U.S. interest rate traders have made their strongest challenge to date against the Federal Reserve's signalling of two more rate hikes in 2019, with investors now betting on a near-term cut in the benchmark rate following sharp slowdown in manufacturing activity in the world's two biggest economies.
A government report this week is expected to show that the economy added about 180,000 jobs last month, an increase from the 155,000 jobs added in November but below the average 206,000 jobs per month added during all of 2018.
U.S. government bond yields fell sharply Thursday after a key reading of manufacturing activity for the month of December notched its biggest decline in a decade, following on from weaker factory data in major economies around the world.
The Federal Reserve Bank of Atlanta's GDPNow computer-based economic forecaster gets uncannily accurate roughly a month before official quarterly data releases on gross domestic product. The latest projection for a 2.7% fourth-quarter reading could confirm traders' fears that the stimulus from President Donald Trump's tax cuts is fading.
This year, we need a new way of thinking about how Fed policy will evolve.
U.S. Treasury bond yields tumbled Wednesday, taking benchmark 10-year borrowing costs to the lowest levels in more than 11 months, as a slowdown in global manufacturing activity, alongside the prospect of an extended U.S. government shutdown, triggers safe-haven flows in markets all over the word.
Let's see what's in store for TLT, WTIC and GLD early in the new year.
The partial U.S. government shutdown, would could cost taxpayers more than a billion dollars a week, entered its sixth day Thursday with President Donald Trump vowing to do "whatever it takes" to secure funding for a wall he claims is desperately needed along the U.S. border with Mexico.
Here is some advice on what we can expect next from the Trump administration -- and how to position your portfolio for these wild swings.
The Federal Reserve definitely is more confident in its forecasts than it should be based on its track record over the last decade.