Federal Reserve Chairman Jerome Powell is expected to announce a temporary halt to interest rate hikes after a decline in inflation. The announcement is scheduled for 2:30 p.m. ET.
The US Federal Reserve has paused its series of interest rate increases, but warned that inflation remains high and hinted that rates may rise again this year. The Fed's benchmark lending rates will remain between 5% and 5.25% after 10 consecutive increases. The move is intended to control inflation accelerated by Russia's invasion of Ukraine. The Fed also stated that more rate increases are possible in 2023 to bring inflation down to 2% over time. The European Central Bank is expected to raise rates by 25 basis points on Thursday, with another increase in July.
Hong Kong's monetary authority has kept its base rate unchanged at 5.5%, following the US Federal Reserve's decision to hold its target rate unchanged. The pause in raising interest rates will give the Fed the opportunity to assess the impact of previous rate hikes on the US economy. The decision is expected to provide a boost to Hong Kong's economy, which has been in a slump due to pandemic controls. It may also support global equities. However, there are concerns that Hong Kong banks may raise their prime rates, which would increase the cost of borrowing for homeowners.
The US Federal Reserve has signalled it expects to raise interest rates twice more this year, despite pausing in June. The decision marks the first break in the central bank's tightening cycle in over a year. The pause was due to economic strength and inflation that was higher than expected. However, the Fed's latest projections indicate that the tightening cycle is not yet over, with rates expected to increase to between 5.5% and 5.75% from their current level of 5% to 5.25%. Fed Chair Jerome Powell stated that while the economy was healthy, inflation remained stubbornly high. He also said that the financial sector was still causing difficulties, with banks tightening credit conditions. Powell added that the Fed would continue to monitor credit conditions and other economic factors to inform its rate-setting decisions.
The US Federal Reserve has left interest rates unchanged, but indicated a rate increase may be needed later this year. The central bank suggested rates may rise by 0.5% to 5.6% by the end of 2018, higher than the 5.1% projected in March. Jerome Powell, the Fed's chairman, said the bank wanted to "keep our options open" while taking into account data as it comes in.
The US Federal Reserve has paused its aggressive rate-hiking cycle but foreshadowed two more rate rises this year. Following a two-day meeting, the Federal Reserve Open Market Committee (FOMC) left its target for the interest rate at 5-5.25%. The pause in interest rate hikes follows 10 consecutive rate rises in 15 months. Fed chair Jerome Powell said the decision to pause was taken in light of how far the policy had tightened and the uncertain effect of monetary policy on the economy. The median FOMC projection for the federal funds rate at the end of this year is 5.6%. However, 15 of the 18 members expect rates to fall next year, with a median projection for the federal funds rate at the end of next year of 4.6%. The Fed has a target inflation rate of 2% "over time", with the US rate currently at 4%.
Company execs used to trumpet their diversity and climate efforts. Now not so much
CNN
23-06-15 11:57
Only 74 companies in the S&P 500 mentioned ESG in their Q1 earnings calls, the lowest number since Q2 2020, according to FactSet. Mentions of ESG peaked in Q4 2021, when about 160 firms discussed the term in their earnings calls. The decline in mentions comes as assets under management in ESG funds fell by $163.2bn globally during Q1 2023, according to Lipper. The decrease in popularity of ESG investing can be attributed to a number of factors, including political division in the US and increased scrutiny of companies' ESG claims. Some US states have enacted provisions to block attempts to invest in state-run investment accounts with an ESG lens, and conservative groups have targeted companies over their ESG initiatives. However, companies are still continuing with their ESG programmes, despite a decrease in public discussion, said Douglas Chia, president of Soundboard Governance.
US stock index futures dipped after the Federal Reserve indicated that interest rates could rise further this year. The Fed, which left rates unchanged at its latest meeting, suggested borrowing costs could increase by at least 0.5% this year. Investors now see a 72% chance of a rate hike in July, up from 60% the previous day, according to the CME Fedwatch tool. Shares in Tesla, Apple, Nvidia and Amazon.com all fell between 0.3% and 3.1% in premarket trading. However, US-listed shares of Chinese firms rose after the People's Bank of China cut borrowing costs for its medium-term policy loans.
The all-female racing competition, W Series, has entered administration due to a lack of funding. The 2022 campaign was cut short with three races remaining and since then, no avenues for further investment have materialized. The administrators have confirmed that staff have been made redundant or left the business prior to their appointment, with only one staff member losing their job after the appointment. W Series, which was launched in 2018, aimed to provide opportunities for female racing drivers and inspire young female racing fans. It has been replaced by the F1 Academy, which launched in April.
The Department of the Interior has announced the beginning of a process to develop long-term operational guidelines for the Colorado River. The new guidelines will replace the 2007 Colorado River Interim Guidelines for Lower Basin Shortages and the Coordinated Operations for Lake Powell and Lake Mead, which are due to expire at the end of 2026. The notice of intent is open for public comment until 15 August.
Inflation Has Been Coming Down So Fed’s Rate Pause Is Reasonable
Cato
23-06-15 19:29
The US Federal Reserve's decision to keep its rate target steady is reasonable given recent inflation figures, according to Norbert Michel and Jai Kedia in a Cato Institute op-ed. Since June 2022, the month-to-month change in core CPI has been on a downward trend, and the full CPI rate has also been mostly falling, they note. The Fed's target rate may already be "too high," and there is no reason to keep raising rates, the pair argue. Raising rates too much could unnecessarily slow economic activity down, they warn.
The sell-off in the yen has accelerated following the US Federal Reserve's interest rate decision, which underscored the Bank of Japan's dovish stance ahead of its policy meeting this week. The yen is losing value against major currencies as well, with exchange rates at a 15-year low against the euro and at levels not seen since December 2015 against the British pound. The Bank of Japan is expected to maintain its ultraloose policy at its policy meeting this week, while the European Central Bank raised interest rates to their highest level in 22 years.
Democratic senators have written to the Biden administration, calling for it to go further in addressing methane emissions from oil and gas production. The senators believe the proposed rule is "insufficient," particularly in relation to flaring, a process by which excess gas is burned off, releasing methane. They say the proposed rule does not address flaring adequately, and would allow "continued massive volumes" of methane and carbon dioxide emissions from wasteful flaring of saleable gas resources. Methane is a planet-warming gas more than 25 times as potent as carbon dioxide.
Luxury homeowners are seeking comfort and functionality rather than opulence in their properties, according to leading designers. One example is a luxury condominium project in Toronto, which will feature dining rooms capable of seating up to 24 people, chef’s kitchens and large pantries. Another designer said that properties are moving away from being a “sanctuary” and towards spaces ideal for hosting parties and socialising.
The Bank of England (BoE) has been accused of failing to take a more aggressive stance on inflation, unlike the US Federal Reserve (Fed), which has taken steps to control rising prices. The BoE's headline inflation rate remains in double digits, while core inflation is nearing 7%. The Monetary Policy Committee's lack of conviction is causing the markets to wobble, with investors demanding better returns and gilt yields drifting upwards. The BoE's failure to tackle inflation early on means that more needs to be done now to bring the rate down, leaving Britons facing higher interest rates and inflation. The BoE's governor, Andrew Bailey, has been defensive about the bank's late action, insisting that early and unrealistic rate hikes would have been needed to control inflation. The BoE's caution has allowed the Fed to surpass it in narrative and action. As rates are set to rise further in both the US and the UK, it is difficult to predict the economic outlook for 2024, an election year for both countries.
The European Central Bank (ECB) has increased interest rates and raised its inflation outlook. ECB President Christine Lagarde said that more rate increases were coming, with a likely increase in July. The Bank of England is also expected to continue raising rates, while the US Federal Reserve opted to hold rates steady and projected a longer-than-expected fight against inflation. The Bank of Japan has kept interest rates low but has seen notable changes in corporate pricing behaviour and remains cautious about the risk of an inflation overshoot.
The Toronto Transit Commission (TTC) is implementing several service changes starting this Sunday. The changes include increased weekend service on Line 1 Yonge-University, the launch of a new bus route, and increased service to the Toronto Zoo and Cherry Beach neighbourhood. The changes are being made to accommodate construction, improve service reliability, and better align with ridership demand. Some bus and streetcar routes in the city's east end will also be impacted due to construction projects.
The Western Bulldogs have defeated North Melbourne by 21 points in their Round 15 clash at Marvel Stadium. The Bulldogs were dominant throughout the game, generating 36 more inside 50s and winning the clearance and contested possession battle. Cody Weightman kicked six goals for the Bulldogs, with Adam Treloar also starring with 34 disposals. The win solidifies the Bulldogs' place in the top eight, while North Melbourne remain in the bottom four.
Port Adelaide overcame a slow start to defeat Geelong by 38 points. The Power trailed by 21 points in the second quarter before mounting a comeback and scoring seven unanswered goals to take a commanding lead. The win extended Port Adelaide's winning streak to 11 games, a club record. Despite the loss, Geelong is still favored to make the finals, although they currently find themselves outside of the top eight. The team's main concern is the health of captain Patrick Dangerfield, who suffered a partially collapsed lung and cracked rib in the game. Brisbane defeated Sydney by 16 points in a hard-fought match. The win kept Brisbane's place in the top four secure, while Sydney missed the opportunity to move up the ladder. GWS dominated Fremantle, winning by a thumping margin of 62 points. The Giants' midfielders were decisive in the win, while their defense continues to impress, with Fox Footy commentator Gerard Healy calling it one of the best in the league. Richmond defeated St Kilda by 40 points, with Tim Taranto standing out for the Tigers with his toughness and aggression. Carlton secured a convincing 59-point win over Gold Coast, with coach Michael Voss noting the team's improved dash and attacking variety. The Western Bulldogs scraped past North Melbourne by 20 points, but coach Luke Beveridge acknowledged that the team needs to reduce the margin to the top teams in the league. North Melbourne's interim coach Brett Ratten emphasized the need for the team to start winning games to prove they are on the right track.
Houston rapper Big Pokey has died at the age of 48. The rapper, who was a member of the Screwed Up Click collective, collapsed at a bar in Texas, according to his publicist. Big Pokey helped to pioneer the "chopped-and-screwed" style of hip-hop, which involved slowing down the pitch of a track to create a laid-back sound.
