Profits from some big energy companies hit a decade low. And with crude prices still declining, are their dividends safe?
The committee judged it appropriate to wait for more evidence. And wait it did. The Federal Reserve says now is not the right time to raise interest rates. But with the economy strengthening, what held them back?
Stocks that rose, then fell, then rose, and fell again as the market tried to figure out what the Fed decision means for the economy and your money. A little known company makes a big acquisition to become a real player in the fast-changing U.
But this the end, the Central Bank Chair Janet Yellen said this was not the right time to raise rates which were last hiked in Even as key parts of the economy not only recover but also strengthen.
Hampton Pearson has more on the decision and what ultimately held the Federal Reserve back.
One of the most highly anticipated Federal Reserve meetings in years ended with monetary policymakers deciding to keep interest rates at record lows, due to concerns about a weak global economy, low inflation, and financial market jitters.
In light of the developments that we have seen and the impacts on financial markets, we want to take a little bit more time to evaluate the likely impacts on the United States. But the global slowdown, the Fed now says, might impact domestic economic growth and inflation.
The price of oil has dropped again. And emerging markets are taking on more debt because of the strong dollar. We fully expect those further effects like the earlier moves in the dollar and in oil prices to be transitory. But there is a little bit of downward pressure on inflation.
And there was drama on the street as the market tried to interpret that decision by the Federal Reserve.
Stocks fell sharply after the release, then rose just as fast only to rise even further, and then drop. By the close, the Dow Jones industrial average fell 65 points to 16, Yields also fell following the decision as you can see from the chart of the year treasury note.
Well, that was something. Even though the Fed did not raise rates, they did surprise. Now, the Dow was up modestly going into the Fed announcement.
Then it dropped a bit initially. And then it rallied more than points in the following hour. Interest rate-sensitive regional bank stocks fared especially poorly, Fifth Third, Zions Bancorp, Key Corp, all of the more down, 3 percent to 4 percent. GEbut not this time. So, what exactly did happen?
Well, there is a lot of conflicting trading opinions playing out. A likely explanation is that some bought heavily on the initial announcement that the Fed would not raise rates, but traders sitting on large profits in the last few days sold heavily into it.
That makes some sense. And remember, there is also a whole school who have argued that the Fed not raising rates would send a signal that the U. Randy Kroszner joins us now for more analysis on the Fed and the economy. Good to have you with us. What is the Fed waiting for?
And is there a danger that in waiting for thing to get just perfect, they wait too long? So, there is always going to be some reason not to act. Inflation has been moving down both in the recent report and in the personal consumption expenditure index, which is the main index that they focus on.
And so, I think their concern that inflation ant quite coming back as they had expected, so they are going to be cautious.
Randy, what did we learn from the fed today in terms of what their really watching?In a new report (released August 6), the Institute for Justice (IJ) gives Puerto Rico’s eminent domain laws a grade of “F.” IJ is a nonprofit, civil liberties law firm dedicated to ending eminent domain abuse: when the government seizes private property not for traditional public uses, but for private development.
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this is "nightly business report." with tyler mathisen, and sue herera. >> oil slick. profits from some big energy companies hit a decade low. and with crude prices still declining, are their dividends safe?