On Wednesday, September 18, a television station broadcast Federal Reserve Chairman Powell’s speech after the Federal Open Market Committee (FOMC) meeting at the New York Stock Exchange (NYSE).
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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. Pan-European Stoxx 600 rose 0.4%. german bank stocks Commerzbank Stocks fell about 5.7% after criticism from German Chancellor Olaf Scholz UniCredit Bank The accumulation of Commerzbank shares is “hostile”.
slow and thoughtful
Minneapolis Fed President Neel Kashkari thinks the central bank will Easing monetary policy more prudently This follows last week’s sharp rate cut. “I think after 50 basis points we’re still in a net tight position,” Kashkari told CNBC. “So I would be happy to take a bigger first step and then as we move forward, I expect, Overall, we will likely take smaller steps unless the data changes significantly.”
New benefits for Boeing employees
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.
Sluggish demand for lux
European luxury goods stocks plunged on Monday Chinese consumers reduce luxury purchasesjoining its American, European and Japanese counterparts. Analysts at Bank of America Securities said luxury goods consumers around the world have “sold them all out.” shares Prada down 4.74%, dry down 1.5% Burberry down 0.89%.
(PRO) Value stocks are back in fashion?
Prominent investor Bill Nygren says the S&P 500 is no longer as diversified as it once was because the trade in large-cap tech stocks has become too crowded. To counter that, Nygren, a portfolio manager at Oakmark Funds for 40 years, is looking at value stocks like this one cheap finance company.
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 shows that economic conditions require more support from interest rate cuts.
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.
