Published: Mon, July 17, 2017
Sports | By Nelson Rowe

Fed's Yellen: Further Gradual Interest Rates Increases Likely Warranted

Fed's Yellen: Further Gradual Interest Rates Increases Likely Warranted

She said that Fed officials were cautious of the recent low inflation readings. But while Yellen was mostly positive, "her forward-looking comments on the economy and rates seemed a bit less emphatic than those from her press briefing last month", noted Jim O'Sullivan, chief US economist at High Frequency Economics.

The Fed still feels the economy needs loose - or accommodative - monetary policy, so a lower neutral rate may mean fewer rate hikes. This suggests to me Brainard really only sees one more hike (presumably in December if data permits) before we get to levels where the key United States interest rate suits economic activity.

-Yellen will continue testifying Thursday.

-The Dow rose 123.58 points to a record 21,532.65, while the Russell 2000 Index added 0.9 percent, 0.2 percent from its high.

The rate-sensitive S&P 500 real estate index was among the strongest in the benchmark index, posting a 1.3 percent gain, its biggest one-day percentage gain in about four months.

Wall Street rose modestly on Thursday afternoon, helped by gains in financials ahead of profit reports from several big us banks Friday.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, rose by 0.01% to 95.50. It's premature to reach the judgment that we're not on the path to 2 percent inflation over the next couple of years.

-The yen gained 0.7 percent to 113.14 per dollar.

The news boosted other retailers, with Wal-Mart up 1.4 percent and Costco edging up 0.9 percent.

-The loonie rose 1.4 percent to $1.27356.

Eurozone industrial production growth exceeded expectations in May with the Eurostat report showing Industrial output grew 1.3% m/m following a revised 0.3% rise in April.

The Bank of Canada lifting rate by 25 basis points for the first time since 2010 was priced in, and while Governor Poloz struck a cautionary tone he has started what the market feels is the platform for a cycle of interest rate hikes over time, albeit slowly.

-Crude inventories fell 7.56 million barrels last week, the EIA said.

Labor force participation in the USA has plummeted since the start of the 21st century, and male involvement in the workforce has been falling off ever since the 1950s.

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