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Why now is a good time to rethink monetary policy

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Since the beginning of the pandemic, concerns have been raised about the Federal Reserve’s approach to handling economic challenges.

While the Fed’s perceived political involvement has garnered attention, the more pressing issue at hand is the way it tackles inflation and interest rates using what some describe as a sledgehammer when a scalpel might be more appropriate.

Instead of implementing infrequent and substantial moves of 25, 50, or even 75 basis points, which can disrupt financial markets and investment strategies, the argument put forth is that the Fed should opt for smaller, more frequent adjustments of five or ten basis points.

The goal is to create a smoother economic landscape, as opposed to the sharp and unpredictable fluctuations that are currently experienced.

FILE PHOTO: A Wall St. sign is seen outside the New York Stock Exchange (NYSE) in the financial district in New York City, U.S.

Rate curve

The proposed ideal scenario envisions a gradual and controlled interest rate curve, consistently hovering between 3% and 4%, within a relatively narrow range.

This approach would entail a longer-term cycle, spanning 10 or 20 years, rather than the shorter two- or three-year cycles witnessed today.

By implementing minor basis-point adjustments over a few weeks, financial markets, lending practices, and the stock market would adapt in a more measured manner.

These adjustments would be small, fostering a more rational and predictable economic environment conducive to better planning.

The debate over the Fed’s approach to monetary policy is ongoing, and while the central bank continues to grapple with economic challenges, alternative strategies like the one proposed here could reshape the way it addresses these issues in the future.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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RBA rate shock: ASX200, Gold and Crypto market

RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.

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RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.


The RBA’s latest interest rate decision has sent ripples through the ASX200 and AUD, leaving investors weighing what comes next. We break down how these changes could affect global equities ahead of this week’s crucial non-farm payroll and consumer price index releases.

Zoran Kresovic from Blueberry Markets shares his analysis on the rebound in gold and silver after recent market turbulence, and what factors could drive further gains or sell-offs in the commodities market.

We also dive into the current state of cryptocurrencies, exploring how investors can navigate volatility and what to watch as economic data continues to shape market sentiment.

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#RBA #ASX200 #GoldMarket #SilverRebound #CryptoUpdate #InvestingTips #MarketVolatility #EconomicOutlook


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Dow hits record while tech stocks drive market gains

S&P 500 rose 0.7% with Nvidia and Broadcom driving gains; investors await delayed January jobs and inflation reports.

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S&P 500 rose 0.7% with Nvidia and Broadcom driving gains; investors await delayed January jobs and inflation reports.

The S&P 500 rose 0.7% on Monday, powered by gains in technology stocks, while the Dow Jones Industrial Average hit new heights. Investors are eagerly awaiting crucial economic reports this week.

Nvidia and Broadcom were among the standout performers, climbing 3% and 4% respectively, continuing the momentum from the previous session. The market rebound comes after significant losses earlier last week, with the Dow exceeding 50,000 for the first time ever on Friday.

Investors now turn their attention to the delayed January jobs report from the Bureau of Labor Statistics, due Wednesday, and the consumer price index for January, expected Friday with a 2.5% annual rise.

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Tech stocks slide as investors rotate into small-cap and value plays

Nasdaq drops 1.84% amid turbulent week; investors pivot to cyclical and value sectors from high-growth tech.

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Nasdaq drops 1.84% amid turbulent week; investors pivot to cyclical and value sectors from high-growth tech.

U.S. equity markets wrapped up a turbulent week with mixed results. The Nasdaq Composite fell 1.84%, marking its worst week for large-cap technology stocks since November, while the S&P 500 remained largely unchanged. Investors are weighing concerns about artificial intelligence and potential overinvestment in high-growth areas.

Meanwhile, smaller-cap and value-oriented stocks continued to add to their year-to-date gains. Market participants rotated into cyclical sectors that had lagged, reflecting a shift in investor sentiment and appetite for risk outside the traditional tech heavyweights.

Analysts say this rotation highlights the broader market’s evolving dynamics, as growth concerns collide with opportunities in underappreciated areas. Stay tuned for further developments as the market digests these trends.

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