JACKSON HOLE, Wyo. (Reuters) – Two top Federal Reserve officials who have pressed for interest rate hikes said on Friday that a spate of violent swings in financial markets won’t knock the U.S. economy off its feet.
“The U.S. outlook still looks very good,” St. Louis Fed President James Bullard told Bloomberg in an interview from Jackson Hole, Wyoming, where central bankers from around the world are converging for an annual meeting.
JACKSON HOLE, Wyo. (Reuters) – Wild swings in world financial markets this week have shown how events in China can potentially disrupt the Federal Reserve’s carefully scripted policy plans. The turmoil, triggered by a rout in Chinese markets, also flagged a broader risk that the U.S. central bank may struggle to meet its inflation target until the rest of the world plays along.
As they try to nudge U.S. interest rates away from zero, policymakers might have to rethink a basic assumption that solid economic growth and swelling payrolls at home are enough to do the job even as the world’s second-largest economy stutters.
NEW YORK (Reuters) – China’s economic slowdown should not harm Japan’s exports very much in coming years, and falling oil prices will not stop the Bank of Japan from hitting its inflation target, BOJ Governor Haruhiko Kuroda said on Wednesday.
Kuroda, addressing a New York audience, said China’s economy is likely to slow further although he predicted growth in its gross domestic product (GDP) will remain at 6-7 percent this year and next.
NEW YORK (Reuters) – An interest rate hike next month seems less appropriate given the threat posed to the U.S. economy by recent global market turmoil, an influential Federal Reserve official said on Wednesday.
In the clearest indication yet that fears of a Chinese economic slowdown could influence U.S. monetary policy, New York Fed President William Dudley said the prospects of a September rate hike “seems less compelling” than it was only weeks ago.
WASHINGTON/NEW YORK (Reuters) – Turmoil in world financial markets and growing fears of a China-led global economic slowdown threaten to derail the Federal Reserve’s plans to start raising rates from near zero, making the chances of a September lift-off look increasingly remote.
A near 9-percent dive in Chinese shares on Monday triggered sharp sell-offs in Asia and Europe, wild swings and losses on Wall Street, and knocked crude prices to new multi-year lows.
(Reuters) – An adjustment to China’s currency is probably appropriate if the Chinese economy is weaker than authorities there expected, a top Federal Reserve official said on Wednesday in the U.S. central bank’s first public response to the devaluation of the yuan.
“Obviously if the Chinese economy is weaker than maybe what the Chinese authorities anticipated, it’s probably not inappropriate for the currency to adjust in consequence to that weakness,” said New York Fed President William Dudley.
NEW YORK (Reuters) – China’s currency devaluation on Tuesday is unlikely to distract the U.S. Federal Reserve from a domestic economy that appears increasingly ready for higher interest rates.
The U.S. central bank will hope that the surprise move is not the beginning of a series of competitive devaluations that could send the dollar much higher than its slight rise on Tuesday, weakening already soft U.S. inflation, economists and Fed watchers said.
NEW YORK/WASHINGTON, Aug 7 (Reuters) – Federal Reserve
officials are growing more comfortable with the idea of
beginning to tighten policy next month, as the U.S. labor
market’s improvement makes it harder for even dovish officials
to justify historically low interest rates.
Data on Friday pointing to a firming economy and job market,
as well as comments from Fed officials, suggest weak U.S.
inflation and outside risks like China’s recent stock market
crash are unlikely to dissuade the central bank from raising
rates at a mid-September meeting.
BRIDGEPORT, NJ (Reuters) – As the Federal Reserve puzzles over what is holding back U.S. wages and productivity six years into the economic recovery, a pasta sauce company in New Jersey may offer some answers.
Chelten House Products makes private-label sauces and dressings for high-end grocers such as Whole Foods (WFM.O: Quote, Profile, Research), Trader Joe’s and Kroger (KR.N: Quote, Profile, Research), and has doubled its workforce to 300 over the past five years to keep up with a booming organic food market.
BRIDGEPORT, NJ, Aug 6 (Reuters) – As the Federal Reserve
puzzles over what is holding back U.S. wages and productivity
six years into the economic recovery, a pasta sauce company in
New Jersey may offer some answers.
Chelten House Products makes private-label sauces and
dressings for high-end grocers such as Whole Foods,
Trader Joe’s and Kroger, and has doubled its workforce to
300 over the past five years to keep up with a booming organic