Latest news with #SanFranciscoFed
New Straits Times
3 days ago
- Business
- New Straits Times
Gold little changed as traders await US inflation data
KUALA LUMPUR: Gold prices inched lower on Friday as investors held back from making big bets ahead of a key US inflation report that could shed more light on the Federal Reserve's policy path. Spot gold was down 0.1 per cent at US$3,312.85 an ounce, as of 0100 GMT. Bullion has gained 0.6 per cent so far in May, heading for its fifth straight monthly rise. US gold futures eased 0.2 per cent to US$3,310.50. Global stocks rose while the US dollar weakened on Thursday as markets digested an ongoing court battle over President Donald Trump's so-called "Liberation Day" tariffs. A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday, a day after a US trade court ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them. Investors now await the April US personal consumption expenditures (PCE) price index report, the Fed's preferred inflation measure, due later in the day. Fed policymakers could still cut interest rates twice this year as they projected in March, San Francisco Fed President Mary Daly said on Thursday, but for now rates should remain steady to make sure inflation is on track to reach the central bank's 2 per cent goal. Data on Thursday showed that the number of Americans filing new applications for unemployment benefits increased more than expected last week. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.50 per cent to 930.20 metric tons on Thursday from 925.61 tons on Wednesday. Elsewhere, spot silver fell 0.3 per cent to US$33.23 an ounce, platinum was down 0.1 per cent at US$1,080.93 and palladium edged 0.1 per cent lower to US$972.11.
Bloomberg
21-05-2025
- Business
- Bloomberg
Fed's Daly, Hammack Stress Wait-And-See Policy Approach
Two Federal Reserve officials underscored the US central bank can be patient and assess incoming data before adjusting policy as the economy navigates heightened uncertainty. The Fed should stay in a 'central position, and then be prepared to move agilely — but not abruptly or quickly when we don't need to because we don't have enough information,' San Francisco Fed President Mary Daly said Tuesday during the Atlanta Fed's 2025 Financial Markets Conference in Fernandina Beach, Florida.
Axios
06-05-2025
- Business
- Axios
Economic outlook deteriorates in Mountain West
Washington and its neighbors are seeing slower economic growth, more layoffs, and rising costs as the West braces for a downturn, per the latest Federal Reserve's Beige Book report. Why it matters: The region's long-standing affordability crisis could deepen as inflation lingers, layoffs rise, and housing production slows. State of play: The San Francisco Fed — which oversees nine Western states, including Washington — reported that economic activity in the region slowed slightly from mid-February through March. Employment dipped as businesses across industries, including Big Tech, announced layoffs or paused hiring, per the Beige Book. Retailers saw sluggish sales, especially in discretionary categories like clothing and electronics. Prices rose modestly, with elevated pressure on imported goods and raw materials like aluminum, steel and electrical components. Between the lines: Service costs — including insurance, health care and utilities — remained high, even as some hospitality businesses cut prices to attract customers. Many companies received price hike notices from suppliers tied to new or expected tariff increases. Additionally some retailers and hospitality providers in southern California and northern Washington "reported a material drop in cross-border tourism with Canada and Mexico," the report stated. Zoom in: Despite ongoing demand, real estate activity remained muted across the region, according to the report. Developers paused or scaled back projects due to rising construction costs and elevated financing rates. Some landlords reported a rise in missed rent payments as tenants struggled with high living costs. That will likely pose a challenge to Washington and Seattle as they look to boost housing production and office building use. Context: The Fed publishes the Beige Book eight times a year to give a snapshot of current economic conditions across its 12 districts, providing indicators for what to expect in coming months. The report is compiled by gathering information from businesses, community organizations and other sources across each district. What they're saying:"Most contacts reported that they plan to pass increased input costs on to customers, but some expected to absorb cost increases to preserve market share," the Beige Book states. What to watch: Demand for community support services like housing and food assistance remained high even as service providers struggled with "deteriorating conditions," the report warns. Funding from public and private sector sources dropped due to federal policy changes and companies' reduction in discretionary and philanthropic spending. Some nonprofits had to cut programs and lay off workers as a result. That means local governments might have to shoulder a larger financial burden.
Yahoo
24-02-2025
- Business
- Yahoo
Fed expected to respond strongly to inflation, job market conditions, research shows
SAN FRANCISCO (Reuters) - Investors and economists expect the U.S. central bank to respond "strongly and systematically" to changes in inflation and the labor market, according to research published on Monday by the San Francisco Fed that underscores the current sensitivity of financial markets to U.S. economic data. The Fed's perceived responsiveness to economic data picked up notably in 2022, driven first by inflation data and, last year, by labor market data, based on the analysis of perceptions embedded in professional forecasts and in bond market moves published in the regional Fed bank's latest Economic Letter. The findings are in line with the Fed's actual response to inflation, which rose in 2021 but did not trigger any interest rate hikes until 2022. They also track with the Fed's reaction to labor market data, which weakened notably in the middle of last year and helped drive the Fed's decision to cut the policy rate by a full percentage point starting last September. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The Fed's target policy rate is currently in the 4.25%-4.50% range. Recent weaker economic readings, including a survey released on Friday showing business activity fell to a 17-month low this month, have helped firm up market bets on two quarter-percentage-point reductions to the policy rate this year. Worries about stalling economic growth appear to be outweighing fears of a resurgence in inflation, also evident in recent surveys, at least as far as market bets on how the Fed will react with monetary policy. Interest rate futures contracts are currently priced for the first Fed rate cut this year to come in June, with the second to happen as early as October.
Yahoo
24-02-2025
- Business
- Yahoo
Fed expected to respond strongly to inflation, job market conditions, research shows
SAN FRANCISCO (Reuters) - Investors and economists expect the U.S. central bank to respond "strongly and systematically" to changes in inflation and the labor market, according to research published on Monday by the San Francisco Fed that underscores the current sensitivity of financial markets to U.S. economic data. The Fed's perceived responsiveness to economic data picked up notably in 2022, driven first by inflation data and, last year, by labor market data, based on the analysis of perceptions embedded in professional forecasts and in bond market moves published in the regional Fed bank's latest Economic Letter. The findings are in line with the Fed's actual response to inflation, which rose in 2021 but did not trigger any interest rate hikes until 2022. They also track with the Fed's reaction to labor market data, which weakened notably in the middle of last year and helped drive the Fed's decision to cut the policy rate by a full percentage point starting last September. The Fed's target policy rate is currently in the 4.25%-4.50% range. Recent weaker economic readings, including a survey released on Friday showing business activity fell to a 17-month low this month, have helped firm up market bets on two quarter-percentage-point reductions to the policy rate this year. Worries about stalling economic growth appear to be outweighing fears of a resurgence in inflation, also evident in recent surveys, at least as far as market bets on how the Fed will react with monetary policy. Interest rate futures contracts are currently priced for the first Fed rate cut this year to come in June, with the second to happen as early as October.
