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

Jobs Report Keeps Federal Reserve on Track for 0.5-Point Rate Rise

Jobs Report Keeps Federal Reserve on Track for 0.5-Point Rate Rise

Fed officials have warned in recent days that they are likely to lift rates to and hold them at levels high enough to slow economic activity and hiring to bring inflation down from 40-year highs. The employment report showed continued strong hiring and brisk wage growth, which is a source of concern to Fed officials … Read more

Home Buyers Could Soon Get $1 Million Mortgage With 3% Down Payment

Home Buyers Could Soon Get  Million Mortgage With 3% Down Payment

To qualify for a $1 million mortgage, Americans typically have to make a down payment of at least 20% of the home’s price. Starting next year, some buyers could put as little as 3% down. The cap for home loans backed by Fannie Mae FNMA 3.04% and Freddie Mac FMCC 2.88% rises to $1,089,300 next … 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

Dow Drops Nearly 500 Points on China Protests, Fed Comments

Dow Drops Nearly 500 Points on China Protests, Fed Comments

U.S. stocks pulled back Monday, pushed down by widespread protests across China and hawkish comments from Federal Reserve officials about the path of interest-rate increases.  The S&P 500 fell 62.18 points, or 1.5%, to 3963.94. The Dow Jones Industrial Average lost 497.57 points, or 1.4%, at 33849.46. The Nasdaq Composite declined 176.86 points, or 1.6%, … Read more

Chinese Protests Put Xi Jinping in a Bind

Chinese Protests Put Xi Jinping in a Bind

President Xi Jinping faces a difficult choice between loosening China’s zero-tolerance Covid-19 policy or doubling down on restrictions that have locked down neighborhoods and stifled the country’s economy over the past three years. Neither option is a good one for a regime focused on stability. Stock markets around the globe and oil prices declined Monday … Read more

Fed Minutes Show Most Officials Favored Slowing Rate Rises Soon

Fed Minutes Show Most Officials Favored Slowing Rate Rises Soon

WASHINGTON—Most Federal Reserve officials thought they should slow the pace of interest-rate increases after approving a 0.75-percentage-point rate rise at their meeting earlier this month to battle high inflation. Their discussion at the meeting, described in minutes of the gathering released Wednesday, suggests they could downshift to a rate rise of 0.5 percentage point, or … Read more

Central banks must buy bitcoin to hedge against sanctions: Harvard Ph.D. candidate

Central banks must buy bitcoin to hedge against sanctions: Harvard Ph.D. candidate

A research paper published at Harvard University is advocating that central banks should buy bitcoin BTCUSD, +2.56% as a hedge against sanctions by other countries. The paper, titled “Hedging Sanctions Risk: Cryptocurrency in Central Bank Reserves,” was authored by Ph.D. candidate Matthew Ferranti from Harvard’s economics department, and likens central banks’ gold reserves to potential … Read more

Saudi Arabia Eyes OPEC+ Output Increase Ahead of Restrictions on Russian Oil

Saudi Arabia Eyes OPEC+ Output Increase Ahead of Restrictions on Russian Oil

Saudi Arabia and other OPEC oil producers are discussing an output increase, the group’s delegates said, a move that could help heal a rift with the Biden administration and keep energy flowing amid new attempts to blunt Russia’s oil industry over the Ukraine war. A production increase of up to 500,000 barrels a day is … Read more

China Dials Back Property Restrictions in Bid to Reverse Economic Slide

China Dials Back Property Restrictions in Bid to Reverse Economic Slide

For much of the past year, China’s economy has been reeling under Xi Jinping’s dual campaigns to rein in soaring property prices and to stamp out any traces of Covid-19 within the country’s borders. Now, as he moves to loosen pandemic restrictions, China’s leader, Mr. Xi, is signaling a reversal of his real estate crackdown, … Read more