Oil down. Gold up. USA markets in the red for the fifth day. Brexit creating uncertainty. Manufacturing declined in May. The markets may have lost respect for the Federal Reserve. Lots of dynamics in play which are covered in this market close.
WASHINGTON (Reuters) - The Federal Reserve kept U.S. interest rates unchanged on Wednesday and signaled it still planned two hikes this year, although a slowing economic growth path for 2016 and 2017 prompted a downgrade in where the U.S. central bank thought rates would peak.
(Reuters) - Wall Street fell for a fifth straight session on Wednesday after the Federal Reserve left interest rates unchanged and investors stewed over an impending vote in Britain on whether to leave the European Union.
WASHINGTON (Reuters) - U.S. manufacturing output unexpectedly fell in May as motor vehicles and parts production recorded its biggest drop in nearly 2-1/2 years, suggesting sustained weakness in the sector even as the overall economy appears to be gaining momentum.
NEW YORK (Reuters) - A U.S. bankruptcy judge on Wednesday approved Gawker Media LLC's request to borrow $22 million from an affiliate of buyout firm Cerberus Capital Management LP to help fund the online publisher through its court-supervised auction.
(Reuters) - North Dakota's oil output fell the most in history in April, with low crude prices and inclement weather forcing producers to cut back the drilling and fracking of new wells, state regulators said on Wednesday.
NEW YORK (Reuters) - The asset management sector "needs consolidation" and has the potential for "quite a bit" of merger and acquisition activity, BlackRock Inc Chief Executive Officer Laurence Fink said at an investor day meeting in New York.
WASHINGTON (Reuters) - Banking rules meant to protect the U.S. financial system from collapse are not harming the economy or damaging financial markets, the chairman of the Federal Deposit Insurance Corp said on Wednesday, contrary to the views of industry groups.
We were amazed in March when, during the last Fed press conference, CNBC's Steve Liesman and traditional Fed cheerleader went so far as to ask a stunned Janet Yellen whether she has a credibility problem: "Does the Fed have a credibility problem in the sense that it says it will do one thing under certain conditions, but doesn't end up doing it? And then, frankly, if the current conditions are not sufficient for the Fed to raise rates, well, what would those conditions ever look like?"
Janet Yellen's jumbled 261 word response was one for the ages (and can be read here), but that particular exchange was nothing compared to what Steve Liesman said today when, in similar words he asked the same question, and got the same garbled response.
But it was what he said afterwards that was amazing. And we quote:
I think the first rate hike cycle is over. What Janet Yellen said in response to my question, and if you look at what has happened to the rate hike cycle is pretty profound. It's as close to the Fed getting to capitulation as I've ever seen, about the efficacy of Fed policy, about the outlook for the economy.
I just want to read this: "I think all of us are involved in a process of constantly reevaluating where the neutral rate is." Basically they see these headwinds to the economy as becoming part of the new normal. This five-eights decline to the Fed Funds rate outlook for 2018 is pretty profound and GDP remained the same. That's very important. And I am going to give rick a blue ribbon because Rick represents the ...
Submitted by Daniel Mcadama via The Ron Paul Institute for Peace & Prosperity,
Here is further proof that US foreign policy fact is stranger than fiction: one day after the Orlando shooting where some 50 patrons of a homosexual bar were gunned down, US Secretary of State John Kerry sat down to dinner with with Saudi Prince Mohammed bin Salman in Washington, D.C. and, according to the State Department, "discussed this weekend's shooting in Orlando and expressed their shared commitment to continue their cooperation in combatting the spread of violent extremism, both regionally and internationally."
Yes, the same country that follows as a matter of official policy the exact treatment of homosexuals as was meted out by the Orlando shooter has expressed concern over extremism!
Saudi Arabia's own "violent extremism" doesn't end at its treatment of homosexuals.
As the defense minister of the Saudi kingdom, Saudi Prince Mohammed bin Salman is responsible for the brutal and genocidal war on Yemen and for Saudi Arabia's strong backing of radical jihadists -- including al-Qaeda -- who for the past five years have killed tens of thousands in attempt to overthrow secular Syrian president Assad.
Also, if reports about the contents of the still-classified "28 Pages" of the 9/11 report are accura ...
Econintersect: The Federal Open Market Committee (FOMC) - the board of directors of the Federal Reserve again did NOT adjust the federal funds rate. There was dissent as one member believed the federal funds rate should have been increased. The prime reason for NOT raising this rate:
.... pace of improvement in the labor market has slowed while growth in economic activity appears to have picked up. Although the unemployment rate has declined, job gains have diminished ...
The Fed thinks that full employment is between 4.7% and 5%, but even though the unemployment rate is now 4.7%, the Fed still thinks there's slack in the jobs market. Something has to give, writes Steve Goldstein.
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