Wall Street Today | Fed's Williams Says Policy Makers Have a Way to Go Before Rates High Enough
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Fed's Williams Says Policy Makers Have a Way to Go Before Rates High Enough
Federal Reserve Bank of New York President John Williams said further interest-rate increases are needed to curb inflation.
"I still think we have a ways to go in terms of where the fed funds target is and where we need to get it to next year in order to get to a sufficiently restrictive stance," Williams said Thursday. "My view is we need to get the federal funds rate above the inflation rate, and sufficiently above the inflation rate to basically bring downward pressure on inflation."
Consumer Spending Jumped in October as Inflation Eased
Consumer spending increased a seasonally adjusted 0.8% in October from the prior month, the Commerce Department said Thursday, the strongest gain since June. Households spent more on essentials such as rent and food, as well as new vehicles.
Inflation remained high in October but cooled a little. The PCE index rose 6% in October compared with the same month a year ago. Stripping out volatile food and energy costs, core inflation was up 5% in October compared with a year ago.
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Manufacturing in US Contracts for First Time Since May 2020
The Institute for Supply Management's gauge of factory activity slid to 49 from 50.2 in the prior month, according to data released Thursday. The measure has fallen in five of the last six months and stands below 50, the threshold separating expansion and contraction, for the first time since the pandemic.
SECTORS
EU Asks Members to Set Russia Oil-Price Cap at $60
The executive body of the European Union has asked its 27 member countries to use the clout of the bloc's insurance and shipping industries to cap the price of Russian oil at $60 a barrel, according to officials and diplomats involved in discussions.
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Apple Renames Mixed-Reality Software 'xrOS' in Sign Headset is Approaching
$Apple(AAPL.US$ plans to introduce the headset as early as next year, along with a dedicated operating system and app store for third-party software, according to people with knowledge of the matter. Internally, the company recently changed the name of the operating system to "xrOS" from "realityOS".
Marvell Stock Sinks as Earnings Fall Short. Customers are Pulling Back
$Marvell Technology(MRVL.US$ shares were sinking 7% in late trading Thursday after the data- center semiconductor firm's earnings and outlook disappointed Wall Street. The company said makers of storage equipment are reducing their stockpiles of chips, hurting its near-term results.
Twitter Dangles Incentives to Try to Lure Advertisers
In one email sent to advertising agencies, a copy of which was seen by the Financial Times, $Twitter (Delisted)(TWTR.US$ said that it was launching its "largest advertiser incentive ever" in December, offering additional impressions if brands spent a certain amount.
Tesla Set to Deliver Semi Truck to PepsiCo, Expanding Beyond Passenger Vehicles
$Tesla(TSLA.US$ is poised to deliver its first all-electric semitrailer truck Thursday, marking the company's long-delayed expansion beyond the passenger vehicle market. Food and beverage maker $PepsiCo(PEP.US$ is expected to take delivery of the Semi, five years after Elon Musk revealed the model.
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Source: Bloomberg, Dow Jones, CNBC, Yahoo Finance
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Justin Zacks : If the Fed raises the upper bound of the fed funds rate by 50 basis points at it December meeting it would stand at 4.5%. Monthly CPI has not been below 4.5% since April 2021. The latest reading was 7.7% for October. The PCE Core Deflator measure of inflation was 5% in October and last below 4.5% in October 2021.
According to Williams, inflation will have to come down significantly in 2023 or the Fed funds rate will need to go higher in order for it to be above the rate of inflation.
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7013476 Justin Zacks : I appreciate the clearing up of who Money navigator is associated with. For a minute there I thought moomoo was giving financial advice
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