USDGBP USD/GBP
- 0.7507
- -0.0020-0.27%
USD/GBP News
Can interest rate cuts solve the "overvaluation risk" of US stocks and bonds?
Taking the 2008 financial crisis as a lesson, if the USA has already or is about to start declining, even a significant interest rate cut cannot prevent the arrival of a bear market. According to goldman sachs's latest research reports, if the economy has already entered a recession before the first interest rate cut, then the s&p 500 index is expected to drop an average of 14% in the next year.
Federal Reserve monetary policy for the past forty years: "Volcker's inflation control" - "Greenspan's miracle" - "Bernanke's quantitative easing", what will Powell leave behind?
From Volcker's firm interest rate hikes to restrain inflation, to Greenspan leading the United States through economic prosperity, to Bernanke's quantitative easing reshaping the economic environment after the financial crisis. Today, the Fed is facing the most complex global economic situation in history. Can Powell replicate the success of past leaders and lead the U.S. economy to a soft landing?
Shipping prices have dropped 40% from the high point earlier this year! East Coast port strikes combined with the Fed rate cut, is the West Coast route expected to see an increase?
①This week, the comprehensive NCFI index has fallen by 40% from the peak of the year, but it is still far higher than the same period last year; ②With the approaching date of the planned strike by East Coast dock workers, industry insiders say that if the strike lasts for a long time, the freight rates in the West Coast will inevitably be pushed up. In addition, the Fed's interest rate cut will also stimulate consumer demand in the United States and boost freight transportation demand.
Federal Reserve official Harker: The risks facing employment and inflation are more balanced.
Philadelphia Federal Reserve President Patrick Harker said that he believes the risks facing the labor market and inflation in the usa are roughly balanced. Harker, speaking at Tulane University in New Orleans on Friday, said, "The risks between our dual mandate of employment and inflation are more balanced, which is why we have already begun the process of lowering interest rates. There are some risks of inflation stagnation. We want to ensure that this does not happen. We want to return to 2%. Additionally, there are risks of softening in the labor market."
Why is it difficult for the British pound's upward trend to be sustained?
The British pound's leading rally received new impetus this week, but strategists at JPMorgan Private Bank, Deutsche Bank Global Markets, and Jefferies Financial said on Friday, September 20th, that the pound's rally appears to be increasingly fragile.
Federal Reserve Board member Bowman explains the dissenting vote: concerns about inflation, 50 basis points may be seen as announcing victory over inflation prematurely.
Bowman said that a significant rate cut can be seen as the Fed's early declaration of a major victory in the fight against high inflation. She prefers to cautiously loosen the FOMC's monetary policy to avoid reigniting consumer demand. "I believe that moving towards a more neutral policy stance in a cautious manner will ensure further reduction of the inflation rate to the 2% target."
Two Federal Reserve Board members expound their views on interest rate cuts, offering starkly different interpretations of inflation.
Federal Reserve Governor Michelle Bowman said that a 50 basis point rate cut this week could be seen as a signal that the central bank announced victory over inflation too early. In a statement released on Friday, Bowman stated, 'I believe that gradually adjusting monetary policy to a neutral stance in a prudent manner can ensure that the inflation rate further returns to the target level of 2%.' Bowman became the first Federal Reserve Governor to dissent on an interest rate decision since 2005. At the time, she expressed a preference for a 25 basis point rate cut. The vote by the Federal Open Market Committee on a 50 basis point rate cut was 11 in favor and 1 opposed.
Powell explains the Fed's aggressive interest rate cut: Inflation decline exceeds expectations, there is still room for further action.
Waller said,"Wow, the speed of inflation decline is much faster than I expected, which makes me unable to help saying, look, I think 50 basis points is right." ; Waller said that recent data shows a stronger downward trend in prices,"We do have room for maneuver, and that is the message the committee is conveying."
Federal Reserve Governor Waller: What prompted me to support a significant interest rate cut was the inflation data.
Federal Reserve Board Member Christopher Waller stated this week that what prompted him to support a 50 basis point rate cut was not concerns about the labor market, but rather the improved inflation data. In an interview with CNBC on Friday, Waller said, "What worries me more is that inflation is softer than I imagined." Waller estimated that the personal consumer expenditure price index rose by less than 1.8% on an annualized basis in the past three months, below the Federal Reserve's 2% target. Waller said that if the economy develops as he expects, he may support a 25 basis point rate cut at the November and December meetings.
Fed Governor Waller: The slower-than-expected pace of inflation has led him to join the camp advocating for a 50 basis point interest rate cut.
More news, continuously updated.
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Federal Reserve interest rate easing, is the glory of the mmf market funds over?
The Federal Reserve's decision this Wednesday has once again sparked market discussions. After months of hawkish stance, the Fed unexpectedly cut the federal funds rate by 50 basis points to a range of 4.75%-5%. This move signals a change in the market liquidity environment, and investors have already begun adjusting their strategies, with particular attention to the movement of safe-haven funds.
The British pound against the US dollar has reached a new high in over two years. Strategists warn that the upward trend may not continue.
The strategist said that the British pound's upward trend appears to be increasingly fragile.
GBP: Growing Strength Near Term – ING
Strong UK Retail Sales Data Helps Boost the Pound
GBP/USD: May Have Enough Momentum to Test 1.3320 – UOB Group
USD: Getting Softer Amid Intra-day Volatility – ING