#Fed’s Powell says some asset prices are elevated but not extremely so.
Archives of “May 2019” month
rssPowell: “Asset Prices Are Elevated, But Not Extreme”
Swedish PMI Manufacturing 50.9 vs estimated 52.8 lowest since July 2013
$USDSEK above resistance going back to March 2009
Hedge fund says ‘humans tend to do better when they are aided by quantitative tools’
That comment from chief executive officer of Blackstone Group LP’s alternative asset management business.
Speaking at a hedge fund conference on the role of algos/robots/call-em-what-you-like in investment decisions. The industry is using:
- big-data analysis
- machine learning
- other types of artificial intelligence
to research investments or build on ideas.
While we await some return-from-a-day-ff Europe to get active, worth checking out, for interest if nothing else.
Here is the link: Human hedge fund managers embrace robot-rival tools to amp returns
South Korea Foreign Minister says Trump and Kim are willing to hold a 3rd summit!
Comments from the SK foreign minister
- Says North Korea did not show change in its nuclear strategy
- Trump and Kim are willing to hold a third summit
Srsly … those two statement together do not make much sense. Why meet again when the first one produced nothing and the second ended in a debacle?
Still, comments from South Korea. Gotta give him some latitude as he (and his countrymen and woman) have to live next door to the dangerous nut job.
Reuters report: Canada farm minister informed that China has blocked two Canadian pork exporters
The Chinese government has informed Canada’s agriculture department that two Canadian pork exporters have had their export permits suspended.
Agriculture Minister Marie-Claude Bibeau said she has not yet received an official notice from China of the permit suspensions
—
Curious news. I would have though with all the strife in China’s domestic pork industry restring import would be low on the list of actions to take.
Incredible description of the South Sea / Mississippi Company bubbles. Unreal writing. (1889)
ICYMI – FOMC recap
The Federal Open Market Committee announcement and Powell’s presser were Wednesday US time.
- No signal of a policy shift from the Committee. No one expcted any, so no surprise here. in policy today.
- FOMC cut to interest on excess reserves IOER (by 0.05%) – this a technical adjustment to keep fed funds rate within the target range
- There was an acknowledgement of weaker inflation in the statement … Chair Powell followed up in news conference saying weak inflation pressures may be cause by transitory factors
Summing up … not as dovish as was expected. USD gained, stocks took a wee hit lower.
US-China trade deal ‘possible’ by next Friday – report
CNBC report
US negotiators are in Beijing today while Chinese officials will head to Washington next week. A deal is ‘possible’ according to a source cited by CNBC.
I doubt this moves the needle much but here’s the report.
The full FOMC statement for May 2019
FOMC statement from the May 2019
Information received since the Federal Open Market Committee met in March indicates that the labor market remains strong and that economic activity rose at a solid rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Growth of household spending and business fixed investment slowed in the first quarter. On a 12-month basis, overall inflation and inflation for items other than food and energy have declined and are running below 2 percent. On balance, market-based measures of inflation compensation have remained low in recent months, and survey-based measures of longer-term inflation expectations are little changed.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
Voting for the FOMC monetary policy action were: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and Eric S. Rosengren.