Not exact matches
A jobs number miss will bolster the case that the Fed should wait to raise interest rates until next year and perhaps calm
fears of wage
inflation.
As a result,
inflation is near the top
of the list
of things people
fear about retirement.
Still, the jump isn't stoking
fears of inflation yet.
Investors were watching the report closely after
fears of surging
inflation helped send the stock market lower and bond yields higher.
Forget
inflation fears — Federated sees earnings as the market story
of year Fed's Quarles says it's been «quite some time» since the economy looked this good Fed sees economy past full employment but with only «moderate» wage gains
The
fear of inflation was, in my opinion, one
of the main contributors to the prolonged slump
of the 1930s.
Wednesday's moves come after three volatile sessions in which
fear of rising
inflation sent interest rates higher, pressuring equities.
It was a rough first quarter for bonds, which fell in value amid
fears that
inflation, the archnemesis
of fixed - income investors, was coming back into the picture.
Wall Street stock futures are lower this morning after a fresh set
of depressing
inflation data from China that have revived
fears about it exporting deflation to the rest
of the world.
«You'd have to have a lot
of inflation actually occur, not just
fear of inflation, in order to get up to levels like that.
While moderate
inflation generally supports equity investors, rapid
inflation, or
fear of it, could prompt the Federal Reserve to hike rates faster, undermining the attraction
of equities.
Consider this conundrum in the gold market: The metal has traditionally been a good hedge against
inflation, but it hasn't seen much demand lately even in the face
of rising
inflation fears.
Those concerns triggered a bout
of financial market turmoil, as investors
feared higher interest rates were coming to keep
inflation in check.
The January year - over-year wage increase originally was reported as 2.9 %, the best since 2009, and an uptick that fueled
fears of higher
inflation.
rather than a realistic portrayal
of legitimate
inflation fears - wage or otherwise.
The stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return
of volatility — as skittish investors continue to
fear the sequence I describe in this AM's WaPo: tight labor market, wage pressures, higher interest rates,
inflation, lower profit margins.
Quick answer: no, as the European Central Bank, which has an inate
fear of inflation, felt compelled on Thursday by the economic crisis in Europe to cut its benchmark interest rates by 0.25 percentage points, bringing the refinancing rate to a record low
of 0.75 % and the overnight deposit rate to zero.
Bond investors are in constant
fear of a replay
of the 1970s when interest rates exploded higher in concert with sky high
inflation, a double whammy
of bad news for fixed income securities.
That will have a double effect
of cutting wages and raising unwarranted
inflation fears.
In other words, interest rates are not rising because
of inflation fears, but because rates are starting to normalize from the unsustainably low levels reached earlier this year.
But longer - dated bonds fell over
inflation fears; prices for 30 - year debt sank and fell most
of the day for the benchmark 10 - year Treasury, though the latter turned moderately positive at day's end.
The Fed previously had signaled it plans to raise interest rates two more times this year, but some observers have expressed concerns that the tightening monetary policy would accelerate over
fears of inflation.
A sudden
fear of surging
inflation and higher interest rates helped ignite the past week's stomach - churning stock market losses and violent bouts
of volatility.
If the Fed were to continue hiking rates based on the current low rate
of productivity growth for
fear that
inflation would accelerate, that would tend to keep productivity growth permanently depressed by preventing wage pressures from pushing businesses to investment in productivity boosting technologies.
In bonds, the
fear about Depression gripping the markets had a striking result last week, as investors priced
inflation - protected bonds as if the rate
of inflation would be essentially zero for the next 5 years or more.
One was in the 1990s when the Federal Reserve took action to slow economic growth in response to
fears of inflation.
Ahead
of that this morning we have CPI
inflation data,
fears of low
inflation coupled with a contagion from slow growing and even contracting foreign economies is exactly why we believe the FOMC will not remove the «considerable time» phrase in its statement when referring to raising rates.
Higher wages,
inflation fears and the prospect
of faster than expected rate hikes are posing challenges market players haven't seen for years.
Another sell off in the markets based on
fears from Drumpf damaging economy
of the US by escalating the trade war, job report,
inflation fear.
The
Fear Trade,
of course, is driven by low to negative real interest rates — when
inflation erodes away at government bond yields — deficit spending, a weaker U.S. dollar and geopolitical uncertainty.
Now the current levels
of volatility have emanated from a number
of different sources: political uncertainty, concerns about rising
inflation, concerns about rising interest rates, concerns about a trade war, cybersecurity
fears, all
of these different things.
The market's plunge was ignited by
fear of potentially higher - than - expected
inflation and interest rates.
I'm okay with having money that we'll definitely use in a couple
of years sitting in a bank account, but if we want to not worry about having to buy in a rush for
fear of inflation, then we need to have that money at least keeping up with it.
France's Socialist government announced the first real - terms increase in the minimum wage for six years on Tuesday, but limited the rise to 0.6 percentage points above
inflation as it sought to balance election promises with
fears of damaging employment.
The price
of soya beans is heading towards the record high set during the 2007 - 08 food crisis, which is set to reignite
fears of runaway global food
inflation.
A catalyst for the recent market sell - off was
fear of higher
inflation, and with
inflation indicators pointing upwards, the dollar and the stock markets could be in for rough ride in the coming weeks.
The European Central Bank's ultra-low key interest rate, while appropriate for the ailing PIIGS nations, is too low for faster - growing Germany resulting in negative real interest rates and
fears of inflation.
If you stay employed a bit
of inflation is not to be
feared.
Market commentators ascribed this change to many factors, but trade war
fears, a hint
of increase in the rate
of inflation and rising interest rates almost certainly contributed.
But policy makers appeared to hint that they had little
fear that
inflation was running out
of control, which traders took as a sign the Fed won't feel compelled to move more aggressively than expected to lift rates in the future.
The bottom line here is this: none
of these investment vehicles are perfect, in fact many have significant flaws; but despite their flaws they attract money away from gold, thus undermining gold's monopoly on the
fear /
inflation / currency debasement trade.
The unsavoriness
of Bullard's comment is not that he
fears a downturn in
inflation, and maybe lower growth, but that Bullard seemed to find his DOVISH posture as the U.S. markets were heading toward the August lows.
Random Items: The «Republic
of Fear» Is Dead Gross
inflation Strange Bedfellows: Louis Navellier & Eliot Spitzer Slower Earnings Growth: Fact vs.
Fear I link, therefore I am Chairman Greenspan Before the World Affairs Council, 12/11/03
We are,
of course, fully aware
of the possibility that people may
fear that this temporary period
of high
inflation could, in fact, turn out to be persistent.
Even during the 1970s, the period when the gold price famously rocketed upward in parallel with increasing
fear of «
inflation», the gold rally was mostly about declining real interest rates and declining confidence in both monetary and fiscal governance.
So the bond market, the sovereign bond market, is beginning to react to a
fear of inflation.
The strengthening global economy and expectations
of U.S. fiscal stimulus appear to be heralding a turnaround in market sentiment after
fears of near - zero headline
inflation two years ago.
That large rises in the gold price are NOT primarily driven by increasing
fear of «
inflation» is evidenced by the fact that the large multi-year gold rallies
of 2001 - 2006 and 2008 - 2011 began amidst FALLING
inflation expectations.
There was a mild form
of inflation fears about a year ago and then it went away.
By enshrining zero percent
inflation as the ideal, both
of them reflect an exaggerated
fear of even moderate
inflation that is not supported by the preponderance
of evidence.