Ben Bernanke posts
Gold has been lingering around the $1,335 per ounce for the past several weeks. This prompted many hedge funds to sell their holdings.
Then came the turmoil in the Mideast. First Tunisia and Egypt, now Libya, Bahrain, Yemen and others. That was the catalyst that gold needed. It shot to a new record high of $1,432.10 in the spot market. April gold futures settled at $1,431.20 per ounce, as reported in Reuters.
Continue reading Gold Soars to a Record High on Mideast Turmoil
After two years of steadily rising commodity prices, Federal Reserve chairman Ben Bernanke finally admits to it. Quoted in Bloomberg/Businessweek
in his testimony before Congress Bernanke said: "Sustained rises in the price of oil or other commodities would represent a threat both to economic growth and to overall price stability, particularly if they were to cause inflation expectations to become less well anchored."
"We will continue to monitor these developments closely and are prepared to respond as necessary to best support the ongoing recovery in a context of price stability."
Continue reading Bernanke Finally Admits to Inflation Gain from Commodity Prices
U.S. stock futures are lower Wednesday morning as investors await comments from Federal Reserve Chairman Ben Bernanke. Futures for the Dow Jones Industrial Average
dropped 22 points to 12,174.00, while those for the S&P 500 index declined 4.9 points to 1,316.80. Futures for the Nasdaq 100 index fell 7.50 points to 2,355.25.
U.S. stocks closed higher Tuesday, with the Dow gaining 0.59% to close at 12,233.
) is expected to post Q4 EPS of $1.10 on revenue of $13.50 billion. Coca-Cola (KO
) is projected to report Q4 EPS of 72 cents on revenue of $9.75 billion. Northrop Grumman (NOC
) is projected to report its Q4 earnings
at $1.01 per share on revenue of $8.80 billion.
Continue reading U.S. Stock Futures Signal Lower Start on Wall Street
The past week's data-point-of-consequence for investors was delivered by none other than the head of the world's most powerful central bank. U.S. Federal Reserve Chairman Ben Bernanke underscored the nation's need to raise the debt ceiling.
Speaking at a National Press Club luncheon in Washington Thursday, Bernanke said delays in raising the debt ceiling limit, currently $14.3 trillion, could have "catastrophic" consequences, Reuters reported.
Continue reading Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic'
Is Federal Reserve Chairman Ben Bernanke stoking inflation? Of course he is. Anyone with common sense knows that if you give $600 billion cash to the banks with no qualifications -- as he did with the second round of quantitative easing -- they will use it to speculate in the markets. JPMorgan Chase (JPM) just bought $1 billion of copper.
Bernanke's fatal mistake was that he placed no restrictions on what the banks would do with his $600 billion. If you opened the banks' books, you can bet that they've invested in commodities, currencies and foreign equities and bonds.
Continue reading Bernanke Denies Causing Inflation
Friday's fourth-quarter GDP numbers offered more evidence that the economy is picking up steam, but one of the biggest obstacles to the recovery remains the stubbornly high unemployment rate. We'll find out whether there's been any movement on that front when employment data for January comes out this week. The Challenger Job-Cut report and ADP employment data are due Wednesday, and the government's unemployment rate on Friday. Another mild increase in jobs is expected, in line with the three-month average, but not enough to significantly reduce the unemployment rate.
Also look for the ISM manufacturing and nonmanufacturing indexes this week, as well as the Chicago PMI and the New York NAPM index. And Fed Chairman Ben Bernanke will speak to the National Press Club on Thursday.
Continue reading Week in Preview: January Employment Data, UPS Earnings and More
The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that quantitative easing will continue with the purchase of "$600 billion of longer-term Treasury securities by the end of the second quarter of 2011."
There were no dissents against the FOMC statement.
The FOMC left its options open for the future and gave no specific guidance as to what actions it will take when QE2 ends.
Continue reading The Fed Decision: It's All about Unemployment!
Although the U.S. economy has added jobs in recent months, the unemployment rate remains uncomfortably high at 9.8%. The rate for December is due out on Friday and is expected to drop to 9.7%. However, no one seems to expect significant improvement until well into the new year.
Other economic data on this week's schedule include:
Continue reading Week in Preview: Unemployment Rate, Retail and Auto Sales
"Home Prices Are About to Bottom" was the headline for the Barron's cover story the week of July 14, 2008. The story explained that the housing market should level off in many areas of the country by the end of the year.
I have made some equally unfortunate prognostications in my tenure at BloggingStocks, so my purpose is not to poke fun at Barron's but to point out that here we are, over two years later, and it is still debatable whether the housing market has bottomed out.
Continue reading Chasing Value: "Home Prices Are About to Bottom"
This afternoon, the Federal Reserve Bank released its latest Beige Book reading on the current state of American economic conditions. The good news is that the survey reported modest economic growth across the Fed's 12 regional districts
. The bad news is that the Beige Book found no signs of an increase in hiring. The Beige Book found "Many firms reluctant to add to permanent payrolls given economic softness."
Why is the Beige Book important? Many experts feel that this report gives the Fed a better read on the current economic conditions, which could give some hint as to what action the Central Bank will take when it meets next in early November. Judging by the tepid reaction on the Street, this report lent little credence to any belief that the Fed will take any noticeable action.
Continue reading Fed's Beige Book Shows Moderate Growth, Market Doesn't React
U.S. Federal Reserve Chairman Ben Bernanke gave his reasons for more quantitative easing, dubbed QE2, in a speech at the Federal Reserve Bank of Boston, and reported in the Wall Street Journal.
The linchpin of his thesis is that inflation is too low, currently running at 1.1%. This is lower than the 2% level that the Fed had previously set.
Bernanke gave a rather gloomy assessment of the economy, saying that business spending has slowed, consumer finances are improving unevenly, housing remains depressed and job growth isn't enough to bring down unemployment.
Continue reading Bernanke: Inflation Too Low and Economic Growth Too Slow
There is growing debate over whether another round of quantitative easing (QE2) will ease unemployment.
In an interview with the Financial Times, Philadelphia Fed President Charles Plosser set out guidelines for more stimulus. He said: "I think that before we engage in further quantitative easing, we need to be very clear about what it is we are trying to do, how we're going to go about doing it, how we're going to measure whether we're effective at it or not, and how we're going to communicate that."
Continue reading Philly Fed President: How Will QE2 Ease Unemployment?
Jim Rogers, chairman of Rogers Holdings, has long advocated fiscal conservatism. In a recent interview for CNBC, he told the U.S. to stop printing money, bite the bullet and go on an austerity program. His ideas are sound but are falling on deaf ears at the Federal Reserve. Rogers said that he would rather have Europe manage our fiscal policy.
We must remember that Fed chairman Ben Bernanke has already pledged and spent $12.8 trillion dollars to bail a handful of bankers. Now he says he will spend more if needed. He is already pumping money into the economy by buying treasuries with the proceeds of expiring securities.
Continue reading Rogers: U.S. Should Adopt Austerity Measures
Next Page >