November jobs report is most important data for inflation this year- and not in a good way

November jobs report is most important data for inflation this year- and not in a good way

The November U.S. jobs report on Friday showed the U.S. economy gained 261,000 jobs last month, with the unemployment rate holding steady at 3.7%. Economists polled by the Wall Street Journal had expected an addition of 200,000 jobs. Wages jumped 0.6% in November, double the expected pace. Below are some initial reactions from economists and … Read more

Fed’s shrinking of balance sheet via quantitative tightening is ‘a complete mistake,’ says Mizuho

Fed’s shrinking of balance sheet via quantitative tightening is ‘a complete mistake,’ says Mizuho

The Federal Reserve’s attempt at shrinking its balance sheet through so-called quantitative tightening, or QT,  is “a complete mistake,” according to Mizuho’s chief economist for the U.S. “There is a nontrivial probability that market liquidity will be adversely affected well before the targeted $2 trillion has been rolled off, preventing the Fed from accomplishing its … Read more

Fed warns of ‘low’ market liquidity in $24 trillion Treasury market, in latest financial stability report

Fed warns of ‘low’ market liquidity in  trillion Treasury market, in latest financial stability report

The Federal Reserve on Friday confirmed what many investors were saying for some time: the $24 trillion Treasury market has been experiencing low levels of market liquidity in recent months. The central bank has been rapidly increasing interest rates since March as part of a fight to bring inflation down from a 40-year high. The … Read more

U.S. inflation still running hot, key PCE price gauge shows

U.S. inflation still running hot, key PCE price gauge shows

The numbers: A key gauge of U.S. inflation rose a mild 0.3% in September, aided by the lower cost of gas. Yet prices are still going up even if they aren’t climbing as fast as they were earlier in the year. Another measure of inflation that omits volatile food and energy costs rose a sharp … Read more

Another jumbo Fed rate hike is expected next week — and then life gets difficult for Powell

Another jumbo Fed rate hike is expected next week — and then life gets difficult for Powell

First the easy part. Economists widely expect Federal Reserve monetary-policy makers to approve a fourth straight jumbo interest-rate rise at its meeting next week. A hike of three-quarters of a percentage point would bring the central bank’s benchmark rate to a level of 3.75%- 4%. “The November decision is a lock. Well, I would be … Read more

This hedge fund manager who made winning bets in 2020, says investors should brace for a decades-long bear market

This hedge fund manager who made winning bets in 2020, says investors should brace for a decades-long bear market

On the heels of last week’s bullish turn for stocks, the setup is looking slightly less positive for Monday. Hong Kong stocks may be affecting the mood with a giant slump after China’s leader cemented his power. And we’re entering Fed blackout period ahead of next week’s meeting that’s expected to deliver yet another three-quarters … Read more

Why stock-market investors fear ‘something else will break’ as Fed attacks inflation

Why stock-market investors fear ‘something else will break’ as Fed attacks inflation

Some investors are on edge that the Federal Reserve may be overtightening monetary policy in its bid to tame hot inflation, as markets look ahead to a reading this coming week from the Fed’s preferred gauge of the cost of living in the U.S.   “Fed officials have been scrambling to scare investors almost every … Read more

Elon Musk’s Twitter Takeover Debt to Be Held by Banks Amid Turbulent Markets

Elon Musk’s Twitter Takeover Debt to Be Held by Banks Amid Turbulent Markets

Banks that committed to help finance Elon Musk’s takeover of Twitter Inc. plan to hold all $13 billion of debt backing the deal rather than sell it, according to people familiar with the matter, in another blow to a market that serves as a crucial source of corporate funding. Banks would likely face losses of … Read more

Key US bond yield hits highest level since June 2008

Key US bond yield hits highest level since June 2008

New York CNN Business  —  More bad news for anyone looking to buy a home: The benchmark 10-year Treasury bond yield rose to about 4.22% Thursday afternoon, the highest level since June 2008. Mortgage rates, which are now hovering just below 7%, tend to move in lockstep with the 10-year yield. Many market experts believe … Read more

Jobless claims drop to three-week low of 214,000 as Hurricane Ian effects fade

Jobless claims drop to three-week low of 214,000 as Hurricane Ian effects fade

The numbers: The number of people who applied for unemployment benefits fell by 12,000 in mid-October to a three-week low of 214,000, as more people who couldn’t work after Hurricane Ian returned to their jobs. Economists polled by the Wall Street Journal had forecast new claims to total 230,000 in the seven days ended Oct. … Read more