Markets Right Now: Banks, technology lead United States stocks lower

President Trump Says the Federal Reserve Is a 'Much Bigger Problem Than China'

Federal Reserve Chairman Jerome Powell touched off a surge in stock prices Wednesday after saying the outlook for the US economy remains solid and interest rates are almost within a "neutral" range.

He said interest rates are "just below" their so-called neutral range, the level at which they're neither speeding up nor slowing down the economy.

When stock markets fell last month, Mr Trump blamed the Fed, accusing it of being "crazy" and "loco" for raising interest rates too fast. So far, I'm not even a little bit happy with my selection of Jay [Powell]. Not the outlook for the United States economy which, while expected to see a slower rate of growth in 2019, is still growing at a sufficient pace to justify further increases in the cost of borrowing. I'm not going to say it's so much Trump ー that Trump has been sending mean tweets about Chairman Powell.

Trump has been attacking Powell since last summer as the central bank was raising rates, and the criticism escalated last month as the stock market took a nosedive. But the latter's shift-that the Fed now is not far from the neutral rate-reflects what's happened in markets.

Fed Powell dampens expectations, but multiple rate hikes remain on the table. "And I'm not blaming anybody, but I'm just telling you I think that the Fed is way off base with what they're doing, number one".

Because of the optimistic report and no mention of potential interest rate increases in Powell's address, the Dow Jones Industrial Average rose over 400 points in midday trading on Wednesday. The BOE's Financial Policy Committee (FCP), which monitors the functionality of Britain's financial system to ensure it can fulfill its responsibilities when markets are either smooth or rocky, publishes the financial stability report which evaluates the effects of possible adverse shocks to the banking system and economy in the UK. US President Donald Trump's meeting with his Chinese counterpart Xi Jinping at the weekend is likely to hog investors' attention.

Chinese Scientist Claims First Gene Edited Babies
One problem with CRISPR editing is that it sometimes introduces mutations far from the gene at which it is aimed at correcting. He and hundreds of other scientists are gathered at the Second International Summit on Human Gene Editing in Hong Kong.

While campaigning for president in 2016, Trump had been critical of the Yellen Fed, contending that under her, the central bank was keeping rates abnormally low to try to help Democrats. In the question-and-answer period following his speech, the Fed chairman agreed with the consensus view that monetary policy's goals should remain focused on low unemployment and stable inflation rather than targeting financial markets such as stocks.

While Powell said Fed officials are monitoring these risks, they are not on the whole too anxious about them. "Of course, we will continue to monitor developments in this sector carefully", Powell said.

In the end, Powell may end up giving Mr. Trump what he wants, though not because of the president's jawboning.

Among the conclusions, he said the central bank did not see "dangerous excesses" in stock markets, while the financial system was now "substantially more resilient" than it was before the 2008 financial crisis.

While leverage can boost hedge fund returns, the Fed said it also "exposes their counterparties to risks and raises the possibility that adverse shocks would result in forced asset sales" that could drive down asset prices.

Related News:

Most liked

Former Trump lawyer Cohen pleads guilty to lying to Congress
Trump quickly went on the defensive, calling Cohen a "weak person" who is "lying" to Mueller to get a reduced prison sentence. When asked why he would hire Cohen if he's an untrustworthy and weak person , Trump said "a long time ago, he did me a favor".

YouTube to take Originals out of paywall in 2019
In a statement to Marketing , a YouTube spokesperson said it will continue to invest in scripted programming in 2019. Nevertheless, the move is still a big surprise to many considering that YouTube Premium was launched just this May .

Late Monday: Durant's 49 points carry Warriors past Magic
However, if Curry returns during this upcoming road trip, the attention may return to the league's only unanimous MVP. Both Green, out with a toe injury, and Curry are nearing returns ahead of five consecutive away games.

Northern Irish DUP rallies opposition to May's 'pitiful' Brexit deal
During her trip, Mrs May denied she had given up and stated her deal "protects the interests" of Northern Ireland. So let's wait until we get to that vote.

Jan Vertonghen set to make Tottenham comeback in Champions League
The LaLiga giants have already won the group, but Pochettino believes the Spanish outfit will still play their strongest side next month.

Baby, mother apparently killed by bear while trapping in Yukon
In a statement, the Yukon department of education said that Theoret would be dearly missed by staff and students. According to Roesholt, the family had lived in the remote cabin since August and were trapping around the lake.

Indian forces kill top Kashmir militant
The terrorists' killing was "good news for peace-loving people", police chief Dilbag Singh told reporters. However, police used tear smoke shells to disperse the protesters.

Braves, Donaldson agree to one-year deal
McCann thanked Charlie Culberson for agreeing to give up No. 16, which the utility player wore in 2018 for the Braves. In order to add Donaldson to the 40-man roster, the team has designated pitcher Adam McCreery for assignment.

Wedding festivities begin for Priyanka Chopra, Nick Jonas with puja
In a video that is going viral on social media, the royal venue can be seen decked up in dazzling blue and yellow lights. In case you aren't aware, Dwayne has worked with both Priyanka and Nick in Baywatch and Jumanji respectively.

Cavs trade Kyle Korver to Jazz
Per Woj , the picks in question are the Jazz's 2020 second round selection and a 2021 second-rounder from the Washington Wizards . Korver, 37, is averaging 6.8 points on 46.1 shooting from the field and 46.3 from beyond the arc in 15.7 minutes per game.

Poorly Elton John cancels show 20 minutes after it's due to begin
So if you have a ticket for Wednesday's show, keep it somewhere safe and be on the lookout for a future concert date. Also on Tuesday evening, John's scheduled concert for Wednesday at Amalie Arena in Tampa, Florida, was cancelled.

Pompeo says no hard evidence Saudi Prince ordered Khashoggi killing
The Pentagon had also been conducting air-to-air refueling for coalition aircraft, but this month said it was stopping doing so. Graham spoke after senators were briefed by Secretary of State Mike Pompeo and Defense Secretary Jim Mattis.

Trumps Light National Christmas Tree in DC
For a moment, it appeared the first lady had channeled husband President Donald Trump's approach to social media. She added that, for all the importance of civil behaviour: "Sometimes you need to fight back, I'm sorry".

US health officials say it's OK to eat some romaine again
The agency also commended stores and restaurants nationwide for pulling romaine until investigators could figure out the source. If you feel comfortable enough that you can tell your romaine from your iceberg (a common substitute), then you're probably OK.

AS Roma vs. Real Madrid - Football Match Report
Real are sixth in the table and six points behind surprise leaders Sevilla in an unpredictable season so far. Solari insisted that the decision to leave out Isco was purely tactical and dismissed talk of a fall-out.