Strategist Michael Antonelli joins Jared Blikre to break down the Fed decision and more at 2 P.M. ET Wednesday.
* May Fed meeting minutes confirm 50bp hikes likely in June, July
* Euro slips from one-month high vs dollar (Adds analyst comments, details from Fed minutes, updates prices)
By John McCrank
NEW YORK, May 25 (Reuters) – The U.S. dollar rose on Wednesday, holding most of its earlier gains after minutes from the Federal Reserve's May meeting showed that most participants believed half-percentage-point rate increases would likely be appropriate in June and July.
All participants at the May 3-4 policy meeting backed the Fed's 50 basis point rate increase this month to combat inflation they agreed had become a key threat to the economy's performance and was at risk of accelerating without central bank action, the minutes of the session showed.
"As it conducts a pair of 50 bp rate hikes during the next two months, the Fed will likely keep its cards closer to its chest, waiting to see how the outlook and risks unfold before proffering what we expect will be another strong policy signal. That is, unless further worrisome inflation developments force the Fed to lay its cards on the table.", said Michael Gregory, deputy chief economist at BMO Capital Markets.
Treasury yields were little changed after the Fed minutes. U.S. 10-year Treasury yields, which hit 3-1/2-year highs earlier in May, briefly hit six-week lows on Wednesday after data showed new orders for U.S.-made capital goods rose less than expected in April.
The U.S. dollar index, which measures the greenback against a basket of peer currencies, dipped slightly after the Fed minutes and was up 0.285% at 102.04, at 3:00 p.m. Eastern time (1900 GMT).
The dollar had fallen to a one-month low on Tuesday after European Central Bank chief Christine Lagarde flagged an end to negative interest rates in the euro zone in the third quarter, giving the euro a boost.
Lagarde's comments implied an increase of at least 50 basis points in the deposit rate and fueled speculation of bigger hikes this summer.
But while that lifted the euro to one-month highs of $1.0748 on Tuesday, it slipped 0.42% on Wednesday, to $1.0690.
ECB board member Fabio Panetta took some steam out of the single currency when he warned of a "normalisation tantrum" caused by taking interest rates to "neutral" settings.
Dutch central bank chief Klaas Knot, meanwhile, said the ECB may not discuss reducing its balance sheet this year, as it focuses on rate hikes
The euro also pulled back 0.34% against the Swiss franc , which has firmed in recent days after Swiss central bank officials said they would not hesitate to tighten policy if inflation stayed above target ranges.
Elsewhere, the Reserve Bank of New Zealand became the latest central bank to raise interest rates by half a point. While that move was expected, it also provided hawkish guidance on its policy path, noting a larger and earlier hike reduced the risk of inflation becoming persistent.
That had helped the kiwi dollar rise as much as 0.8% at one point to a three-week peak of $0.6514. But as the U.S. dollar gained momentum, the kiwi ceded most its gains, last trading up 0.3% at $0.6480.
"The RBNZ move shows central banks are not in a mood to slow down. Conditions are pretty tight in a lot of G10 economies, and it's a hint that in the short term policy tightening will remain aggressive," said Colin Asher, senior economist at Mizuho in London.
(Reporting by John McCrank in New York; additional reporting by Sujata Rao in London; Editing by Jacqueline Wong, Chizu Nomiyama, Jonathan Oatis and Marguerita Choy)
Rogers knows a thing or two about making money in turbulent times.
Nio (NYSE: NIO) stock surged Tuesday morning as the broader U.S. market rose, and was trading 10.2% higher as of 12:23 p.m. ET. Ironically, the electric vehicle (EV) maker just got a massive price target downgrade, but investors right now appear to care less about what analysts think and more about what's happening in Nio's home market of China. On Tuesday morning, Citigroup analyst Jeff Chung slashed his price target on Nio to $41.10 per share from $87 a share, according to TheFly.com.
Last month, the annualized rate of inflation hit 8.6%, the highest in more than 40 years. Last week, in response, the Federal Reserve bumped up its benchmark interest rate by 75 basis points, the largest such hike since 1994. The combination of high inflation and aggressive tightening action by the central bank sent an already jittery stock market to its worst single week since the onset of the COVID crisis, and has economists talking gloomily about a repeat of the late 1970s and early 1980s, wh
A market rally attempt gained steam as Tesla jumped but investors should be wary. Fed chief Jerome Powell is on tap again.
If you’re thinking of pulling your 401(k) out of the stock market, or you’re too terrified to invest more, you need to meet my friend Betty Badluck. Poor old Betty has had the worst luck of any stock market investor you’ve ever met. In the last 40 years she has invested in the stock market just six times.
The Federal Reserve will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest, according to economists polled by Reuters. Last week the Fed hiked the federal funds rate by three-quarters of a percentage point, its largest rate increase since 1994, after official data just a few days earlier showed inflation unexpectedly rose despite expectations it had peaked. The latest poll results, released on Wednesday before Fed Chair Jerome Powell was due to appear before the Senate Banking Committee as part of his twice-yearly monetary policy testimony to Congress, show momentum is still behind the U.S. central bank doing more, not less, despite rising recession concerns and a steep sell-off in financial markets.
Yahoo Finance crypto reporter David Hollerith joins the Live show to explain the bounce back seen in bitcoin's pricing after weeks of volatility in the cryptocurrency space and Magic Eden's rise to prominence as a crypto marketplace.
Wall Street is nervous a recession is right around the corner. But analysts think some S&P 500 companies have sunk into one already.
The Dow Jones rallied as stocks struck back. Tesla spiked even as Elon Musk issued a warning. Bitcoin bounced. Apple stock rose.
In this article, we discuss the 10 value stocks to buy today according to Mario Gabelli. If you want to skip our detailed analysis of Gabelli’s investment philosophy, hedge fund returns, and history, go directly to 5 Value Stocks To Buy Today According To Mario Gabelli. Billionaire investor Mario Gabelli is known for founding and […]
Since hitting their respective all-time closing highs, the 126-year-old Dow Jones Industrial Average, benchmark S&P 500, and growth-focused Nasdaq Composite have respectively fallen by as much as 19%, 24%, and 34%. This means the Nasdaq and S&P 500 are officially in the grip of a bear market. To make matters worse, there's the growing likelihood that the U.S. could enter a recession.
Morgan Stanley's chief executive officer James Gorman was the latest prominent executive to warn of a coming recession, saying at a June 13 financial conference, "It's possible we go into recession, obviously, probably 50-50 odds now." Ultra-high-yield dividend stocks can be a good place to run for cover during turbulent markets. Investors with an extra $134,200 in capital lying around to evenly split between these two quality income stocks could generate growing five-figure annual dividend income in the years ahead.
STOCKSTOWATCHTODAY BLOG Diamondback Energy surged on Tuesday after the oil explorer said it would increase its base dividends from $2.80 to $3 per common share annually, a 7.1% jump, beginning at the end of the month.
Elon Musk's clarification about the electric vehicle company's layoffs sent the stock higher.
(Bloomberg) — A bounce in stocks reversed in Asia Wednesday and the dollar climbed amid ever-louder warnings about the risk of an economic downturn.Most Read from BloombergLiz Cheney Is Paying the Price in Her Home State for Crossing TrumpSwitzerland Imports Russian Gold for First Time Since WarStocks Surge After $2 Trillion Wipeout; Bonds Fall: Markets WrapMortgage Lenders Timed the Market PerfectlyElon Musk Sounds Off on Recession Risk, Twitter Deal and TrumpMSCI Inc.’s Asia-Pacific share ind
Budget chain previously said it did not need online business.
Last week, the Fed’s open market committee raised its benchmark interest rate by 0.75%, the largest such increase in almost 30 years. The move marks a shift to an aggressive stance against inflation, and an attempt by the Fed to head off a potential recession. In fact, preliminary data leaked from the Atlanta Fed earlier in the week showed that the US is in a technical recession. While official numbers won’t be released until after the second quarter ends, the early numbers show that 2Q22 will e
Tesla boss discussed deal at the Qatar Economic Forum
The NASDAQ Composite Index has declined by close to 32% year-to-date to enter its second bear market in less than three years. Although stock prices have come down significantly for a wide swath of businesses, you should not feel disheartened. Here are three stocks you can consider buying during this bear market in technology stocks.
With returns edging closer to what you’d see in the stock market, savings bonds are becoming a tempting alternative.
Multірlе оnlіnе trading platforms hаvе еmеrgеd оn thе іntеrnеt, but very fеw hаvе mаnаgеd tо ѕtаnd out from the mаѕѕеѕ....