Secret to 2023 stock rally? Central banks have provided $1 trillion liquidity boost.
Gains for global equities have left many on Wall Street perplexed as stocks — especially high-risk growth names with little or no profits — have rebounded from last year’s punishing selloff, resisting both the pull of more attractive bond yields, and the threat of higher interest rates. But some Wall Street analysts say they’ve found […]
‘The U.S. housing market is crumbling under the weight of higher mortgage rates and rock-bottom affordability’: Prices fell the most in these U.S. states
Americans are finding it hard to afford homes at mortgage levels now beyond 7%, according to some measures. Home prices have begun to reflect that. As mortgage rates rose in the last quarter of 2022, Americans found the cost of homeownership increasingly challenging, adding hundreds of dollars in interest to their potential monthly mortgage payment. […]
Risk of ‘wrathful Old Testament–style’ reaction from central banks is rising, JPMorgan says
The “gentle and forgiving path” taken by developed-market central banks to rein in inflation over the past year is likely to prove unsuccessful and trigger the need for more forceful, biblical-type action.That’s the view of economists Bruce Kasman, Joseph Lupton and Michael Hanson of JPMorgan Chase & Co. JPM, +1.10%, who described the response of […]
Strategist who loves challenging consensus sticks by call for 8% fed-funds rate
Dominique Dwor-Frecaut, a former associate with the New York Fed and outlier from the rest of the financial-market pack, is standing by a bold call she made a year ago: She says the Federal Reserve needs to hike its benchmark interest rate to 8%, versus the current level of 4.5%-4.75%, to stabilize inflation and could […]
Why January’s CPI report could deal a massive blow to the stock market
The stock market’s start-of-year rally is poised to fizzle if a highly-anticipated U.S. inflation report on Tuesday dashes hopes for a quicker retreat in the cost of living in America, warned market analysts. The January CPI reading from the Bureau of Labor Statistics, which tracks changes in the prices paid by consumers for goods and […]
Fed’s Inflation Fight Pushes Up Cost of U.S. Debt
EconomyU.S. EconomyRepublicans and Democrats disagree on whether debt load is manageable Source link
Fed Officials Signal Higher Interest Rates Will Be Needed to Contain Inflation
A senior Federal Reserve official said the economy will need higher borrowing costs for a few years to bring down inflation and prevent price pressures from strengthening. “We still have some work to do to get interest rates in the right place,” said New York Fed President John Williams at The Wall Street Journal’s CFO […]
Banks Borrow Unsecured Cash at Record Clip While Deposits Flee
MarketsDeposits at U.S. lenders fell in two consecutive quarters last year for the first time in over a decade Source link
U.S. consumer credit grows at slowest pace in two years in sign of economic worries
The numbers: The amount of credit consumers used in December rose by a scant 2.9% — the smallest uptick in more than two years — as Americans tightened their belts in response to a slowing economy. Consumer credit rose by $11.6 billion in the final month of 2022, Federal Reserve data showed. Economists had expected a […]
Market Rally Stirs Concerns It Could Feed Inflation
MarketsFinanceEconomists disagree about importance of market-driven financial conditions relative to Fed’s interest rates Source link