Sep 14, 10:23 PM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury World By John BIERS 09/14/19 AT 10:00 PM President Donald Trump's attacks on the US Federal Reserve make financial markets cringe, but his demand for zero interest rates makes banks sweat.As the Fed reverses course and is poised to cut the benchmark lending rate a second time on Wednesday, large US banks have signaled they expect a bigger hit to their bottom line.Banks including JPMorgan Chase and Wells Fargo last week trimmed their 2019 forecasts for profits tied to interest rates as central banks around the world loosen monetary policy in response to a weakening global growth outlook.Lower interest rates mean less profits on loans made by the banks, especially if they have offered higher returns on deposits to attract customers.Moody's warned in a report Thursday that lower interest rates would crimp bank profitability in general and prompt more mergers in the … [Read more...] about Large US Banks Sweating The Move To Lower Interest Rates
Fed interest rate hike history
By Megan Henney Published September 13, 2019 The Fed FOXBusiness Facebook Twitter Comments Print video Negative interest rate policy is medicine that's worse than the disease: Economist Payden and Rygel chief economist Jeffrey Cleveland discusses ECB's rate cuts and Trump's deliberation to do the same. During one of its most important meetings in recent history, the European Central Bank, on Thursday, announced a sweeping round of stimulus to boost the European Union’s stuttering economy, cutting interest rates to their lowest level ever. Continue Reading Below The ECB said it cut rates by 10 basis points to -0.5 percent, from -0.4 percent, drawing ire from President Trump, who had urged the Federal Reserve in a tweet earlier this week to follow suit and drop interest rates to zero -- or possibly even below zero. "The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt," … [Read more...] about What are negative interest rates and why does Trump want them?
By Megan Henney Published June 18, 2019 The Fed FOXBusiness Facebook Twitter Comments Print video Will the Fed cut rates this year? Wells Fargo Securities Managing Director Mark Vitner on the U.S. trade tensions with China, the state of the U.S. economy and the outlook for Federal Reserve policy. The Federal Reserve kicked off its two-day policy-setting meeting on Tuesday, during which it’s widely expected to leave interest rates unchanged as it opens the door for a cut in July – even as the market clamors for a drop in borrowing costs. Continue Reading Below Most economists anticipate the U.S. central bank will keep the benchmark federal funds rate at 2.25 percent to 2.5 percent. MORE FROM FOXBUSINESS.COM... A FED RATE CUT COULD WRECK BANK EARNINGS - HERE'S WHY WHITE HOUSE EXPLORED LEGALITY OF DEMOTING FED CHAIR JEROME POWELL: REPORT “A rate cut is unlikely since there has not been enough time for the Fed … [Read more...] about Will the Fed cut interest rates during its meeting this week?
Ripping "absurd Federal Reserve Board policy" as the cause for the stock market selloff, economist Stephen Moore called for Federal Reserve Chairman Jerome Powell and his board to be "thrown out for economic malpractice" and "sucking the oxygen out of this booming economy President Donald Trump created. "I think the trigger for this massive sell off has been an absurd Federal Reserve Board policy that I believe the people on the Federal Reserve Board should be thrown out for economic malpractice," Moore told Sunday's "The Cats Roundtable" on 970 AM-N.Y. "What they did on Wednesday when the Fed Chairman was speaking and telling the world that they were going to raise the interest rates – the stock markets, just in the 45 minutes he was speaking, dropped by 600 points. After meeting with President Trump and economist Art Laffer last week, Moore told host John Catsimatidis that Trump is considering firing Powell as chairman of the Fed. "He was infuriated that the … [Read more...] about Stephen Moore: Throw Out the Fed for ‘Economic Malpractice’
Tory Newmyer, The Washington Post Published 7:10 am PST, Tuesday, December 18, 2018 WASHINGTON - The stock market is giving President Donald Trump a lump of coal for Christmas. All three major indexes shed more than 2 percent on Monday, as the S&P 500 notched its lowest close in 14 months. The tech-heavy Nasdaq is down 2.2 percent this year, and the small-cap Russell 2000 index has lost more than 20 percent from its late-summer high, officially putting it in bear market territory. The Dow Jones industrial average and the S&P 500, both down more than 7.5 percent this month, are on track for their worst December performances since 1931, in the pit of the Great Depression. Trump was silent on the latest market down day, extending his pattern of avoiding comment on Wall Street carnage. A year ago this week, he was heralding history-making gains, as his then-imminent signing of a massive tax cut powered stocks higher. But to the extent the promise of Trump's tax cuts … [Read more...] about The Finance 202: Trump continues to bash Fed as markets dip