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.
Futures-market investors see it as a near-certainty that the Federal Reserve will cut interest rates later this month, after raising them from 2015 through last year. But a new report from Goldman Sachs warns that shareholders in U.S. banks like JPMorgan may not have fully accounted for the risk of shrinking lending margins.
Look for Christine Lagarde to turn the ECB into a champion of fiscal stimulus.
President Donald Trump has repeatedly criticized his own Federal Reserve chair, Jerome Powell, for keeping U.S. interest rates too high, despite a projected slowing in the economy. Yet a Labor Department report Friday showed that U.S. jobs growth continued at a strong pace in June, prompting some economists to assert that drastic monetary stimulus isn't warranted.
It is an odd dynamic right now with the Fed being more important than the actual economy.
Next week I will be shorting stocks. A lot of them. I cannot wait.
A Labor Department report Friday showed the U.S. economy adding jobs at a faster-than-expected pace in June -- signaling to traders that the Federal Reserve might not need to cut interest rates sharply at a meeting later this month. Higher-than-expected interest rates could help banks' lending margins.
A report Friday from the Labor Department shows the U.S. economy added 224,000 jobs in June, following a disappointing increase of 75,000 in May. Economists had forecast a gain of 160,000 jobs.