Fed Chairman Jerome Powell Compares Bitcoin to Gold

Cornelia Mascio
Luglio 12, 2019

Both figures exceeded estimates. The CPI rose 0.1 per cent in May.

The report showed broad monthly gains in the core categories, including pickups in costs for shelter, used vehicles, clothing, and home furnishings and operations.

Testifying before the U.S. House Committee on Financial Services on Wednesday, . "So monetary policy hasn't been as accommodative as we had thought".

Some businesses, particularly in manufacturing, have pulled back on spending and hiring because of greater uncertainty about USA trade disputes, Fed officials said, according to minutes of the June 18-19 meeting released Wednesday.

"One of the primary reasons the Fed is going to cut rates is that inflation expectations have fallen, so if expectations bounce back it may limit the scope of the impending easing cycle", said Eric Winograd, senior economist at AllianceBernstein in NY.

Mr Powell, giving evidence to a hearing in Washington, has come under pressure from Donald Trump to cut rates. In the 12 months through June, the core CPI climbed 2.1% after advancing 2.0% in May. Plus, the Fed is concerned about a slowdown in global growth and it views inflation as tame, which eases any worries that it would flare up once borrowing becomes cheaper.

A separate Labor Department report showed first-time claims for US unemployment benefits unexpectedly fell in the week ended July 6th.

Jobless claims dropped by 13,000 to 209,000 in the week ended July 6, below all estimates in a Bloomberg survey of economists that had projected 221,000.

But she added that despite being "an overall strong report, we highlight that the rebound in core goods was driven by volatile components".

The U.S. benchmark S&P 500 stock index notched a record closing high just shy of the 3,000 mark as financial shares were boosted by a jump in bond yields following soft demand in an auction of $16 billion in 30-year Treasuries.

In June, core inflation was pushed up by higher rents and a 1.6 percent jump in used auto and truck prices, which followed four straight months of decline.

People shop at an H&M store during the grand opening of the The Hudson Yards development, a residential, commercial, and retail space on Manhattan's West side in New York City, New York, U.S., March 15, 2019. Food costs were unchanged.

Shelter costs, which make up about a third of total CPI, rose 0.3% on the month, as did owners-equivalent rent, one of the categories that tracks rental prices. The cost of household services jumped 0.8 percent, the most in almost 30 years, as lawn and garden service costs soared 6.1 percent, the most since December 1997.

The New Zealand two-year swap rate was at 1.3123 per cent from 1.3242 late yesterday, while the 10-year swap rate was at 1.7450 per cent from 1.7400 per cent.

According to the Department of Labour, the headline rate of consumer prices edged up at a 0.1% month-on-month pace in June, so that the year-on-year rate was steady at 1.6%.

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