By Reuters Staff
1 Min Read
FILE PHOTO: People take photos by the Morgan Stanley building in Times Square in New York City, New York U.S., February 20, 2020. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) - Morgan Stanley plans to increase the dividend it pays shareholders when restrictions are lifted by the Federal Reserve, according to a letter Chief Executive James Gorman sent to shareholders on Thursday.
Morgan Stanley said in December it would resume its share repurchase plan following the Federal Reserve’s decision to allow the sector to resume stock buybacks that were suspended during the pandemic.
The bank plans to buy back up to $10 billion in stock this year. In his letter posted on Morgan Stanley’s website, Gorman also set a long-term goal of achieving a return on tangible common equity (ROTCE) above 17%, according to the letter.
5 Min Read
WASHINGTON (Reuters) - The U.S. economy is heading for its strongest growth in nearly 40 years, the Federal Reserve said on Wednesday, and central bank policymakers are pledging to keep their foot on the gas despite an expected surge of inflation.
“Strong data are ahead of us,” a confident Fed Chair Jerome Powell said after a two-day policy meeting, ticking off the list of forces Fed officials expect will produce 6.5% GDP growth this year - from massive federal fiscal stimulus to optimism around the success of coronavirus vaccines.
“The (stimulus) checks are going out . COVID cases are coming down. Vaccination is moving quickly,” Powell said, marking a moment in which a body of top U.S. economic officials expect growth in the United States to rival that of China this year, not to mention surging quickly beyond that of Europe and Japan.
By Asha Sistla (Reuters) - Gold prices edged up on Wednesday to hover near their highest in more than two weeks on prospects of higher inflation, although trade was range-bound as investors exercised caution ahead of the U.S. Federal Reserve s two-day policy meet outcome. Spot gold was up 0.2% at $1,734.00 per ounce by 0310 GMT, having touched a high of $1,740.90 since March 1. U.S. gold futures were up 0.1% to $1,731.90. Gold appears to be finding few friends finally even as U.S. yields and the dollar continue to grind higher . perhaps gold s inflation hedging role is quietly returning to prominence and that is supporting prices, said OANDA senior market analyst Jeffrey Halley.
By Reuters Staff
5 Min Read
(Reuters) - Investors are laser-focused on Federal Reserve Chair Jerome Powell on Wednesday and crucially the bond market’s reaction to the central bank’s policy-setting committee meeting, with benchmark U.S. Treasury yields at 13-month highs.
FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie
Federal Reserve officials are due to issue new economic projections on Wednesday, with an upgrade to GDP growth. Markets predict the Fed may be forced to act sooner than expected in raising rates.
Benchmark 10-year Treasury yields have jumped from 0.953% at the beginning of the year to 1.67% on Wednesday, in the midst of the two-day policy meeting that began on Tuesday. The rise in yields in recent weeks came on optimism about the economic recovery and as the United States readied new fiscal stimulus.
2 Min Read
NEW YORK (Reuters) - The eurodollar and Fed funds markets, which track short-term interest rate expectations, on Wednesday reduced bets on the time frame of a potential tightening by the U.S. Federal Reserve after it dampened expectations of an early move.
Trading has been choppy after the Fed statement and Fed Chairman Jerome Powell’s news briefing, with futures pricing changing frequently, therefore shifting rate hike bets as well.
In the more liquid eurodollar futures market, traders have priced in a 90% chance of a Fed hike by March 2023 after the Fed statement, pushing back from December 2022.
Traders still factored two additional rate increase in 2023, but the implied yields have come down a bit, suggesting a less firm conviction, compared with that before the Fed meeting.