Economy News
16 décembre 2015Last week's inflation data strengthened expectations that the Fed could succeed in its fight against inflation, while risk appetite in the markets increased.
On the other hand, although it is noteworthy that Fed officials still maintain their cautious stance, it is estimated that the bank will most likely start cutting interest rates as of June next year in the pricing in the money markets.
Fed's Vice President for Supervision Michael Barr stated that interest rates are at or near the peak they should be at, while Boston Fed President Susan Collins stated that inflation news is promising and said that the economy is rebalancing.
Emphasizing that additional tightening was not off the table, Collins said it was too early to declare victory against high inflation.
“ San Francisco Fed President Mary Daly said she was not sure whether inflation was on track for 2 percent, arguing that the Fed should be patient and resist pressure to move quickly.
Chicago Fed President Austan Goolsbee, on the other hand, said there was a gap between the data and the thoughts of consumers and businesses about the economy, noting that inflation was still high despite the improvement.
On the other hand, although data released in the country on Friday indicated that the housing market remained strong, the dollar continues to decline against other developed currencies.. ”
While the dollar index fell to 103.5, the lowest level since September 1, it is being monitored whether the buying-heavy course followed last week in bond markets will continue.
While the US 10-year bond interest rate stabilized at 4.45 percent on the first trading day of the new week, volatility in bond markets is expected to increase according to the demand for 20-year bonds in the bond issue to be held in the US.
The ounce price of gold started the week at $ 1,981, up 0.2 percent, while the barrel price of Brent oil is trading at $ 81.2 with a 0.9 percent gain.
With these developments, the Nasdaq index increased by 0.08 percent, the S&P 500 index by 0.13 percent and the Dow Jones index by 0.01 percent on Friday on the New York stock exchange. Index futures contracts in the US started the new week with a horizontal course.
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