gdp Archives - MKTPlace https://mktplace.org/tag/gdp/ all about trading, Fintech, Business, AI & technology in one place Thu, 25 Mar 2021 11:59:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://mktplace.org/wp-content/uploads/2021/03/favicon.png gdp Archives - MKTPlace https://mktplace.org/tag/gdp/ 32 32 Fed’s Yellen Hints Rate Hike, but Stresses Patience https://mktplace.org/feds-yellen-hints-at-2015-rate-hike-but-stresses-patience/ https://mktplace.org/feds-yellen-hints-at-2015-rate-hike-but-stresses-patience/#respond Thu, 26 Feb 2015 07:00:19 +0000 http://www.tradersdna.com/?p=33107

The Federal Reserve could begin normalizing interest rates this year, but won’t rush to do so amid tepid wage growth and tame inflation, central bank Chairwoman Janet Yellen said on Tuesday.

Testifying before Congress, Yellen sought to lay the groundwork for how the Federal Reserve would begin raising interest rates after more than six years. She continued to stress patience in normalizing monetary policy, echoing the Federal Open Market Committee’s January rate statement.

The Federal Reserve “will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis,” Yellen told Congress on Tuesday. However, Yelllen was careful to manage expectations, stressing that the Fed’s eventual change in language would not necessarily translate into a shift in policy.

“It is important to emphasize that a modification of the forward guidance should not be read as indicating that the [Federal Reserve] will necessarily increase the target rate in a couple of meetings,” she added. “The modification should be understood as reflecting the [Federal Reserve’s] judgment that conditions have improved to the point where it will soon be the case that a change in the target range could be warranted at any meeting,”

The data-driven Fed has relied on the economic indicators to adjust monetary policy, having closed the books on a record bond-buying program only last October. Yellen said on Tuesday that unemployment was still too high, despite acknowledging broad improvements “on many dimensions.” Unemployment edged up slightly to 5.7 percent in January as workforce participation increased. Employers added 257,000 jobs in January and have added an average of 336,000 jobs per month over the last three months.

While several Fed officials have indicated they would like to have the option to raise interest rates in June, the minutes of the January FOMC meetings revealed growing concerns about tame inflation and a volatile global economy. For its part, the Fed has remained consistent in its messaging since December, when it first started using the word patience to describe interest rate adjustments.

The FOMC’s next meetings will be held in Washington on March 17-18. They will be accompanied by revised GDP, inflation and employment forecasts, as well as the closely followed “dot-plot” chart of interest rate expectations. The Fed’s December forecast showed policymakers anticipated interest rates to rise to 1.125 percent by the end of the year.

]]> https://mktplace.org/feds-yellen-hints-at-2015-rate-hike-but-stresses-patience/feed/ 0 Greece, Troika Resume Talks Following Eurogroup Breakdown https://mktplace.org/greece-troika-resume-talks-following-eurogroup-breakdown/ https://mktplace.org/greece-troika-resume-talks-following-eurogroup-breakdown/#respond Mon, 16 Feb 2015 07:00:29 +0000 http://www.tradersdna.com/?p=33021

Greece and its Troika of international lenders resumed talks on Friday after the Hellenic Republic failed to reach an agreement with its European partners at Wednesday’s ministerial meetings.

Talks between Greece and Eurozone finance ministers broke down on Wednesday after both sides failed to reach a political agreement on how to keep Greece financed past February. According to Eurogroup President Jeroen Dijsselbloem, no “common ground” was reached that would allow both sides to move forward.

“We need a political decision before the financial institutions can get to work. We might make the final progress we need at next Monday’s Eurogroup meeting,” Dijsselbloem said after Wednesday’s Eurogroup meetings.

The newly appointed Greek government headed by Alexis Tsipras has vowed to renegotiate his country’s €240 billion bailout plan and put an end to “cruel” austerity. His far-left Syriza party successfully campaigned on the platform of “anti-austerity,” promising its voters to raise the minimum and cut taxes. Syriza secured 149 of 300 seats in the Hellenic Parliament in January’s snap elections.

Monday’s ministerial meetings could be the last moment for the newly elected Greek government to ask for an extension of the current bailout program, which expires February 28. Mr. Tsipras said on Monday his country would not seek an extension of the current bailout, but would instead focus on finding a new agreement. Given the breakdown in talks on Wednesday, the Greek government may seek a “technical” extension to shore up support for broader reforms in the future. Sources close to the talks suggest Greece could ask for a longer bridge loan through August to cover the government’s immediate funding needs.

Despite suffering an immense economic collapse during the Great Recession, Greece is still part of the Eurozone’s long term plan, a sign European lawmakers are willing to consider relaxing some of the bailout terms. Greece’s exit from the Eurozone, it is feared, could trigger a mass exodus from the fledgling currency union.

In economic data, Greece’s economy shrank once again in the fourth quarter, official data revealed today. Greece’s gross domestic product declined 0.2 percent quarter-on-quarter, following an increase of 0.7 percent in the July to September period.

Meanwhile, the Eurozone economy expanded 0.3 percent in the fourth quarter, following a 0.2 percent increase in the second quarter. A median estimate of economists called for an increase of 0.2 percent. In annualized terms, Eurozone GDP expanded 0.9 percent, official data showed.

]]> https://mktplace.org/greece-troika-resume-talks-following-eurogroup-breakdown/feed/ 0 EUR/USD Edges Higher Amid Greek Bailout Talks, Disappointing US Data https://mktplace.org/eurusd-edges-higher-amid-greek-bailout-talks-disappointing-us-data/ https://mktplace.org/eurusd-edges-higher-amid-greek-bailout-talks-disappointing-us-data/#respond Sat, 14 Feb 2015 07:00:10 +0000 http://www.tradersdna.com/?p=33023

The EUR/USD advanced for a second consecutive day on Friday as Greece resumed talks with its Troika of creditors, while the US dollar continued to retreat following disappointing retail sales data.

The EUR/USD climbed 0.12 percent to 1.1413, easing off an earlier high of 1.1445. The pair is pacing toward a weekly gain of 0.75 percent. Near-term support is likely found at 1.1325. On the upside, initial resistance is likely found at 1.1461. A break above this level would expose 1.15.

Talks between Greece and its international creditors resumed on Friday in an effort to keep the country financed after February 28, the deadline for the current bailout program. Eurozone finance ministers will hold a second round of talks on Monday. Negotiations broke down earlier this week after Greece and its Eurozone counterparts failed to establish common ground on a new agreement.

Meanwhile, a fresh wave of violence broke out in eastern Ukraine after European leaders agreed to a peace deal in Minsk earlier this week, as rebel forces and Ukrainian troops fought for control over the strategic town of Debaltseve.

Growing instability in Ukraine could dampen near-term support for the euro and other “riskier” assets, as investors opt for the security of safe-haven assets like gold and the Japanese yen.

In economic data, Eurozone GDP rose faster than forecast in the fourth quarter, generating cautious optimism about the region’s nascent recovery. Eurozone GDP rose 0.3 percent quarter-on-quarter and 0.9 percent annually, official data showed. The gains were spearheaded by Germany, which rebounded sharply in the fourth quarter, growing at an annual rate of 1.6 percent.

The struggling Greek economy contracted in the fourth quarter, declining 0.2 percent.

Meanwhile, US data continued to disappoint on Friday, as consumer confidence tumbled from January’s 11-year high. The Thomson Reuters/University of Michigan consumer sentiment index dipped to 93.6 in February from 98.1 in January. A median estimate of economists called for no change.

American consumers are concerned about rising oil prices and were generally less upbeat about the labour market after hearing about layoffs in the oil and gas sector. Consumers’ appraisal of the current situation declined to 103.1 from 109.3, while the barometer of future expectations decreased to 87.5 from 91.

The greenback was generally weaker across the board on Friday. The US dollar index declined further to 94.04, falling 0.05 percent. The index is down 1 point from Wednesday’s high of 95.09.

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