News

The Fed and the Treasury are butting heads over more emergency relief at a time when spiking virus cases make cooperation more important than ever

The nation’s top two economic-policy officials locked horns on Thursday, a rare public disagreement as the coronavirus pandemic worsens and the pace of economic recovery weakens. Treasury Secretary Steven Mnuchin called for the Federal Reserve to return funds allocated to a spate of emergency lending facilities, leaving five programs to […]
The Fed and the Treasury are butting heads over more emergency relief at a time when spiking virus cases make cooperation more important than ever
News

‘We’re not going back to the same economy’: The rise of technology poses risks to low-paid service workers amid the ongoing recovery, Fed Chair Powell says

The US economy won’t return to the exact same state it was in before the pandemic, Federal Reserve Chair Jerome Powell said Thursday. The health crisis is accelerating digitization throughout the economy, and Americans already slammed by the virus’s fallout are at the highest risk of losing their jobs, he […]
‘We’re not going back to the same economy’: The rise of technology poses risks to low-paid service workers amid the ongoing recovery, Fed Chair Powell says
Markets

Dow plunges 411 points as withering stimulus hopes prompt late sell-off

US stocks extended losses into Monday’s close as a lack of stimulus progress cut into hopes for a pre-election deal. House Speaker Nancy Pelosi expedited talks on Sunday, setting a 48-hour deadline for the White House and Democrats to ink a deal. She later told Democrats that significant obstacles in […]
Dow plunges 411 points as withering stimulus hopes prompt late sell-off
Markets

US stocks climb after retail-sales data trounces expectations

US stocks gained on Friday as investors cheered a better-than-expected reading of September retail sales. American retail spending climbed 1.9% last month, more than doubling economist estimates. The reading marks the gauge’s fifth straight increase and a sharp bounce from August’s 0.6% gain. The encouraging economic data offset dwindling odds […]
US stocks climb after retail-sales data trounces expectations
News

US weekly jobless claims rise to 898,000 as labour-market recovery stumbles

New US jobless claims for the week that ended Saturday totaled 898,000, the Labour Department said Thursday. The reading came in above the consensus economist estimate of 825,000, and also marks an increase from the previous week’s revised figure. Continuing claims, which track Americans receiving unemployment benefits, fell to 10 […]
US weekly jobless claims rise to 898,000 as labour-market recovery stumbles
Markets

Dow gains 251 points as tech giants rally and stimulus hopes persist

US stocks rose on Monday as Democrats and Republicans inched closer to a stimulus compromise. Mega-cap companies including Apple and Amazon led indexes higher as investors rushed to the growth favourites. President Trump urged Republicans to speed up Amy Coney Barrett’s confirmation to the Supreme Court so that they can […]
Dow gains 251 points as tech giants rally and stimulus hopes persist
Markets

US stocks climb as revived stimulus talks trudge ahead

US stocks rose on Monday as Democrats and Republicans inched closer to a last-minute stimulus compromise. The Trump administration lifted its proposal to $US1.8 trillion from $US1.6 trillion on Friday, inching closer to the Democrats’ preferred $US2.2 trillion size. Still, House Speaker Nancy Pelosi deemed the bill “one step forward, […]
US stocks climb as revived stimulus talks trudge ahead
Markets

US stocks rise as investors weigh latest comments on stimulus progress

US stocks gained on Thursday on revived hopes for near-term stimulus and on jobless claims that declined week-over-week. President Donald Trump indicated in a tweet late Tuesday that he backed a piecemeal strategy for passing smaller stimulus measures. The news boosted equities Thursday morning, but indexes pared gains after House […]
US stocks rise as investors weigh latest comments on stimulus progress
Markets

The Fed warned of ‘tragic’ consequences if the US didn’t do more to support its economic recovery. Hours later, Trump killed talks about more stimulus.

Federal Reserve Chair Jerome Powell on Tuesday made his most pronounced call yet for additional relief spending, saying that the risks of passing too little stimulus far outweighed the risks of overspending and that a diminished rebound would be “tragic.” Hours later, President Donald Trump said in a tweet that […]
The Fed warned of ‘tragic’ consequences if the US didn’t do more to support its economic recovery. Hours later, Trump killed talks about more stimulus.
Markets

Dow plummets 400 points as Trump halts stimulus talks until after election

US equities plummeted on Tuesday after President Trump abruptly halted stimulus talks until after the November 3 election. “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill,” Trump tweeted Tuesday afternoon. Major stock indexes gained […]
Dow plummets 400 points as Trump halts stimulus talks until after election
Markets

US stocks trade mixed as investors await economic-outlook speech from Fed’s Powell

US stocks traded mixed on Tuesday as investors waited for economic-recovery commentary from Federal Reserve Chair Jerome Powell. The central bank chief is expected to reemphasize the importance of fiscal stimulus to the nation’s rebound. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to continue stimulus negotiations […]
US stocks trade mixed as investors await economic-outlook speech from Fed’s Powell
Markets

Dow leaps 410 points as revived stimulus hopes drive new recovery bets

US equities surged on Monday as investors’ hopes for a smooth economic rebound outweighed rising coronavirus cases. Bank stocks led major indexes higher, marking a sharp pivot from the tech-led rallies seen throughout the summer. Investors cheered weekend comments from House Speaker Nancy Pelosi indicating that a last-minute stimulus measure […]
Dow leaps 410 points as revived stimulus hopes drive new recovery bets
Markets

Coronavirus fallout has erased $3.5 trillion in workforce income, UN agency says

A new report from the International Labour Organisation details worse-than-expected damage in the global labour market and forecasts pain lasting through the fourth-quarter of 2020. The United Nations agency expects working-hour losses to remain elevated through the third quarter at 12.1%, or 345 million full-time-equivalent jobs. Global labour income is […]
Coronavirus fallout has erased $3.5 trillion in workforce income, UN agency says
Markets

US household net worth hits all-time high on surging stocks and stimulus help

Household net worth surged a record $US7.6 trillion in the second quarter to its highest level ever, according to Federal Reserve data published Monday. The gains were mostly fuelled by the stock market’s rapid bounce-back and relief spending included in March’s CARES Act. Equities alone added $US5.7 trillion to households’ […]
US household net worth hits all-time high on surging stocks and stimulus help
Markets

The Fed’s money-pumping efforts are driving a new economic cycle that’s reminiscent of 2009, Canaccord Genuity says

The Federal Reserve’s liquidity-boosting measures place the economy on track for a 2009-style upswing, Canaccord Genuity analysts said in a Thursday note. Policymakers signalled on Wednesday the central bank will hold rates near zero through 2023, and maintained asset purchases of at least $US120 billion in Treasurys and mortgage-backed securities […]
The Fed’s money-pumping efforts are driving a new economic cycle that’s reminiscent of 2009, Canaccord Genuity says
Markets

Dow jumps 373 points as stimulus hopes blot out weak jobs data

US stocks climbed on Wednesday as investors maintained optimism for a bipartisan stimulus measure. Democrats and the Trump administration hope to reach a deal by the end of the week but remain split on issues including expanded unemployment benefits and aid for state and local governments. Fears of rising US-China […]
Dow jumps 373 points as stimulus hopes blot out weak jobs data
News

Top House Republican says 2nd round of coronavirus stimulus likely won’t pass until August — endangering a key expansion to unemployment benefits

A second coronavirus stimulus bill will likely not pass until August, House Minority Leader Kevin McCarthy said Tuesday on CNBC’s “Squawk Box.” The $US600-per-week expansion to unemployment benefits is set to expire in July, pulling a key lifeline for millions of jobless Americans. Democrats and Republicans have yet to agree […]
Top House Republican says 2nd round of coronavirus stimulus likely won’t pass until August — endangering a key expansion to unemployment benefits
Markets

Relief measures should soon prioritise long-term employment, inflation goals over stabilisation, Fed official says

The Federal Reserve will soon need to pivot from its immediate relief measures to long-term efforts to reach unemployment and inflation goals, central bank governor Lael Brainard said Tuesday. Soaring coronavirus case counts present significant downside risks, she said in a videoconference with the National Association for Business Economics, and […]
Relief measures should soon prioritise long-term employment, inflation goals over stabilisation, Fed official says
Markets

Fed officials pushed for clearer guidance on future policy, meeting minutes show

Federal Reserve officials called for detailed forward guidance and mulled additional policy tools during their June meeting, according to minutes released Wednesday. Policymakers expect “highly accommodative monetary policy” to last “for many years” until the economy poses a robust recovery. Central bankers agreed clearer forward guidance is “important” to effectively […]
Fed officials pushed for clearer guidance on future policy, meeting minutes show
Markets

Fed’s Powell says bank’s corporate-credit ETF purchases will give way to individual bond buying

The Federal Reserve’s corporate-credit relief will move from exchange-traded fund purchases to taking in individual bonds, chairman Jerome Powell said Wednesday. Targeted bond purchases are “a better tool for supporting liquidity and market functioning,” Powell told the House Financial Services Committee. The statement follows the central bank announcing Monday it […]
Fed’s Powell says bank’s corporate-credit ETF purchases will give way to individual bond buying
Markets

The Fed begins purchases of up to $250 billion in individual corporate bonds

The Federal Reserve announced Monday it will begin purchases of individual corporate bonds. The move comes nearly three months after first unveiling the Secondary Market Corporate Credit facility and one month after it began buying corporate-credit ETFs through the program. The central bank will “create a corporate bond portfolio that […]
The Fed begins purchases of up to $250 billion in individual corporate bonds
Markets

The Fed won’t use negative interest rates to counteract the coronavirus recession, chairman Jerome Powell says

The Federal Reserve remains averse to negative interest rates despite the gloomy economic backdrop, Chairman Jerome Powell said Wednesday. The US economic trajectory is still “highly uncertain and subject to significant downside risks,” and additional aid is likely necessary stage a recovery, Powell added in a videoconference with the Peterson […]
The Fed won’t use negative interest rates to counteract the coronavirus recession, chairman Jerome Powell says
Markets

6 Fed officials spoke out last week about the looming economic recovery. Here’s why they expect it to be bumpy and pose new risks.

Federal Reserve officials took to videoconferences, TV appearances, and interviews last week to offer their take on the ailing US economy and what must be done to save it. Vice Chair Richard Clarida and Minneapolis Fed President Neel Kashkari agreed that the coronavirus’ labour-market fallout is likely worse than already-dismal […]
6 Fed officials spoke out last week about the looming economic recovery. Here’s why they expect it to be bumpy and pose new risks.
Markets

Relief loans are going to areas with pre-existing bank relationships instead of most infected regions, Fed economists find

Paycheck Protection Program, or PPP, loan approvals are more concentrated in areas with existing small business-bank partnerships instead of regions hit hardest by the coronavirus, Federal Reserve Bank of New York economists wrote Wednesday. Virus hotspots including New York, New Jersey, Michigan, and Pennsylvania are receiving fewer PPP loan approvals […]
Relief loans are going to areas with pre-existing bank relationships instead of most infected regions, Fed economists find
Markets

‘I will be watching carefully’: Elizabeth Warren just put the Treasury Department and Federal Reserve on notice about the $500 billion corporate bailout fund

Warren sent a letter to Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell on Tuesday, pressing them to ensure stimulus money for corporations is responsibly used. “I will be watching carefully as you hand out these funds,” Warren wrote. A battle is brewing among top Democrats and the […]
‘I will be watching carefully’: Elizabeth Warren just put the Treasury Department and Federal Reserve on notice about the $500 billion corporate bailout fund
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