India in a much better position to handle taper now than 2013: Former RBI governor D Subbarao

India is better positioned now to face any tapering of bond purchases by the Federal Reserve leading to a financial market gyrations than it was in 2013 when he was the governor of the Reserve Bank of India, said D Subbarao. Besides a much better current account and fiscal deficit position now, the country has … Read more

5 world market themes for the week ahead

Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them. 1 GERMANY‘S ‘MUTTI’ BOWS OUT Sunday’s German election is a close call and stakes for Europe’s biggest economy couldn’t be higher. After 16 years of steady, centre-right leadership, Chancellor Angela Merkel … Read more

Stocks to fall if Biden drops Powell at Fed, economists say

By Steve Matthews and Sarina Yoo Investors may need to hunker down for a slump in US stocks if President Joe Biden opts for a surprise choice and doesn’t renominate Jerome Powell as Federal Reserve chair. Nearly 90% of the economists surveyed by Bloomberg expect Biden to keep Powell in the job, an overwhelming number … Read more

Mark Mobius says hold 10% in gold as currencies will be devalued

By Abhishek Vishnoi and Ranjeetha Pakiam Veteran investor Mark Mobius said investors should have 10% of a portfolio in gold as currencies will be devalued following the unprecedented stimulus rolled out to fight the coronavirus pandemic. At this stage, “10% should be put into physical gold,” said Mobius, who set up Mobius Capital Partners after … Read more

Stocks in Powell’s thrall can see a taper without much tantrum

Cut stimulus, and say goodbye to the stock market’s armor. That’s been the bet for a decade. Now the moment has come. But no signs of catastrophe have arisen. Bulls can thank the stagecraft of Jerome Powell, the Federal Reserve chairman, who on Friday gave the strongest signal yet that the central bank will begin … Read more

Fed minutes show most officials see inflation goal in hand

Federal Reserve officials widely concluded that they had attained their inflation goal while still needing progress on their employment mandate, the record of their July meeting showed. “Most participants judged that the Committee’s standard of ‘substantial further progress’ toward the maximum-employment goal had not yet been met,” minutes of the Federal Open Market Committee’s July … Read more

Key Fed official sees rates liftoff in 2023 as policy debate heats up

WASHINGTON: The contours of debate within the U.S. central bank over when to dial back support for the economy burst into the open on Wednesday as a key architect of the Federal Reserve‘s new policy strategy said he feels the conditions for raising interest rates could be met by the end of 2022. “Commencing policy … Read more

Fed’s taper timing depends on progress on jobs: Brainard

The Federal Reserve needs to see more improvement in the pandemic-hammered U.S. labor market before pulling back on support for the economy, Fed Governor Lael Brainard said on Friday, adding that she’ll be more confident in judging that progress once she has September data in hand. “The determination of when to begin to slow asset … Read more

US economy contracted 19.2% during COVID-19 pandemic recession

The U.S. economy contracted at a record average annualized rate of 19.2% from its peak in the fourth quarter of 2019 through the second quarter of 2020, government data showed on Thursday, confirming that the COVID-19 recession was the worst ever. The pace of recovery from the pandemic downturn, the deepest going back to 1947, … Read more

Fed officials saw progress toward taper move, minutes show

Federal Reserve officials expected to continue to make progress on reaching its threshold to scaling back their massive asset purchases, a record of their June gathering showed. “The Committee’s standard of ‘substantial further progress’ was generally seen as not having yet been met, though participants expected progress to continue,” according to minutes from the June … Read more