By Syndicated Content
May 6, 2021 9:31 AM
(Reuters) – Dallas Federal Reserve Bank President Robert Kaplan on Thursday said he wants the central bank to start talking about reducing policy accommodation “sooner rather than later,” saying the economy has improved faster than he expected, and citing worries about excesses and imbalances in markets.
“We will be much healthier as an economy” once the Fed reduces bond-buying, Kaplan said at the Levy Economics Institute of Bard College. Vaccinations have proceeded faster than he expected, and there has been more fiscal aid, he said, also noting that bond-buying can create “excesses and imbalances” in markets, including the housing market.
May 6, 2021 22:21 GMTFXStreet News
What you need to know on Friday, May 9:
Comments from different Fed officials cooled down expectations for higher rates in the US, leading to persistent dollar’s weakness. The American currency fell against all of its major rivals, particularly weak against safe-haven rivals. Dallas Federal Reserve Bank President Robert Kaplan said that he would like to start talking about tapering sooner rather than later, but he is not a voting member.
Wall Street advanced, with the
DJIA settling at record highs. European indexes were also up. US Treasury yields, on the other hand, eased, with the yield on the 10-year note down to 1.55%.
Fed Chair Jerome Powell
‘Frothy’ Stock Prices Pose Quandary for Powell in Mapping Policy The Fed’s rock-bottom interest rates and massive bond buying might lead to asset price bubbles, and excessive risk-taking and leverage that could come back to haunt the economy.
Rich Miller | May 06, 2021
(Bloomberg) Federal Reserve Chairman Jerome Powell has called the risks emanating from “frothy” stock prices and other potential financial imbalances “manageable.” Some current and former central bankers are not so sure.
They worry that the Fed’s rock-bottom interest rates and massive bond buying might lead to asset price bubbles, and excessive risk-taking and leverage that could come back to haunt the economy.
Futures Point To Positive Open For Wall Street
BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Economic announcements, especially weekly Jobless Claims, shall be the focus on Thursday. Earnings reports also might get special attention.
Asian shares finished mostly higher, while European shares are trading broadly lower.
Initial signs from the U.S. Futures Index suggest that Wall Street might open positive.
As of 7.50 am ET, the Dow futures were adding 42.00 points, the S&P 500 futures were up 3.50 points and the Nasdaq 100 futures were gaining 20.75 points.
The U.S. major averages finished Wednesday on opposite sides of the unchanged line. The Nasdaq fell 51.08 points or 0.4 percent to 13,582.43, the Dow rose 97.31 points or 0.3 percent to 34,230.34 and the S&P 500 inched up 2.93 points or 0.1 percent to 4,167.59.
By Syndicated Content
May 4, 2021 | 1:56 PM
(Reuters) – Dallas Federal Reserve Bank President Robert Kaplan on Tuesday said he expects inflation to rise in coming months and then “settle down” near 2.25% by year’s end, adding that he’s still trying to understand how much of the rise in inflation will persist into coming years.
“We’re watching it very very carefully,” Kaplan told the Community Bankers’ of Washington Northwest Conference, noting that his business contacts have begun to tell him they feel the supply chain disruptions and other factors pushing up prices may take longer than they thought to get resolved. As for where inflation will go in the next five years, he said, “The jury is out, and I don’t know.”