Wall Street closes lower as Federal Reserve considers trimming its balance sheet
Apr 06, 2017, 02:23
Most Federal Reserve policymakers believe that the central bank should begin trimming back its $4.5 trillion balance sheet this year, provided that economic data holds up.
At a news conference after the Fed's policymaking committee announced the rate hike in March, Fed chair Janet Yellen emphasize that the committee wants to use changes in the short-term interest rate target as its main tool for influencing monetary policy, not the balance sheet. The minutes showed that Fed officials mostly preferred to tie the change to the strength of the economy, and to gradually phase out reinvestments of the proceeds from the Treasury and mortgage-backed securities that mature, rather than suddenly ceasing reinvestments altogether.
Interestingly, some members of the Fed also noted that seemingly non-economic policies that Trump has thrown around could end up weighing on economic activity.
Parts of his agenda, such as healthcare - which has considerable consequences for taxation - have stalled amid divisions in the majority Republican Party.
The central bankers now expected President Donald Trump's plans for expansionary fiscal policy would likely not begin until 2018.
While FOMC members expected gradual economic growth, the minutes also show some disagreement over the near-term dangers of inflation.
Members were split over whether stronger inflation warranted faster hikes now or a more gradual pace given the persistence of low inflation in the past.
But Mr Weston said the minutes were not the only factor weighing on investors overnight. Reducing the balance sheet could have the same impact on the markets as a rate hike.
"Fed officials remain split on the question of how much inflation pressure is now in the system. but it has become hard for doves to argue that the economy is still some way from full employment", he wrote.
The committee made no decisions regarding the balance sheet and agreed to renew the discussion at subsequent meetings.
"At the same time, several participants cautioned that upcoming elections in European Union countries posed both near-term and longer-term risks", the minutes said.
Concern about that possibility contributed to a selloff of stocks Wednesday afternoon after the minutes of the Fed's March meeting were released. Many economists have said they think rate increases will occur at the June and September meetings.
US stocks SPX, +0.56% pared gains after the release of the minutes, and the yields on government bonds TMUBMUSD10Y, +0.30% rose.
Among major United States indices, the Nasdaq fell the most at 0.6 per cent after earlier hitting an all-time intraday high earlier in the day.
The Northern Irishman led the tournament going into the final round in 2011 but carded an ugly 80 to blow his chances. He's had a strong 2017 to date, too, with three finishes in the top seven in his first three events. "I was torn.
Cohen-Watnick was an underling of Michael Flynn, the ousted national security adviser whom McMaster replaced. After appealing to Steve Bannon and Jared Kushner, the Post reported , Cohen-Watnick was reinstated.
And they "must be courteous and must respect taxpayer rights", according to the agency. "Here's a simple rule to keep in mind". The IRS looks at the taxpayer's income and assets to make a determination regarding the taxpayer's ability to pay.
Some promotional offers make it possible to watch the all-cricket network, including Tuesday's Sri Lanka vs. Sri Lanka eased to a comfortable 6-wicket win in the first T20I at the R Premadasa Stadium, Colombo .
Hillary Clinton seems to be enjoying being in the spotlight again since her defeat in the presidential race late a year ago . Imagine that a political leader who speaks from experience, knowledge, empathy, passion, and power about human rights.
In contrast just 5.5 per cent of Danish babies cry for more than three hours a day, and only 6.7 per cent of German babies. Colic has always been defined as infant crying that lasts longer than three hours a day for at least three days a week.
In 2009, Subramanian Swami and GVL Rao alleged that the EVMs had been tampered with after the Congress party came back to power. He said that "someone joked, saying: ' Ab toh ho gaya (Now we're done for)'", creating an impression of something gone amiss.
In related news, Chairman William Clay Ford , Jr. acquired 171,379 shares of the stock in a transaction dated Friday, March 24th. In February, auto sales remained flat amid incentive-splurge and the bump up provided by the President's Day holiday weekend.
Until Trump turned his Twitter on them this week, most members of the Freedom Caucus were actually pretty close to the president. With over 170 members, it's much larger than the Freedom Caucus. "Freedom Caucus stood with u when others ran", Labrador wrote .
Yates was sacked in January as acting attorney general after she refused to defend the Trump administration's first travel ban. Nunes said on Tuesday he has "no idea" why Democrats would call for him to step aside from the investigation.
De'Aaron Fox and Kentucky show UCLA the exit
Kentucky's offense also was fueled by Malik Monk , who found his shooting stroke to the tune of 21 points, including three points. Kentucky point guard De'Aaron Fox got the better of Lonzo Ball , in a big way, on Friday night in the Sweet 16.
Rob Gronkowski Gets in the Ring for WrestleMania 33
A star of the NFL, Gronkowski is a Super Bowl victor with the Patriots, and is one of the best tight-ends in American Football. The final three were Rawley, Jinder Mahal, and Killian Dain , the big muscle of NXT's SAnitY faction.
Chelsea Clinton: I'm Not the Person to Defeat Trump
When asked if the former presidential candidate would run again in the future, her daughter responded , "I don't think so". But I think we all need to be asking ourselves that question periodically, ' she added. "I don't think so", she said.
Complete list of Jets' offseason program dates announced
However, no live contact is allowed, but this is where we begin to see the 7-on-7, 9-on-9 and full 11-on-11 drills and practices. This part of the offseason is voluntary, with player attendance under Chuck Pagano hovering over 90 percent in past years.
NWS: Risk of Severe Thunderstorms Today
Parts of the Landstown area saw damage, with roofs missing and chunks of siding pulled off homes, with contents spilling out. We will climb into the mid 80s Tuesday and Wednesday with a cold front bringing in a slight chance for rain Wednesday.
Tucson police: Remains of missing 6-year-old found
Anxious about what could have happened to his daughter, her father reported her missing to the Tucson, Arizona police. Police say they have investigated more than 2,200 leads since the girl's disappearance nearly five years ago.
Negotiator denies UK is blackmailing EU on security
The two issues had been mentioned side by side because they were "all bound up in our membership of the European Union", he said. Brexit Secretary David Davis has said this is an important step in giving certainty to businesses, workers and consumers.