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Producer prices post biggest drop in 10 months

WASHINGTON - Producer prices recorded their biggest drop in 10 months in March as the cost of gasoline tumbled, according to a government report on Friday that supported the case for the Federal Reserve to maintain its very accommodative monetary policy.

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Found 1 month ago on channel Reuters

A Yen for Cash: How the Bank of Japan Could Threaten the Global Economy

Japan has been an experiment in economics ever since its crushing defeat at the end of World War II. First, Tokyo employed inventive techniques to rebuild its economy and wealth – the export-led, state-directed system in which bureaucrats “targeted” industries for special support – that broke with economic tradition and became a development model for the rest of the region to follow. Then after the country’s massive stock-and-property-price bubble exploded in the early 1990s, Japan became a much-examined case study in how to handle (or not handle) a financial crisis. After that, economists have puzzled over why Japan has been unable to escape the long stagnation it has suffered ever since. Now Japan is embarking on yet another set of unconventional policies in an attempt to revive itself, which, if successful, could rewrite the rules of fiscal and monetary policy. Whatever the result, economists will likely be studying Japan for decades to come. On Thursday, the new governor of ...

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Found 1 month ago on channel TIME Moneyland

Video: Seniors and low interest rates

One side effect of low interest rates is that seniors aren't making money on their savings. N.Y. Federal Reserve President William Dudley explains the reasoning behind the government's low interest rate policy.

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Found 1 month ago on channel CBS

US Stocks Close Lower, Ending Dow’s 10-Day Rally

U.S. stocks fell Friday, ending the longest winning streak for the Dow Jones industrial average in nearly 17 years. The Dow Jones industrial average dropped 25.03 points, or 0.2 percent, to 14,514.11. The Standard & Poor’s 500 index fell 2.53, or 0.2 percent, to 1,560.70. The Nasdaq composite index dropped 9.86, or 0.3 percent, to 3,249.07. The S&P 500 closed just five points below its all-time closing high of 1,565, reached in October 2007. On Thursday, the Dow closed out a 10-day winning streak, its longest since November 1996. The string of wins pushed the Dow up 484.65 points, or 3.4 percent, to a Thursday close of 14,539.14. The index’s closing price on Feb. 28, just before the rally began, was 14,054.49. Trading Friday was tentative because investors fear that rising inflation will cause the Federal Reserve to retreat from policies aimed at boosting markets. The government said that consumer prices increased in February at the fastest pace in more than three years. The increase ...

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Found more than 1 month ago on channel TIME Moneyland

Fed Survey: U.S. Economy Growing Throughout Country

(WASHINGTON) — Strong auto sales, hiring gains and a continued housing recovery helped the U.S. economy grow throughout the country in January and February, according to a survey released Wednesday by the Federal Reserve. The Fed says 10 of its 12 banking districts reported moderate or modest growth, while Boston and Chicago districts reported slow growth. Consumer spending increased in most regions, although growth slowed in many districts and much of the increases were driven by auto sales. Many districts said that consumers pulled back slightly on spending outside of autos after seeing taxes rise and gas prices increase. Some also expressed concerns about federal spending cuts that started on March 1. Housing markets showed more strength in nearly all parts of the country, while manufacturing showed modest improvements in most regions. And most districts reported some improvement in individual jobs markets. (MORE: Fed Survey: US Economy Picked Up at End of Year) The report, called the ...

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Found more than 1 month ago on channel TIME Moneyland