Latest news with #St.LouisFed
See - Sada Elbalad
2 days ago
- Business
- See - Sada Elbalad
Gold Falls Locally and Globally Amid White House Tariff Uncertainty and U.S. Inflation Data Watch
Waleed Farouk Gold prices in both local and global markets saw a notable decline on Monday, as investors awaited a potential move from the White House regarding possible tariffs on gold bullion. Market focus also shifted toward U.S. inflation data due later this week, which could determine the future path of the Federal Reserve's monetary policy. In local markets, the price of 21-karat gold fell by around EGP 40 compared to Saturday's close, settling at EGP 4,580 per gram. Globally, spot gold lost about $42 to trade at $3,355 per ounce. The price of 24-karat gold stood at EGP 5,234 per gram, 18-karat gold at EGP 3,926, and 14-karat gold at EGP 3,054, while the gold pound coin was valued at EGP 36,640. Last week, gold prices rose 0.4% locally, with the 21-karat price up EGP 20 from EGP 4,600 to EGP 4,620, while on the global market the metal gained 1%, moving from $3,363 to $3,397 per ounce. The latest pullback comes amid selling pressure, as attention turns to the U.S. July Consumer Price Index (CPI), expected to show a 0.3% monthly increase in core inflation, pushing the annual rate to 3%—above the Fed's 2% target. Markets are also awaiting an executive order promised by the White House to clarify its stance on potential bullion tariffs. Analysts say the CPI report will reveal whether the inflationary pressures from tariffs are temporary or persistent, especially after June data showed a rise in prices for many imported goods. Economists expect headline inflation to rise 2.8% year-on-year and core CPI—excluding volatile food and energy prices—to increase 3.0%. Any upside inflation surprises could prompt investors to reassess bets on a September rate cut, despite last week's weaker-than-expected U.S. jobs report, which boosted market expectations to nearly 90% for a 25-basis-point rate reduction, with at least one more cut projected before year-end. Comments from Federal Reserve Governor Michelle Bowman and St. Louis Fed President Alberto Musalem—indicating openness to policy easing—also weighed on the dollar and supported precious metals. Separately, Reuters reported that U.S. Treasury Secretary Scott Bessent is seeking a successor to Fed Chair Jerome Powell, with speculation centering on veteran advisers and former regional Fed presidents, as political pressure from President Donald Trump to cut rates continues. Attention is also on the upcoming summit between Trump and Russian President Vladimir Putin in Alaska on Friday, where discussions will focus on ending the war in Ukraine. The deadline for new U.S. tariffs on China, initially set for Tuesday, is widely expected to be extended. According to the CME FedWatch tool, markets are pricing in an 88% chance of a Fed funds rate cut to the 4.00%-4.25% range. While gold typically holds its appeal in high-inflation environments, a prolonged restrictive Fed policy stance could weigh on its performance in the medium term. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 Videos & Features Story behind Trending Jessica Radcliffe Death Video News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani
Hindustan Times
04-08-2025
- Business
- Hindustan Times
Millennials Are Richer Now. So Why Can't They Stop Worrying?
Millennials are entering midlife wealthier than they or anyone else expected. Many of them fear it won't last. Mike Tonkinson finished law school near the end of the 2007-09 recession and spent several anxious months without a paycheck after his new job's start date was pushed back. The unemployment and foreclosures he saw in those years have haunted him since. 'You only have to watch 'The Big Short' once and go, 'Oh, my God,'' said Tonkinson, referring to the movie about the era's financial crisis. 'It just makes you jumpy.' The 45-year-old lawyer in Boulder, Colo., today is a homeowner with ample retirement savings but worries his wealth could suddenly disappear. He keeps an emergency fund that could cover his expenses for years. After persevering through recessions in the late 2000s and during the Covid-19 pandemic, millennials now have net worths that are higher than those of previous generations at similar ages, adjusting for inflation. Many think it is time to retire the narrative that their generation got a raw deal, but they remain apprehensive about their futures. In 2016, the median net worth of older millennials, those born in the 1980s, was more than one-third lower than expected based on past generations' wealth trajectories, according to the Federal Reserve Bank of St. Louis. By 2022, when that cohort was in their early 30s to early 40s, their median net worth was more than one-third higher than expected. Rising home values and stock prices helped boost millennials' wealth, with both hitting record highs in recent years. But the generation saw both nosedive early in their adult lives. 'I would say we're in the fifth inning. They fell behind and they've caught up,' said William Gale, an economist at the Brookings Institution. 'But the game is not over.' Andrew Miller III wanted a job in finance when he graduated from college in 2006, but ended up selling photocopiers door-to-door. Two graduate degrees and almost 20 years later, he is an executive at a shipping company and can afford to send his five children to private school. Miller, a 41-year-old in Burleson, Texas, thinks the complaint that millennials are financially doomed is outdated. Andrew Miller III, with microphone, took a detour before landing in corporate finance. He said early difficulties 'helped me in my career because they made me have to grind, to work harder and smarter to catch up.' In early 2025, the average net worth of millennials and older members of Gen Z was 31% higher than baby boomers' and 20% higher than Gen Xers' at similar ages, according to Ana Hernández Kent, a researcher formerly at the St. Louis Fed. Not everyone is enjoying such success. Among the millennials still struggling to build wealth are those who have large student-debt payments and those who can't afford to buy a house. The gap between the 20th and 80th percentiles of net worth for millennials was almost $350,000 in 2022, larger than the roughly $285,000 inflation-adjusted gap among boomers in 1989, according to the St. Louis Fed. Age is another dividing line among millennials, with even just a few years making a difference in fortunes. Stevan Molinar has an older sister who bought a house in the 2010s, but by the time he was prepared to do the same in the 2020s, mortgage rates and home prices were shooting up. Molinar, 35, said he and his peers have adjusted their vision of the good life accordingly. 'It's no longer a home, spouse, two cars and three kids in the suburbs,' said Molinar, a management consultant in Bellevue, Wash. He said he measures his success by his ability to travel often and to rent a nice apartment. Nearly seven in 10 millennials say that financial success is much harder for them to achieve than it is for other generations, according to a 2024 survey from Empower, a financial-services company. Millennials' frustration with the cost of houses, healthcare and college degrees is understandable, said Jean Twenge, a psychology professor at San Diego State University. She also thinks some of their midlife angst has to do with their upbringing. 'The millennial childhood and adolescence was so optimistic and so positive,' said Twenge, author of 'Generations,' a book about generational differences. 'Their expectations were so high, they might have been impossible to fulfill.' For Avantika Argolo, a 36-year-old product manager in Dallas, millennials' ability to weather setback after setback is reason for optimism. 'We look at boomers today as having all the expensive houses and all this wealth saved up,' Argolo said. 'I think that's going to be us in 20 years, 30 years.' Lisa Peteet worries about how AI might affect her industry. Still, many millennials say that living through historic recessions primed them to be extra vigilant. Lisa Peteet, 44, launched her own design firm in Asheville, N.C., during the 2007-09 downturn as her then-employer struggled. She still runs the firm, but fears what artificial intelligence might do to her livelihood. 'When you start in 2008, you have a mindset of scarcity a little bit,' she said. Write to Joe Pinsker at Millennials Are Richer Now. So Why Can't They Stop Worrying? Millennials Are Richer Now. So Why Can't They Stop Worrying? Millennials Are Richer Now. So Why Can't They Stop Worrying?
Mint
03-08-2025
- Business
- Mint
Millennials are richer now. So why can't they stop worrying?
Mike Tonkinson owns a home and has ample retirement savings—but still worries about his finances. Millennials are entering midlife wealthier than they or anyone else expected. Many of them fear it won't last. Mike Tonkinson finished law school near the end of the 2007-09 recession and spent several anxious months without a paycheck after his new job's start date was pushed back. The unemployment and foreclosures he saw in those years have haunted him since. 'You only have to watch 'The Big Short' once and go, 'Oh, my God,'" said Tonkinson, referring to the movie about the era's financial crisis. 'It just makes you jumpy." The 45-year-old lawyer in Boulder, Colo., today is a homeowner with ample retirement savings but worries his wealth could suddenly disappear. He keeps an emergency fund that could cover his expenses for years. After persevering through recessions in the late 2000s and during the Covid-19 pandemic, millennials now have net worths that are higher than those of previous generations at similar ages, adjusting for inflation. Many think it is time to retire the narrative that their generation got a raw deal, but they remain apprehensive about their futures. In 2016, the median net worth of older millennials, those born in the 1980s, was more than one-third lower than expected based on past generations' wealth trajectories, according to the Federal Reserve Bank of St. Louis. By 2022, when that cohort was in their early 30s to early 40s, their median net worth was more than one-third higher than expected. Rising home values and stock prices helped boost millennials' wealth, with both hitting record highs in recent years. But the generation saw both nosedive early in their adult lives. 'I would say we're in the fifth inning. They fell behind and they've caught up," said William Gale, an economist at the Brookings Institution. 'But the game is not over." Andrew Miller III wanted a job in finance when he graduated from college in 2006, but ended up selling photocopiers door-to-door. Two graduate degrees and almost 20 years later, he is an executive at a shipping company and can afford to send his five children to private school. Miller, a 41-year-old in Burleson, Texas, thinks the complaint that millennials are financially doomed is outdated. Andrew Miller III, with microphone, took a detour before landing in corporate finance. He said early difficulties 'helped me in my career because they made me have to grind, to work harder and smarter to catch up." In early 2025, the average net worth of millennials and older members of Gen Z was 31% higher than baby boomers' and 20% higher than Gen Xers' at similar ages, according to Ana Hernández Kent, a researcher formerly at the St. Louis Fed. Not everyone is enjoying such success. Among the millennials still struggling to build wealth are those who have large student-debt payments and those who can't afford to buy a house. The gap between the 20th and 80th percentiles of net worth for millennials was almost $350,000 in 2022, larger than the roughly $285,000 inflation-adjusted gap among boomers in 1989, according to the St. Louis Fed. Age is another dividing line among millennials, with even just a few years making a difference in fortunes. Stevan Molinar has an older sister who bought a house in the 2010s, but by the time he was prepared to do the same in the 2020s, mortgage rates and home prices were shooting up. Molinar, 35, said he and his peers have adjusted their vision of the good life accordingly. 'It's no longer a home, spouse, two cars and three kids in the suburbs," said Molinar, a management consultant in Bellevue, Wash. He said he measures his success by his ability to travel often and to rent a nice apartment. Nearly seven in 10 millennials say that financial success is much harder for them to achieve than it is for other generations, according to a 2024 survey from Empower, a financial-services company. Millennials' frustration with the cost of houses, healthcare and college degrees is understandable, said Jean Twenge, a psychology professor at San Diego State University. She also thinks some of their midlife angst has to do with their upbringing. 'The millennial childhood and adolescence was so optimistic and so positive," said Twenge, author of 'Generations," a book about generational differences. 'Their expectations were so high, they might have been impossible to fulfill." For Avantika Argolo, a 36-year-old product manager in Dallas, millennials' ability to weather setback after setback is reason for optimism. 'We look at boomers today as having all the expensive houses and all this wealth saved up," Argolo said. 'I think that's going to be us in 20 years, 30 years." Lisa Peteet worries about how AI might affect her industry. Still, many millennials say that living through historic recessions primed them to be extra vigilant. Lisa Peteet, 44, launched her own design firm in Asheville, N.C., during the 2007-09 downturn as her then-employer struggled. She still runs the firm, but fears what artificial intelligence might do to her livelihood. 'When you start in 2008, you have a mindset of scarcity a little bit," she said. Write to Joe Pinsker at
CNBC
31-07-2025
- Business
- CNBC
Former St. Louis Fed Pres. Bullard: The policy rate is 'a little bit high' for the situation
Former St. Louis Fed President James Bullard joins 'Squawk Box' to discuss the state of the economy, Q2 GDP reading, the Fed's inflation fight, the central bank's decision to leave rates unchanged, rate path outlook, and more.
Business Insider
17-07-2025
- Business
- Business Insider
Businesses warn the Fed that prices will likely start rising more rapidly by late summer
Businesses surveyed by the Federal Reserve said in the latest publication of its Beige Book economic report that tariffs have increased their costs either modestly or "pronouncedly." "Contacts in a wide range of industries expected cost pressures to remain elevated in the coming months, increasing the likelihood that consumer prices will start to rise more rapidly by late summer," the Fed wrote. The July report mentioned tariffs 75 times, which is fewer than the 107 and 122 times the word appears in the prior two reports, but well above the 23 and 49 mentions earlier in the year before President Donald Trump kicked off the trade war. While much of the earlier discussion focused on uncertainty around policy and rates, the talk now is of price hikes as tariffs become more entrenched. In particular, manufacturers reported being surcharged by their suppliers, especially for raw materials used in manufacturing and construction. Several consumer packaged goods companies told the St. Louis Fed that their cost increases would begin showing up on grocery shelves in the next 90 days, and a manufacturing company in Memphis said it had raised prices "significantly" to offset the tariff cost on steel and aluminum. Other businesses in the St. Louis district said they were managing costs in other ways, from a packaging company absorbing at least 10% in surcharges to stay competitive with larger manufacturers to a wellness center that started offering new add-on services in order to manage higher costs elsewhere. And while many businesses said they passed along costs to consumers through price hikes, others said they held off due to price-sensitive consumers, which tightened their profit margins. These new costs haven't yet appeared dramatically in the official data: retail sales continued a strong run last month, and prices have generally held steady. The latest consumer price index inched up by a modest 0.3% — far less than some economists were initially worried about. However, prices may not remain stable for much longer as tariffs (and concerns about tariffs) reshape pricing decisions. "It seems that prices have gone up out of fear that prices will go up," a construction materials supplier told the St. Louis Fed. The Trump administration recently sent tariff letters to nearly two dozen trading partners, threatening duties as high as 50% starting from August 1. None of the four existing trade agreements with the UK, China, Vietnam, and Indonesia has yielded tariffs below 10%, suggesting that the baseline tariff imposed on April 2 may be here to stay.
