  ambassador to Israel slams Abbas for anti-Semitic speech

    U.S. ambassador to Israel slams Abbas for anti-Semitic speech

    Abbas's office later acknowledged that the reports on which his comments had been based had proved without foundation. In 1982 Abbas obtained a doctorate in history at the Moscow Institute of Orientalism in the then-Soviet Union.
    Snapchat's much-hated redesign scared advertisers and

    Snapchat's much-hated redesign scared advertisers and "disrupted" behavior

    Revenue stood at $230.7m (£169.4m) in the first quarter of this year, up 54 per cent on last year thanks to the grow of Snap Ads. Snap stock is already down more than 16% after-hours following the earnings report.

Tiger Woods trails by six after putting woes at Quail Hollow Tiger Woods trails by six after putting woes at Quail Hollow Tiger Woods is thankful to return to competitive golf after lumbar fusion surgery alleviated pain from a damaged disc in his back. Tiger Woods is the main draw in an impressive field at this year's Wells Fargo Championship at Quail Hollow Club in Charlotte .

Balotelli attacks Kanye West for 'bull***t' slavery comments Balotelli attacks Kanye West for 'bull***t' slavery comments Owens is also the person who the rapper acknowledged on Twitter last week and said he likes the way she thinks. Brother seriously, who brainwashed you? "It was just an idea", he wrote in another now-deleted tweet .

Twitter advises its 336 million users to change their passwords Twitter advises its 336 million users to change their passwords After entering your (newly revised) password to confirm that you want to make changes, you'll land on a Login verification screen. Twitter twtr CEO Jack Dorsey followed Agrawal's post by tweeting that company has "no indication of breach or misuse".

Amazon makes bid to spoil Walmart-Flipkart deal Amazon makes bid to spoil Walmart-Flipkart deal According to a Bloomberg report , SoftBank is going to sell over 20 per cent stake in Flipkart at a valuation of $20 billion. Emails sent to Flipkart and Walmart did not elicit any response.

Officers injured after explosion at barricade scene in Connecticut Officers injured after explosion at barricade scene in Connecticut One of the first responders work the scene of an explosion and reported stand-off in North Haven, Conn ., Wednesday, May 2, 2018. A fire then burned other structures at the property; they were "mostly extinguished" by Thursday morning, police said .

Samsung narrows profitability gap with Apple Samsung narrows profitability gap with Apple Apple grew iPhone shipments by 3% year on year by maintaining its shipment strength in its key markets, the U.S. and China . For the first time in five years, smartphone shipments dipped below 100m in the first quarter of this year.

Macron's visit a timely opportunity to act on Iran's nuclear program Macron's visit a timely opportunity to act on Iran's nuclear program While not naming China, Macron said France will increase its influence in the region to ensure "rules-based development". The oak comes from the site where the Battle of Belleau Wood raged in northern France in June 1918.

50-year-old National Guard plane was on final flight before crash 50-year-old National Guard plane was on final flight before crash Mariah Majors, an employee at the Carey Hilliard's on Highway 21, said she could see smoke in the air but could not see the plane. The plane reportedly belonged to the US Air Force's Air National Guard 165th Airlift Wing, which is based in Savannah.

Guterres warns against scrapping Iran nuclear deal Guterres warns against scrapping Iran nuclear deal At his briefing Monday, Israeli Prime Minister Benjamin Netanyahu stood beside a giant screen filled with two words: "Iran lied". Israeli soldiers take a break during a recent training exercise in the Golan Heights. "Plenty more in the archive", said Mr.

Bonfire Explodes During Celebrations Injuring 10 Bonfire Explodes During Celebrations Injuring 10 According to several witness reports, the explosion was caused by some mobile phones being thrown into the fire, The Sun reported. Dramatic footage shows a fire about to be lit, as revellers sing in the background just metres away last night.

UK Ministers Put Off Decision On Post-Brexit EU Customs Arrangements UK Ministers Put Off Decision On Post-Brexit EU Customs Arrangements Also present at the meeting was Conservative Party Chief Whip Julian Smith, there to explain the Parliamentary arithmetic. Both are fundamentally split, with each side strong enough to block a plan, but not to push one through.

Tesla burns cash even faster as Musk seeks to calm investors Tesla burns cash even faster as Musk seeks to calm investors In the first quarter of the year, Tesla earned more money than ever before, with total revenues hitting a record of $3.4 billion. Instead, Mr Musk took questions from YouTube vlogger and journalist Galileo Russell who was listening to the call.

Dane first to be convicted under Malaysian fake news law Dane first to be convicted under Malaysian fake news law Sulaiman said his actions were not meant to cause harm, and apologized for posting the video in a "moment of anger". Malaysia's law defines fake news as "news, information, data and reports that is or are wholly or partly false".

Trump to meet with crew, passengers of Southwest Flight 1380 Trump to meet with crew, passengers of Southwest Flight 1380 In the week following the investigation, Southwest Airlines canceled flights to perform engine inspection. Chavez claims to be suffering post-traumatic stress disorder, anxiety and depression.

Oculus Go is shipping today Oculus Go is shipping today A separate report from UploadVR this morning notes that F8 developer attendees are likely to receive Oculus Go headsets for free. A post on Reddit earlier today showcased a stack of the headsets ready to go at a Best Buy location in Arkansas.