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This week's major events include Powell's cautious outlook on rate cuts, TSMC's gains amid Samsung's strike, and Putin's diplomatic efforts. In China, the PBOC prepares bond interventions, while Korea's Hahn & Co. raises $3.4 billion. Deflationary pressures persist in China. US and European legal and regulatory changes impact market sentiment. Key data releases are NFIB Small Business Optimism, Core CPI, PPI, and Michigan Consumer Sentiment for the USA.
In a world where economies ebb and flow like tides, a powerful institution holds the keys to the kingdom of money. Nestled in the heart of the United States, the Federal Reserve looms as a force to be reckoned with, shaping the very fabric of the global financial landscape. But what exactly is the Federal Reserve, and how does it exert its influence over the value of the almighty U.S. dollar and the broader global economy? Let’s explore it in great depth!
"While the economic response has been both timely and appropriately large, it may not be the final chapter," Powell said.
"While the economic response has been both timely and appropriately large, it may not be the final chapter," Powell said.
Several officials agreed that the Fed's relief efforts — while necessary — pose economic risks if they go unchecked and aren't appropriately reversed.
Virus hotspots including New York, Michigan, and Pennsylvania are receiving fewer PPP loan approvals than less-affected states, the economists wrote.
Monetary authorities are spending trillions of dollars to keep economies stable, creating a perfect situation for gold to rally, the analysts said.
"The Fed is now providing backstops for pretty much everything."
"It is a huge shock and we are trying to cope with it and keep it under control," St. Louis Fed chief James Bullard told Bloomberg.
Chris Brightman, chief investment officer at Research Affiliates, says this "huge disinflationary environment" isn't perpetual. Here's how to prepare.
Peter Schiff, president and CEO of Euro Pacific Capital, thinks time is wearing thin for the US economy.
Daniel Lacalle, chief economist at Tressis, says it's a bad idea for investors to put so much faith into central banks.
As trade wars and monetary policy look to maintain their position at the helm, markets will be offered insight on another major theme that could rattle fragile sentiment.
Equity strategists found that the same stock-market factors that outperformed when the Fed last cut rates are working just weeks after the July cut.
After the Federal Reserve's interest rate cut, banks announced reductions in their prime lending rate which affects credit cards, auto loans and more.
The Fed cut interest rates Wednesday for the first time in a decade. But stocks fell sharply following the announcement.
The pound has shed 2.6% under Boris Johnson, its second-biggest drop in a prime minister's first week since 1976.
Borrowers may see interest rates down on credit cards, variable rate student loans, auto loans, small business loans, and home equity lines of credit.
When the Fed cuts interest rates, it's to encourage spending and growth, and it affects everything from savings accounts to mortgages to loans.
The US Federal Reserve will hold Facebook cryptocurrency to high standards for protecting consumers and regulation