Tuesday, July 27

Federal Reserve

Economy, Fed, Federal Reserve, inflation, Inflation debate, Inflation Expectations, inflation fears, inflation gauge, inflation outlook, inflation risk, Jerome Powell, Markets, MI Exclusive, Mohamed El-Erian, New cars, semiconductor chips, semiconductor shortage, Used cars

There is a fundamental misunderstanding of inflation and its spread throughout sectors of the economy proves it is not isolated or transitory, Mohamed El-Erian says

Mohamed El-Erian. Rob Kim/Getty Images Mohamed El-Erian said there is a fundamental misunderstanding of inflation because few people have lived through it. "I always laugh when people say, oh, it's isolated, it's transitory," El-Erian told CNBC on Monday. He also disagreed with the Federal Reserve's view that inflation is transitory. Sign up here for our daily newsletter, 10 Things Before the Opening Bell Economist Mohamed El-Erian in an interview Monday took aim at assessments of inflation that describe rising prices as "transitory," stating that there is a fundamental misunderstanding of what inflation is and how it is already spreading throughout the economy. "I always laugh when people say, oh, it's isolated, it's transitory," Allianz's chief economic adviser told CNBC. "I th...
BI Commentary, Consumer spending, covid, delta variant, Economy, Federal Reserve, GDP, Markets, Opinión, Pandemic

The US economy’s boom is far from over — even with the Delta surge

With the Delta variant surging, COVID worries on once again on the rise. But there's no reason to worry about the US economy, even with new restrictions being floated. A helpful Fed, the encouraging data around vaccines, and flush consumers should keep the economy chugging along. This is an opinion column. The thoughts expressed are those of the author. LoadingSomething is loading. ...
crypto, Cryptocurrencies, digital assets, Federal Reserve, Markets, MI Exclusive, Regulation, Stablecoins, Tether, yale

Stablecoins should be regulated like banks and central bank digital currencies could tame these’wildcat’ crypto tokens, according to research from the Fed and Yale

US dollar Sopa images/ Getty images Cryptocurrencies that are pegged to a stable asset-known as "stablecoins"-should be regulated as strictly as commercial banks and those that are not should be wiped out to prevent instability in the global payments system, according to a report from researchers at the Federal Reserve and Yale University.The report, titled "Taming the wildcat stablecoins", was released over the weekend ahead of a meeting of a Treasury Department working group on digital assets on Monday. In it, researchers suggested stablecoins should be issued by insured banks and backed by government bonds. But anyone can issue a stablecoin and it is these privately produced tokens that have regulators worried. Tether, for example, is the world's third-biggest cryptocurrency b...
Bank of International Settlements, Bitcoin, bitcoin investing, bitcoin price, BTC price, CBDC, Central Bank Digital Currency, Central Banks, cryptocurrency, crytocurrencies, El Salvador bitcoin, Federal Reserve, Fiat Currency, Fintech, Markets, MI Exclusive, US Dollar

More than half of experts in a recent crypto survey said bitcoin will replace fiat currency by 2050

A local business in El Salvador that accepts bitcoin payments. Alex Pena/Anadolu Agency via Getty Images 54% of fintech experts surveyed expect bitcoin to overtake currencies issued by central banks in global finance by 2050. The move could also take place by 2035, according to 29% of respondents. The majority of the panel see bitcoin as currently undervalued, and the price rising this year to $66,284. See more stories on Insider's business page. Bitcoin, the world's most traded cryptocurrency, will surpass money issued by central banks as the dominant form of finance worldwide in less than 30 years, according to a panel of fintech specialists. 54% of 42 crypto experts surveyed foresee so-called hyperbitcoinization-or the moment that bitcoin overtakes global finance - occurrin...
10 year yield, Bitcoin, Cardano, crypto, Dogecoin, Ether, Federal Reserve, gold, inflation, Jerome Powell, Lumber, Markets, MI Exclusive, Oil, s&p 500, stock market

US stocks trade mixed as Powell reiterates in testimony that inflation will pass

A trader blows bubble gum during the opening bell at the New York Stock Exchange (NYSE) on August 1, 2019, in New York City. Johannes Eisele/AFP via Getty Images US stocks rallied on Wednesday after Federal Reserve Chairman Jerome Powell reiterated that inflation will pass.The benchmark S&P 500 index scaled close to all-time highs, while the Dow Jones Industrial Average also inched up. The Nasdaq composite fell slightly. The yield on the US 10-year Treasury slipped 6.1 basis points to 1.353%.The Fed chief said the US economic recovery still has further to go before the central bank considers tapering its asset purchases, according to prepared remarks ahead of his House Financial Services Committee testimony. Powell said the US job market "is still a ways off" from the prog...
Bond Market, covid, Economy, Fed bond purchases, Federal Reserve, inflation and bonds, Markets, Mary Daly, MI Exclusive, San Francisco Fed President Mary Daly

The Fed could start tapering bond purchases this year, San Francisco Fed President Mary Daly says

Mary Daly, president of the San Francisco Federal Reserve. The Washington Post/Getty Images The Federal Reserve could start slowing down its asset purchases in 2021, San Francisco Fed President Mary Daly told CNBC on Tuesday. 'It is appropriate to start talking about tapering,' in light of recovery in the US economy, Daly said. Daly said the Fed could start curbing purchases later this year or in early 2022. See more stories on Insider's business page. The Federal Reserve may begin slowing down asset purchases beginning this year as the world's largest economy continues to strengthen following the recessionary blow suffered during the coronavirus pandemic, San Francisco Fed President Mary Daly said Tuesday on CNBC. The central bank has been buying $80 billion worth of Treasury...
Central Bank, Economic Recovery, Economy, Fed, Federal Reserve, Labor Market, labor shortage, Markets, Supply Shortage, Supply shortages

The Fed is bummed out by all the supply and labor shortages, too

The US is recovering well, but supply constraints and worker shortages present obstacles, the Fed said. Product shortages can provide "more lasting but likely still temporary upward pressure" on prices. New technology and retirements could keep the labor market from returning to its pre-crisis norm, the Fed added. See more stories on Insider's business page. Vaccination may be keeping COVID-19 at bay, but the pandemic's fallout lives on in supply shortages and labor scarcity, the Federal Reserve said Friday.March stimulus, vaccination, and the revers...
Bitcoin, Cryptocurrencies, Federal Reserve, inflation, Markets, MI Exclusive, Rich Dad Poor Dad, Robert Kiyosaki, Stimulus, Stocks, Warren Buffett

‘Rich Dad Poor Dad’ author Robert Kiyosaki warned a historic market crash is coming, trumpeted bitcoin, and championed Warren Buffett’s love of brands in a recent interview. Here are the 10 best quotes

Robert Kiyosaki expects financial markets to suffer their most devastating crash ever. The "Rich Dad Poor Dad" author said he bought bitcoin at $9,000 and wants it to get cheaper again. Kiyosaki dislikes stocks, and encourages young people to become entrepreneurs instead of employees. LoadingSomething is loading. ...
CPI inflation, Federal Reserve, inflation, inflation and stocks, Instagram, Markets, MI Exclusive, reopening trade, services sector, UBS, us inflation, Weekend BI UK

The Instagram effect is pushing up the prices of’grammable activities like meals out and vacations-creating opportunities for investors

Consumers are rushing out to spend as economies reopen. Roy Rochlin/Getty Images Locked down during the pandemic, Americans and consumers around the world spent big on things like gadgets and gym equipment to make their time at home more bearable.But as economies reopen, people are splurging their cash on vacations, new clothes, and meals out.Paul Donovan, chief economist at UBS Wealth Management, calls it the Instagram effect.He says people want to show off again after months of lockdown, leading them to splurge on things they can post on the'gram. Donovan says the shift in spending patterns is pushing up inflation in some areas but helping bring it down in red-hot sectors like lumber. He expects the change to continue and argues it will be a good thing for markets and in...
Bond Yields, Fed inflation outlook, Federal Reserve, HSBC, inflation, Markets, MI Exclusive, s&p 500, Stock Market Outlook, US stocks

The Fed has created a ‘Goldilocks’ environment that will push stocks higher, top HSBC investment strategist says

The Fed has said strong inflation will prove transitory. Liu Jie/Xinhua/Getty Images The Fed has created a "Goldilocks" scenario in which stocks should keep rising, Willem Sels said. The HSBC Private Banking investment boss said inflation and rising bond yields should prove transitory. He said he was seeking a balance between growth and value stocks as the recovery continues. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The Federal Reserve has created a "Goldilocks" environment in which inflation should stay under control and stocks can keep rising, the chief investment officer at HSBC Private Banking and Wealth Management has said.Willem Sels said he believed the Fed had struck the right balance between keeping monetary policy loose and signaling tha...