Bank of America economists last week had projected that the Federal Reserve wouldn't cut interest rates at a meeting later this month - a remarkable out-of-consensus call by the second-largest U.S. bank. But after Fed Chairman Jerome Powell's testimony on Wednesday before the House of Representatives, the economists now say there's little point in resisting the central bank's apparent resolve to move forward with a reduction.
But trading calls and puts in Amazon requires you to know your risk tolerance big-time.
Jerome Powell juiced the stock market a bit, even after the market had fully priced in an interest rate cut.
This appears to be one of the most spirited debates within the Fed in several years.
U.S. Rep. Maxine Waters, a California Democrat who heads the House Financial Services Committee, tells Federal Reserve Chair Jerome Powell that regulators aren't prepared for the emergence of cryptocurrencies, amid gnawing fears that Facebook's proposed digital currency, Libra, might serve to erode the supremacy of the U.S. dollar in the global financial system.
Former Federal Reserve economist and adviser tells TheStreet what the Fed is likely to do with interest rates.
The European Commission trimmed its growth forecast for the single currency economy next year, Wednesday, citing uncertain U.S. trade policy as a key near-term risk, but noted that each of its member states is likely to continue expanding despite the weakening backdrop.
Federal Reserve Chairman Jerome Powell faces questions from U.S. lawmakers Wednesday, but his remarks on the fate of domestic interest rates, and the underlying strength of the American economy, will be keenly watched by investors around the world.
Futures-market investors see it as an absolute certainty that the Federal Reserve will cut interest rates later this month. But a few bold economists, including Pantheon's Ian Shepherdson, say the conviction isn't warranted.