Latest news with #Kugler
Yahoo
3 days ago
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Fed's Kugler: Must Examine If Role of US Assets Is Changing
Federal Reserve Governor Adriana Kugler stressed the importance of examining how potential changes in the desirability of American financial assets could affect financial stability "both domestically and internationally." Kugler spoke Thursday at the 5th Annual Federal Reserve Board Macro-Finance Workshop.
Yahoo
4 days ago
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Canadian payrolls dip again in March, job vacancies hold steady
-- Canadian employers cut payroll positions for a second consecutive month in March, underscoring a cautious hiring environment amid uncertain economic conditions. Statistics Canada reported a loss of 54,100 payroll jobs, or 0.3%, building on February's decline of 40,200 positions. The contraction in payroll employment spread across half of the monitored sectors, with educational services, health and social assistance, accommodation and food services, and retail trade leading declines. Educational services shed 10,400 jobs, while health care lost 9,500—its first drop since June 2024. Accommodation and food services posted its third straight monthly payroll contraction, bringing total losses since January to 22,100 positions—or a 1.7% reduction. Retail trade, meanwhile, extended a long-running downswing that began in early 2023, shedding another 8,400 positions in March. Wholesale trade and construction also posted declines in March, with cumulative losses in those sectors since December and January respectively standing at 7,300 and 17,800 payroll jobs. Still, some gains were recorded in resource-heavy sectors, including mining, quarrying, and oil and gas, which added 2,500 jobs (+1.1%). Job vacancies in March held steady at 529,700, marking the seventh straight month of little change, although the total stood 12.1% below year-ago levels. The job vacancy rate ticked up slightly to 3.0% from 2.9% in February, but remained below the 3.4% seen in March 2024. Retail trade saw the sharpest decline in monthly job vacancies, falling 8.4% to 48,200 available roles, with broader year-over-year reductions of 19.3%. However, transportation and warehousing, utilities, and management sectors all recorded vacancy gains in March. Health care and social assistance continued to post elevated vacancy numbers despite a year-over-year decline of 14.4%, with openings still significantly above pre-pandemic levels. Average weekly earnings rose 4.3% year-on-year in March to $1,291, though earnings were little changed from February. Related articles Canadian payrolls dip again in March, job vacancies hold steady Fed Governor Kugler monitoring markets amid trade shifts, dollar concerns Capital Economics still sees global growth below 3% this year Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
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Fed Governor Kugler monitoring markets amid trade shifts, dollar concerns
-- Federal Reserve Governor Adriana Kugler expressed concern on Thursday about the impact of changing trade policies and a potential decrease in investor interest in U.S. dollar assets. She emphasized the importance of understanding how a company's financial health intersects with its international trade exposure, particularly in the current uncertain global economic landscape. Kugler did not provide any future predictions about monetary policy or the economic outlook during her speech at a central bank conference. Her comments come in the midst of an ongoing trade war initiated by President Donald Trump, which has unsettled financial markets and increased economic outlook risks. The president's rapidly changing attempts to significantly raise import taxes to encourage a resurgence of domestic manufacturing suffered a significant setback on Monday. A court decision invalidated a large portion of the current tariff schedule. Many Fed officials and private sector economists believe that the tariffs will likely cause a temporary increase in inflation, while simultaneously increasing unemployment and slowing growth. The president's trade policy has also caused significant volatility in global financial markets and seems to be driving a shift away from dollar-denominated assets. This could have significant implications for the future of the American economy. Kugler highlighted her monitoring of the financial stability implications of a potential decrease in the attractiveness of U.S. financial assets during flight-to-safety events. Recent market activity has shown a reduced interest in U.S. assets as safe havens during periods of stress. Kugler stressed the importance of examining how potential changes in the role of U.S. financial assets as a safe haven might affect financial stability both domestically and internationally. Her comments followed the release of the minutes from the Federal Open Market Committee meeting on May 6-7. During the meeting, some officials expressed concern about how investors approached U.S. assets during the market difficulties in April, as government bond yields increased while the dollar, stocks, and other assets lost value. The minutes noted that a lasting change in these correlations or a decrease in the perceived safe-haven status of U.S. assets could have long-term implications for the economy. Related articles Fed Governor Kugler monitoring markets amid trade shifts, dollar concerns Capital Economics still sees global growth below 3% this year Powell meets Trump, says monetary policy remains data-dependent Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
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4 days ago
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Capital Economics still sees global growth below 3% this year
-- Global growth will likely remain subdued in 2025 despite some recent bright spots, according to Capital Economics. In a note to clients Thursday, the research firm reaffirmed its forecast for global GDP growth 'of a bit below 3% this year,' citing mixed data and persistent headwinds across key regions. While world trade has shown signs of resilience, boosted in part by companies 'attempting to front-run tariffs,' broader economic indicators have been less encouraging. 'Business surveys have softened, and falling consumer confidence bodes ill for domestic demand in advanced economies,' analysts at Capital Economics wrote in their May Global Economics Chart Pack note. The firm adds that China, which has been a key driver of global growth in past cycles, also appears to be struggling. 'Services activity has slowed in China too, and by more than official data suggests,' the analysts warned. The recent U.S. court ruling against a suite of tariffs imposed under the International Emergency Economic Powers Act is said to only offer limited relief, according to the firm. 'The legal ruling against tariffs in the US may grant only temporary reprieve, as the administration eventually reimposes tariffs one way or another,' they added. On a more positive note, the firm acknowledges that labor markets around the world remain relatively robust. 'Labour markets remain healthy, with gradual cooldowns offering hope of wage growth easing in the months ahead,' the firm stated. Still, high services inflation is seen as a constraint on policy easing. 'Headline inflation has fallen this year, [but] services inflation remains high, limiting the scale of interest rate cuts in the year ahead, especially in many parts of emerging Europe and Latin America,' Capital Economics said. Related articles Capital Economics still sees global growth below 3% this year Fed Governor Kugler monitoring markets amid trade shifts, dollar concerns Powell meets Trump, says monetary policy remains data-dependent
Yahoo
4 days ago
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Fed's Kugler says monitoring markets amid big policy shifts
By Michael S. Derby (Reuters) - Federal Reserve Governor Adriana Kugler said on Thursday she's closely watching markets amid substantial shifts in trade policy and possible diminished investor desire to hold U.S. dollar assets. 'I have been paying attention to the possible interaction between the financial vulnerabilities of firms and their exposure to trade,' Kugler said. 'As global economic tensions rise and supply chains evolve, understanding how a company's financial health intersects with its international trade exposure becomes increasingly crucial' amid what the Fed official called 'an uncertain global economic landscape.' Kugler, whose comments came from the text of a speech prepared for delivery before a conference at the central bank, did not make any forward-looking comments about monetary policy or the economic outlook. The central banker spoke as President Donald Trump's trade war continues to keep financial markets unsettled, while at the same time boosting risks around the economic outlook. The president has sought in a rapidly shifting fashion to dramatically increase import taxes to spur a return to the U.S. of manufacturing, although that agenda was dealt a major setback by a court decision Monday invalidating much of the current slate of tariffs. Fed officials and many private sector economists believe the tariffs will likely increase inflation at least for a time, while pushing up unemployment and depressing growth. The president's trade policy has also introduced heavy volatility into global financial markets and appears to be fueling a move away from dollar-denominated assets, which could have big implications for the future of the American economy. 'I have been monitoring the financial stability implications of the potential lower desirability of U.S. financial assets in flight-to-safety events,' Kugler said, as recent market moves have shown less safe-haven interest in U.S. assets during periods of stress. 'As the global economic landscape shifts, it is crucial to examine how possible changes in the role of U.S. financial assets as a safe haven might affect financial stability both domestically and internationally,' Kugler said. Kugler's remarks followed the release on Wednesday of meeting minutes from the central bank's May 6-7 rate-setting Federal Open Market Committee meeting. Then, some officials noted concern about how investors approached U.S. assets during April's market woes, as government bond yields rose while the dollar lost ground along with stocks and other assets. 'These participants noted that a durable shift in such correlations or a diminution of the perceived safe-haven status of U.S. assets could have long-lasting implications for the economy,' the Fed meeting minutes said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
