The Dow Jones Industrial Average fell 123.1 points, or 0.39%, at the open to 31,399.11. The S&P 500 fell 30.1 points, or 0.76%, at the open to 3,902.57, while the Nasdaq Composite dropped 153.9 points, or 1.10%, to 13,893.57 at the opening bell
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WASHINGTON (Reuters) - Inflation is unlikely to hit the Federal Reserve’s 2% target on a sustained basis at least through 2022, Boston Fed President Eric Rosengren said on Wednesday, adding that he was not concerned about an immediate jump in prices that is expected to occur as the coronavirus pandemic eases.
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In the coming months “we are going to see somewhat of a pickup in inflation,” Rosengren said in comments to a University of New Hampshire Franklin Pierce Law School online symposium, with federal transfer payments again flowing, households sitting on piles of cash, and the health crisis expected to abate and allow more normal commerce, shopping and travel to resume over the year.
By Reuters Staff
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FILE PHOTO: An employee works at the Kirsh Foundry in Beaver Dam, Wisconsin, U.S., April 12, 2018. Picture taken April 12, 2018. REUTERS/Timothy Aeppel
WASHINGTON (Reuters) - Output at U.S. factories increased more than expected in January even as a shortage of semiconductors weighed on the production of motor vehicles, pointing to resilience in the manufacturing sector recovery.
Manufacturing production rose 1.0% last month after gaining 0.9% in December, the Federal Reserve said on Wednesday. That was the ninth straight monthly advance in factory production.
Economists polled by Reuters had forecast manufacturing output increasing 0.7% in January. Manufacturing, which accounts for 11.9% of the U.S. economy, has powered ahead as the pandemic left Americans grounded at home, shifting demand to household goods from services like airline travel and hotel accommodation.
Inflation is unlikely to hit the Federal Reserve's 2% target on a sustained basis at least through 2022, Boston Fed President Eric Rosengren said on Wednesday, adding that he was not concerned about an immediate jump in prices that is expected to occur as the coronavirus.
Cash levels in investment portfolios have hit the lowest since just before the so-called taper tantrum of 2013, according to Bank of America's February fund manager survey, which also showed investors to be overwhelmingly bullish on the economic outlook.