|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||25.00 - 25.00|
|52 Week Range||20.65 - 26.00|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||13.07|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- It’s too early to know whether policy makers should cut interest rates and whether such a reduction should be a quarter or half percentage point, Federal Reserve Bank of San Francisco President Mary Daly said Thursday in an interview with Bloomberg Television.The Fed is widely expected by investors to cut interest rates in July, with some looking for a 50 basis-point move.“If the data come in that show significant weakening, that would call for different actions than if the data come in and say that we are just getting headwinds and we’re slowing,” Daly said in an interview with Bloomberg’s Michael McKee. “It is too early, from my perspective, to know whether we should use the tool at all and what magnitude of the tool we should apply.”U.S. central bankers left the benchmark lending rate unchanged at their June 18-19 meeting, while pivoting toward a rate cut. The central bank said in its statement that “uncertainties’’ about the outlook have increased and that it will “closely monitor’’ incoming information.In addition, the Fed has been whittling down the size of its balance sheet since late 2017. Officials said in March they would halt the process at the end of September, and have opted for a strategy where banks will have ample reserves, a contrast to the period before the financial crisis when the central bank operated with a tight reserve market.Distinct ToolDaly said the federal funds rate is a distinct instrument from the balance sheet.“The balance sheet and funds rate issues are still open for discussion,” she said.Continuing to run down the balance sheet “in my judgment doesn’t counteract or contradict policy,” she added. “This has been well-telegraphed, well-announced, so many of the effects of the balance-sheet runoff to ample reserves is already in the markets.”Daly is a non-voting member of the Federal Open Market Committee this year. Fed policy makers are next scheduled to meet July 30-31.Fed Chairman Jerome Powell, in his press conference June 19, explained that the committee was becoming less optimistic that inflation would soon move back to the 2% target. Fed officials revised their forecast lower to just 1.5% this year, and 1.9% for 2020.“We are well aware that inflation weakness that persists even in a healthy economy could precipitate a difficult-to-arrest downward drift in longer-run inflation expectations,” Powell said in his press conference.St. Louis Fed President James Bullard, a voting member who dissented in favor of a quarter-point cut this month, also cited too-low inflation as a reason why he favors a reduction of borrowing costs now.For her part, Daly said she is “not a proponent” of the idea that inflation expectations have drifted below 2% in a sustained way. “I do see indications that it is getting a little untethered,” she said, adding that she supports putting weight on this risk as the Fed considers its policy.(Updates with additional comments starting in third paragraph.)\--With assistance from Rich Miller.To contact the reporters on this story: Craig Torres in Washington at email@example.com;Michael McKee in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Margaret Collins at email@example.com, Scott Lanman, Vince GolleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With interest rates low and their balance sheets still loaded with assets bought to fight the 2008 crisis, do they have the tools to respond? When the next recession comes, will the Federal Reserve have the resources needed to fight it off? With Donald Trump in the presidency, fiscal stimulus seems unlikely, unless it comes in the form of more tax cuts (which aren’t a very effective form of stimulus).
When the owner expresses surprise, the eponymous hero, on the run as usual, tells her that other payment methods leave “spoors in the forest” — meaning, a trail others might follow. Starting in July, the city will become the latest U.S. jurisdiction to require that most retail establishments accept cash payments.
The Federal Reserve Bank of San Francisco picked long-time insider Mary Daly to be its next president, potentially bolstering the central bank’s dovish wing while diversifying the institution’s top ranks. ...
John Williams left the helm of the Federal Reserve Bank of San Francisco to assume the same post at the New York Fed in June, boosting his role to vice chairman of the Federal Open Market Committee and giving him a permanent vote on monetary policy. Williams’ elevated status at the central bank, along with his credentials as a Ph.D. economist whose work on neutral interest rates is widely respected, gives his public appearances gravitas among economists and investors. Following his public remarks at the conference, Williams sat down with reporters to discuss the economy and his outlook on monetary policy.