Jerome Powell

Market reaction to Fed rate hike ‘almost always red herring’

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CNBC’s Jim Cramer said Friday that this week was the latest example of the market going crazy after a Federal Reserve meeting. But based on past market reactions to previous central bank rate hikes, this week’s activity may prove insignificant in the long run. The initial reaction to Fed decisions is “almost always a false … Read more

China is a “relative safe haven” in the face of banking stress

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Citi economists said: “We have long debated our view that China can be a major growth hedge this year – if anything, the recent global banking strains may have bolstered this thesis. “ The People’s Bank of China’s decision to cut its reserve requirement ratio showed “assurance of political support amid global volatilities,” Citi economists … Read more

Jerome Powell flipped the script

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Federal Reserve Board Chairman Jerome Powell holds a news conference following a meeting of the Federal Open Market Committee at the Federal Reserve on March 22, 2023 in Washington, DC. Alex Wang | Getty Images News | Getty Images This report comes from today’s CNBC Daily Open, our new international markets newscast. CNBC Daily Open … Read more

Yellen’s comments rattled the market, not the Fed’s rate hike

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CNBC’s Jim Cramer said on Wednesday the market was distracted by Janet Yellen’s remarks about bank failures rather than focusing on the stability reflected in the Fed’s rate hike. During Fed Chairman Jerome Powell’s press conference, the market fell before falling in response to Yellen’s comments, according to Cramer. CNBC’s Jim Cramer said the Federal … Read more

Financial instability as the main market risk: Wells Fargo

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A major Wall Street firm ranks financial instability over inflation as the biggest economic risk for the next three months. In an interview following the Federal Reserve’s quarter-point interest rate hike, Michael Schumacher of Wells Fargo Securities suggested that policymakers are underestimating how rapidly tightening credit conditions could hurt the economy. “The Fed doesn’t really … Read more

Bill Ackman says US did the right thing in protecting SVB depositors

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Billionaire investor Bill Ackman said the US government’s intervention to protect depositors after the Silicon Valley Bank implosion is “not a bailout” and is helping to restore confidence in the banking system. In a tweet, the Pershing Square CEO said Monday’s SVB fallout indicated the government had done the “right thing”. But not all Wall … Read more