Jerome Powell signals Fed to keep buying bonds even as outlook improves

By Rich Miller Federal Reserve Chairman Jerome Powell signaled that the central bank was nowhere close to pulling back on its support for the pandemic-damaged U.S. economy even as he voiced expectations for a return to more normal, improved activity later this year. “The economy is a long way from our employment and inflation goals, … Read more

Fed officials see economy ‘far from’ where it needs to be, meaning easy policy won’t change soon, minutes show

Federal Open Market Committee members at their most recent gathering reaffirmed that the central bank will be keeping policy loose well into the future, according to meeting minutes released Wednesday. With the economy continuing to shake off the effects from the Covid-19 pandemic, the committee, which sets monetary policy for the Federal Reserve, kept policy … Read more

Fiscal stimulus prospects and strong earnings tailwind may propel stocks in the week ahead

Traders work the floor of the New York Stock Exchange. NYSE Stocks head into the week ahead with a tailwind, as investors focus on a hefty fiscal stimulus package and the solid earnings season against a backdrop of rising interest rates. There are several dozen S&P 500 companies reporting earnings, including Coca-Cola, Pepsico, Cisco and … Read more

Fed maintains monetary stimulus, cites moderating recovery

By Matthew Boesler Federal Reserve officials left their benchmark interest rate unchanged near zero as they flagged a moderating U.S. recovery and reiterated a pledge to use all available tools to support the economy during the coronavirus pandemic. The central bank’s policy-making body also repeated it would maintain its bond-buying program at the current pace … Read more

Fed to avoid early exit or bond-taper signal

Federal Reserve Chair Jerome Powell is expected to maintain the central bank’s aggressive support of the US economy, despite having spied “light at the end of the tunnel” from the Covid-19 pandemic. The Federal Open Market Committee is all but certain to hold interest rates near zero at the conclusion of its two-day policy meeting … Read more

Markets will seesaw for months, Invesco’s $1.2 trillion asset manager warns

Invesco chief global market strategist Kristina Hooper sees a volatile dynamic between optimism and pessimism playing out on Wall Street. According to Hooper, it will contribute to seesaw market behavior for months. “We are going to see some pretty significant economic headwinds in the near term driven by Covid-19,” Hooper told CNBC’s “Trading Nation” on … Read more

Apple and Tesla earnings, along with the Fed and GDP will drive markets in the week ahead

A Chinese customer walks by a large screen at the official opening of the new Apple Store in the Sanlitun shopping area on July 17, 2020 in Beijing, China. Kevin Frayer | Getty Images Stimulus euphoria may be waning, but investors will have plenty to focus on in the week ahead, as a blast of … Read more

Calm stock market may be anticipating Biden’s more normal White House

U.S. President-elect Joe Biden speaks as he announces members of economics and jobs team at his transition headquarters in Wilmington, Delaware, U.S., January 8, 2021. Kevin Lemarque | Reuters Joe Biden’s inauguration next week is expected to usher in a more traditional and normal presidency, and the stock market could continue to climb, but perhaps … Read more

The Fed could disappoint markets Wednesday, even if it keeps a super dovish tone

The Fed may see a brighter long-term outlook when it releases its economic forecasts Wednesday due to vaccine developments, but it also has the opportunity to disappoint at least some investors who are expecting immediate changes in its bond buying program. The market has been divided about whether the Fed would extend the duration of … Read more

Fed Chair Powell’s work with Janet Yellen could determine whether Biden keeps him

Federal Reserve Chairman Jerome Powell holds a news conference following a closed two-day Federal Open Market Committee meeting in Washington, September 18, 2019. Sarah Silbiger | Reuters Though President-elect Joe Biden could opt to replace Jerome Powell when the Federal Reserve chairman’s term expires, some on Wall Street are optimistic the central bank chief could … Read more