How will the Fed respond to the surge in US inflation?
How will the Fed respond to the surge in US inflation?
After the release of the data last week, the Fed is facing new pressure to tighten and ultra-loose monetary policy. display In the 12 months to April, US consumer prices rose at the fastest rate since 2008, exceeding economists’ expectations.
Prior to the release of the minutes of the latest central bank meeting on Wednesday, inflation soared, which will provide investors with more detailed information about the Fed’s plan to guide the country’s recovery from the pandemic.
Chairman Jay Powell (Jay Powell) Reiterate After the policymakers’ meeting in late April, the Fed is still “a long way from withdrawing any monetary support.” In addition, he and other committee members have made it clear that they will allow inflation to temporarily exceed the central bank’s long-term target of 2%.
Episode Summary
D.C. expert and policy wonk Mark Schoeff Jr. joins Bruce and Jeff to discuss the details of Biden’s three big initiatives so far, The American Rescue, Jobs, and Families plans. The trio debate the merits of spending trillions to help Americans, and the tax ramifications. Nico Marais, CEO of Wells Fargo Asset Management, also joins to share his vision for the firm as it embarks in a new direction post-purchase by private equity.
Episode Notes
Biden tax plans and the ensuing adviser/client obsession around planning
Financial advisers’ take on the plans
A sign of changing demographics among the adviser community?
Louisiana Teachers assigns $1.4 billion to emerging markets equities
Pension fund also rehires Aon as consultant, slates $175 million for alts
Franklin Templeton and
William Blair & Co. to manage about $700 million each in active emerging markets equities, said Dana T. Brown, director of public markets.
The $24.5 billion pension fund issued a solicitation for proposals in February due to the pending expiration of the contracts of value equity manager Dimensional Fund Advisors and growth manager Harding Loevner.
Both managers rebid for the services. Franklin Templeton will manage a value portfolio, and William Blair will run a growth portfolio.
Growth manager Columbia Threadneedle Investments and value manager Wells Fargo Asset Management were the other finalists.
U.S. index futures slumped on the final trading day of April, dragged lower alongside European and Asian markets, despite stellar economic data and blockbuster earnings as traders took a month-end breather amid a record high for the S&P 500 Index and some earnings disappointments. The dollar pared April losses, and the VIX jumped.
Russell 2000 futures tumbled 1.1% and Nasdaq 100 futures dropped 0.8% after China’s antitrust crackdown weighed on Asian technology shares.
Twitter plunged 13% in premarket trading after forecasting second-quarter revenue below some expectations, while Amazon s blockbuster earnings helped push the stock to all time highs, although gains were trimmed in the premarket.
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LONDON (Reuters) -World shares hit record highs in the European session on Monday, as markets were generally upbeat about the prospects for a global economic recovery from COVID-19, ahead of a busy week for earnings.
FILE PHOTO: A TV reporter stands in front of a large screen showing stock prices at the Tokyo Stock Exchange after market opens in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon
Europe’s STOXX 600 rose to a record high before easing some gains, up 0.1% at 1105 GMT. Asian shares hit one-month highs overnight.
MSCI world equity index, which tracks shares in 49 countries, also climbed to a new peak, up 0.2%.