Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, at the Milken Conference at the Beverly Hilton Hotel in Beverly Hills, California, United States on May 7, 2024 Presentation at 2024 Global Conference.
David Swanson | Reuters
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What you need to know today
Market regains momentum
US market rose monday,and S&P 500 Index and Dow Jones Industrial Average A new closing high was achieved. Asia-Pacific stocks were mostly higher on Tuesday, with China and Hong Kong markets Breaking through 3% Regarding Beijing’s announcement of easing policy measures.
Central bank policy easing
Pan Gongsheng, governor of the People’s Bank of China, announced on Tuesday Reduce bank deposit reserve ratio. This means banks no longer need as much cash on hand, injecting liquidity into the economy. In turn, the yield on Chinese bonds dropped to historical lows After the announcement by the People’s Bank of China.
China’s new real estate stimulus measures
At the same press conference, the central bank governor also said Beijing will lower existing personal housing loan interest rates The average decrease is 0.5 percentage points, and the down payment ratio for second homes is reduced from 25% to 15%. Affected by the stimulus measures, the share prices of Hong Kong-listed real estate companies have risen sharply.
Revised Boeing employee quotes
among Boeing workers strikecompany Modified the contract The proposal calls for a 30% salary increase over four years, up from the 25% previously proposed. boeing company Reinstate annual bonuses and double contract approval bonuses from $3,000 to $6,000. The union said Monday it was reviewing the proposal.
(PRO) Technology serves big technology
The rise of the artificial intelligence wave is boosting related stocks. The boom in artificial intelligence requires specialized chips, data centers and electricity. Share prices of companies in these industries rose. Japan’s Nomura Bank said the next industry to benefit from artificial intelligence is those specializing in artificial intelligence technology. Data center cooling.
bottom line
We heard a rich Commonwealth speech on Monday.
in a Interviewed by CNBCMinneapolis Fed President Neel Kashkari said, “We still have a strong, healthy labor market. But I want to keep it a strong, healthy labor market.” Kashkari on employment The emphasis on market strength suggests the Fed wants to reinforce its argument that the economy is not in recession.
Atlanta Fed President Raphael Bostic was more cautious. “The progress on the inflation front and the labor market cooling are much faster than I thought at the beginning of the summer,” he said at a separate event.
Bostic may have been surprised by the rise in unemployment, a sign that some Fed officials are genuinely concerned that the job market isn’t as strong as it should be.
Finally, Chicago Fed President Austen Goolsby said in remarks to the National Treasurer’s Association, “We should be paying more attention to the other side of the Fed’s mandate — also looking at employment risks, not just inflation. ”
Goolsby expected “more rate cuts next year” because employment conditions are “a bottom line for the state of the economy.” This suggests economic conditions require further cuts in support.
Still, yesterday’s Fed speech was quite vague and didn’t seem to cause panic.
Major U.S. stock indexes rose. this Standard & Poor’s up 0.28% Dow Chemical up 0.15%, Nasdaq Index up 0.14%. While these gains may seem small, they pushed the S&P and Dow to new closing highs.
So the narrative that central banks are doing everything they can to ensure a soft landing is very complete.
–CNBC’s Jeff Cox, Brian Evans and Alex Harring contributed to this article.
