News

Inflation

Jerome Powell Says Fed To Discuss Accelerated Tapering of Bond Purchases at Next Policy Meeting

Reuters | Equities.com |

Federal Reserve Chair Jerome Powell on Tuesday said the U.S. central bank likely will discuss speeding up its "taper" of large-scale bond purchases at its next policy meeting, amid a strong economy and expectations that a surge in inflation will persist into the middle of next year.

"At this point the economy is very strong and inflationary pressures are high and it is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner, and I expect that we will discuss that at our upcoming meeting in a couple of weeks," Powell said in testimony before the U.S. Senate Banking Committee.


Let the Inflation Battle Begin

Tradier | Equities.com |

The Biden Administration had indicated that it would decide on the next Fed Chair by Labor Day. With Thanksgiving this week, the decision was long overdue. On Monday, November 22, President Biden decided to reappoint the sitting Chair for another term.


Dismiss Gold at Your Peril

Frank Holmes | Equities.com |

Back in December 1997, the Financial Times ran a now-infamous article titled “Death of Gold.”

In it, the author Kenneth Gooding claimed that as an investment, “Gold is a goner.” He said the crises of the previous 10 years — the 1987 stock market crash, the Gulf War, Asia’s financial meltdown — had not resulted in higher demand, as one might expect. Gold was now a “mere metal” and a “bad investment,” Gooding concluded.


Another Inflationary Sign From Cryptocurrencies

Tradier | Equities.com |

Bitcoin and Ethereum are the leaders of the cryptocurrency asset class. As of November 5, the overall asset class had a $2.696 trillion market cap. 13,669 different cryptos make up the total value, but Bitcoin and Ethereum account for 62.4% as Bitcoin was worth around $1.152 trillion, and Ethereum had an over $528.25 billion market cap.


The Great Labor Dilemma — How It Began and Where We Are Now

Tradier | Equities.com |

In September, the US economy added 194,000 jobs, far below consensus analyst expectations of 500,000 jobs. The unemployment rate moved lower to 4.8% from 5.2% in August. Ironically, there are plenty of jobs available for workers, but companies across all sectors report challenging conditions for attracting workers.


Paul Tudor Jones Calls Inflation 'Single Biggest Threat' to Financial Markets

Kimberly Redmond | Equities.com |

Billionaire hedge fund manager​ Paul Tudor Jones believes inflation will not be going away anytime soon, posing a big threat to the US markets and economy. ​ 

During an appearance Wednesday on CNBC’s “Squawk Box,” Tudor Jones said, “I think to me, the number one issue facing Main Street investors is inflation, and it’s pretty clear to me that inflation is not transitory. It’s probably the single biggest threat to certainly fina...


Breaking the Supply Chain Bottleneck

Tradier | Equities.com |

Since the start of the global pandemic, historically low interest rates and government spending have inhibited saving and encouraged borrowing and spending to lift the economy during the challenging period. The US Federal Reserve and government have pumped far more liquidity into the financial system than during the 2008 global financial crisis. We have seen an increase in inflationary pressures because of the stimulus. Moreover, the pandemic’s unintended consequences have created shortages and supply chain bottlenecks that have only exacerbated rising prices.


The Debt Ceiling Mirage

Tradier | Equities.com |

The US debt ceiling or debt limit is a legislative limit on the national debt that the US Treasury can incur. October 18 was the line in the sand for the US debt. The debt ceiling limits how much money the federal government may pay on the debt previously borrowed. Without Congress increasing the level, the government risks a default, weighing on the world’s faith in the US and likely causing a credit downgrade.


Wholesale Prices Jump 1% in July, Up 7.8% Over Past 12 Months

AP News | Equities.com |

Inflation at the wholesale level jumped a higher-than-expected 1% in July, matching the rise from the previous month, and dimming hopes that the upward trajectory of prices would begin to slow.

Prices at the wholesale level over the past 12 months are up a record 7.8%, the largest increase in that span of time in a series going back to 2010.


Unilever Posts Strong Q2 But Warns Full Year Margins To Be Squeezed by Surging Commodity Costs

Reuters | Equities.com |

Unilever Plc warned on Thursday that surging commodity costs would squeeze its full-year operating margin, overshadowing strong second-quarter sales growth fuelled by the easing of pandemic-related curbs in many of its markets.

Underlying sales for the maker of Dove soap maker rose 5% in the three months ended June 30, above 4.8% forecast by analysts. However, rising prices of everything from crude to palm and soybean oil made the company cut its operating margin outlook to "about flat" from slightly up earlier and flag greater uncertainty surrounding that forecast.


Sponsored Financial Content

Market Movers