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Livesquawk - Closing Wrap - Wednesday 28.04
Closing Wrap - Wednesday 28.04
Headlines
  • Fed Strengthens View Of Economy While Keeping Rates Near Zero
  • Fed’s Powell: We Don't Need To Get All The Way To Our Goals To Taper
  • Pelosi Defends Biden's Proposed Tax Increase
  • US Treasury Says IRS Investments To Boost Revenue By $700 Bln Over A Decade
  • USTR Tai: Any Metals Tariff Deal With EU Must Address Global Excess Capacity
  • Top Biden Officials Plan Mideast Trip Over Iran, F-35 Concerns
  • Foster To Quit As DUP Leader And Northern Ireland First Minister
  • US Goods Trade Deficit Vaults To Record High In March
  • Boeing Burns More Cash On 787 Delivery Halt, Max Restitution
  • Humana Beats Profit And Revenue Expectations, Affirms Full-Year Outlook
Commentary
Fed Strengthens View Of Economy While Keeping Rates Near Zero

Federal Reserve officials strengthened their assessment of the economy on Wednesday and signalled that risks have diminished while leaving their key interest rate near zero and maintaining a $120 billion monthly pace of asset purchases.

 

“Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened,” the Federal Open Market Committee said in a statement following the conclusion of its two-day policy meeting. “The sectors most adversely affected by the pandemic remain weak but have shown improvement. Inflation has risen, largely reflecting transitory factors.”

 

 

Marking a clear improvement since the pandemic took hold more than a year ago, the Fed said that “risks to the economic outlook remain,” softening previous language that referred to the virus posing “considerable risks.” The statement also noted that sectors hit hardest by the Covid-19 pandemic had “shown improvement.”

 

Ten-year treasury yields rose to its high of the day before paring back, while inflation expectations over the decade held near their highest since April 2013. The dollar moved toward its lows of the day and the S&P 500 moved higher. (Bloomberg - Continue Reading)

Strong US Growth Expected In Q1 Thanks To Cheques and Jabs

Growth in the world’s largest economy is expected to show improvement yet again in the first quarter thanks to stimulus cheques from two different Washington administrations.

 

President Joe Biden and the Democrats controlling the upper and lower houses of the US government ushered in USD 1,400 payments as part of their USD 1.9 tln stimulus package, and more than 100 mln Americans received their money last month. Pay-outs courtesy of former President Donald Trump and a Republican-controlled upper house put USD 600 in the pockets of Americans in January.

 

An economists’ poll says US quarterly growth reached 6.1% in the first quarter following the 4.3% rise in the final three months of 2020. (LiveSquawk - Continue Reading)

Vaccine Rollout Starts To Lift Consumer Confidence Across Europe

The vaccine rollout is beginning to have a positive influence on consumer confidence throughout Europe, as near-term economic improvement appears more certain, Moody's Investors Service says today in the latest COVID Recovery Monitor - Europe.

 

Although social restrictions remain high, consumers and businesses have learned to adapt and are showing increasing optimism in the five biggest European economies covered by this report.

 

"As vaccination levels in the European Union slowly rise, consumers are increasingly expecting a general improvement in the economy within the next 12 months, lifting overall confidence," said Vincent Allilaire, a Moody's Vice President - Senior Credit Officer. "Retail sales are also recovering some momentum, and mobility data show signs that consumers continue to adapt to the more rigid social constraints imposed in recent months." (Moody’s - Continue Reading)

Mortgage Refinancing Initiative To Help Lower-Income Borrowers

The federal regulator of Fannie Mae and Freddie Mac unveiled a new program Wednesday aimed at helping more households lock in historically low interest rates, targeting lower-income borrowers who have missed out on the refinancing boom of the past year.

 

The Federal Housing Finance Agency, which oversees the two government-controlled mortgage giants, announced plans to ease credit requirements, simplify documentation and waive certain fees for borrowers seeking to refinance their loans. The program is expected to get off the ground by the summer. (WSJ - Continue Reading)

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