Latest news with #BethHammack
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2 days ago
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Latest US Tariff Threats Boost the Dollar
The dollar index (DXY00) on Monday rose by +0.24% and posted a new 2.5-week high. The dollar moved higher as President Trump's threats to impose 30% tariffs on goods from the European Union (EU) and Mexico, beginning August 1, risk stoking inflation pressures that could keep the Fed from cutting interest rates, a supportive factor for the dollar. Also, hawkish comments from Cleveland Fed President Beth Hammack supported the dollar Monday when she said she wants to see inflation fall further before she would support cutting interest rates. Over the weekend, President Trump saidthe US will impose 30% tariffs on goods from the EU and Mexico, beginning August 1. Dollar Supported by Latest US Tariff Threats Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Cleveland Fed President Beth Hammack said she wants to see inflation fall further before she'd support cutting interest rates. She said, "We're not there yet on the inflation side of the Fed's mandate, and I think it's important that we wait and see how all the new policies that have been put forward are going to impact inflation." The markets are discounting a 5% chance of a -25 bp rate cut at the July 29-30 FOMC meeting. EUR/USD (^EURUSD) Monday fell by -0.21% and posted a new 2.5-week low. President Trump's threat to impose a 30% tariff on US imports from the EU may slow the Eurozone economy and is bearish for the euro. Losses in the euro were limited after the 10-year German bund yield today rose to a 3.5-month high, which strengthens the euro's interest rate differentials. Swaps are pricing in a 2% chance of a -25 bp rate cut by the ECB at the July 24 policy meeting. USD/JPY (^USDJPY) on Monday rose by +0.22%. The yen gave up an early advance Monday and tumbled to a 3-week low against the dollar after T-note yields rose. The yen is also being undercut by worries about the upper house election in Japan on July 20. The promises by Japan's ruling Liberal Democratic Party of cash handouts to voters and promises of lower taxes by the opposition have sparked concerns of fiscal deterioration, which are bearish for the yen. The yen initially moved higher on Monday due to strength in Japanese government bond yields. The 10-year JGB bond yield rose to a 3.5-month high on Monday of 1.587%, which strengthened the yen's interest rate differentials. The yen also strengthened on a Bloomberg report that the BOJ will raise its inflation forecasts at this month's policy meeting, a hawkish factor for BOJ policy. Monday's Japanese economic news was mixed for the yen after the May tertiary index rose more than expected, but May core machine orders fell more than expected. The Japan May tertiary index rose +0.6% m/m, stronger than expectations of +0.1% m/m. Japan May core machine orders fell -0.6% m/m, a smaller decline than expectations of -1.5% m/m. Japan's May industrial production was revised downward to -0.1% m/m from the previously reported +0.5% m/m. Bloomberg reported that Bank of Japan (BOJ) officials are likely to consider raising at least one of their inflation forecasts at the July 30-31 policy meeting after rice and food-related prices rose more than expected. August gold (GCQ25) Monday closed down -4.90 (-0.15%), and September silver (SIU25) closed down -0.213 (-0.55%). Precious metals on Monday gave up an early advance and turned lower. Gold prices fell from a 3-week high. Sep silver slid from a contract high, and the July 2025 silver contract fell from a 14-year high on the nearest-futures charts. The main bearish factor for precious metals was Monday's rally in the dollar index to a 2.5-week high. Also, higher global bond yields on Monday were bearish for precious metals. In addition, Bloomberg's report on Monday said that the BOJ is likely to consider raising at least one of its inflation forecasts at the July 30-31 policy meeting, which was hawkish for BOJ policy and negative for precious metals. Precious metals prices on Monday initially moved higher as ramped-up tariff threats by President Trump increased safe-haven demand for precious metals after he said over the weekend that he would impose 30% tariffs on goods from the European Union and Mexico, beginning August 1. Also, rising US inflation expectations are supportive of gold demand as an inflation hedge after the 10-year breakeven inflation rate rose to a 3.5-month high on Monday of 2.405%. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
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Dollar Supported by Latest US Tariff Threats
The dollar index (DXY00) today is up by +0.07%, and posted a new 2.5-week high. The dollar moved higher due to a slump in stocks, which boosted some liquidity demand for the dollar. Also, President Trump's threats to impose 30% tariffs on goods from the European Union (EU) and Mexico, beginning August 1, risk stoking inflation pressures that could keep the Fed from cutting interest rates, a supportive factor for the dollar. In addition, hawkish comments from Cleveland Fed President Beth Hammack supported the dollar when she said she wants to see inflation fall further before she would support cutting interest rates. Over the weekend, President Trump saidthe US will impose 30% tariffs on goods from the EU and Mexico, beginning August 1. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Cleveland Fed President Beth Hammack said she wants to see inflation fall further before she'd support cutting interest rates. She said, "We're not there yet on the inflation side of the Fed's mandate and I think it's important that we wait and see how all the new policies that have been put forward are going to impact inflation." The markets are discounting a 7% chance of a -25 bp rate cut at the July 29-30 FOMC meeting. EUR/USD (^EURUSD) today posted a new 2.5-week low and is slightly lower. President Trump's threat to impose a 30% tariff on US imports from the EU may slow the Eurozone economy and is bearish for the euro. Losses in the euro are limited after the 10-year German bund yield today rose to a 3.5-month high, which strengthens the euro's interest rate differentials. Swaps are pricing in a 2% chance of a -25 bp rate cut by the ECB at the July 24 policy meeting. USD/JPY (^USDJPY) today is down by -0.04%. The yen recovered from a 3-week low against the dollar and is slightly higher today on strength in Japanese government bond yields. The 10-year JGB bond yield rose to a 3.5-month high today of 1.587%, which strengthened the yen's interest rate differentials. The yen also strengthened on a Bloomberg report that the BOJ will raise its inflation forecasts at this month's policy meeting, a hawkish factor for BOJ policy. Today's Japanese economic news was mixed for the yen after the May tertiary index rose more than expected but May core machine orders fell more than expected. The yen has been undercut by worries about the upper house election in Japan on July 20. The promises by Japan's ruling Liberal Democratic Party of cash handouts to voters and promises of lower taxes by the opposition have sparked concerns of fiscal deterioration, which are bearish for the yen. The Japan May tertiary index rose +0.6% m/m, stronger than expectations of +0.1% m/m. Japan May core machine orders fell -0.6% m/m, a smaller decline than expectations of -1.5% m/m. Japan May industrial production was revised downward to -0.1% m/m from the previously reported +0.5% m/m. Bloomberg reported that Bank of Japan (BOJ) officials are likely to consider raising at least one of their inflation forecasts at the July 30-31 policy meeting after rice and food-related prices rose more than expected. August gold (GCQ25) today is down -1.90 (-0.06%), and September silver (SIU25) is down -0.020 (-0.05%). Precious metals today gave up early gains and turned slightly lower. Gold prices fell from a 3-week high. Sep silver slid from a contract high, and the July 2025 silver contract fell from a 14-year high on the nearest-futures charts. The main bearish factor is today's climb in the dollar index to a 2.5-week high. Also, higher global bond yields today are bearish for precious metals. In addition, Bloomberg's report today that the BOJ is likely to consider raising at least one of its inflation forecasts at the July 30-31 policy meeting was hawkish for BOJ policy and negative for precious metals. Precious metals prices today initially moved higher as ramped-up tariff threats by President Trump increased safe-haven demand for precious metals after he said over the weekend that he will impose 30% tariffs on goods from the European Union and Mexico, beginning August 1. Also, today's stock weakness also boosted safe-haven demand for precious metals. Rising US inflation expectations are also supportive of gold demand as an inflation hedge after the 10-year breakeven inflation rate rose to a 3.5-month high today of 2.398%. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Reuters
2 days ago
- Business
- Reuters
Fed's Hammack sees no urgent reason to lower rates
July 14 (Reuters) - Federal Reserve Bank of Cleveland President Beth Hammack said on Monday she sees no imminent need to lower interest rates right now given that inflation is still too high, amid ongoing uncertainty about how trade tariffs will affect price pressures. 'We're pretty close to where the neutral rate is and so I see an economy that's resilient, I see one that's working really well, and I don't see a need to really reduce (interest rates) unless we see material weakening on the labor side,' Hammack said in an interview on Fox Business. For Hammack, inflation levels that stand above the 2% target remain the main obstacle to cutting the cost of short-term credit. When it comes to the Federal Open Market Committee meeting scheduled for July 29-30, Hammack told the television channel that "I walk into every meeting with an open mind, waiting to see where the data is going to take us, where the conversation takes us." "But from where I sit and what I see, what I see is that we're hitting on our employment side of the mandate, we're not there yet on the inflation side of the mandate," Hammack said. With inflation still too high, "I think it's important for us to maintain a restrictive posture of monetary policy to make sure that we're getting inflation down to our target of 2%" for inflation. Most Fed officials who have spoken over recent weeks appear on board with the notion that the current federal funds target rate range, now between 4.25% and 4.5%, will remain in place at the end of the month. At the Fed's June meeting officials penciled in two cuts later this year and investors generally expect that easing to start at the September meeting. There is however a minority of Fed officials who are open to cutting rates in June, on the basis of the idea that the Trump administration's aggressive and ever-shifting import tax hikes will have a one-time impact on inflation and can be ignored as part of setting monetary policy. Speaking last week, Fed governor Christopher Waller said "we're just too tight and we could consider cutting the policy rate in July." Waller added his take on rates is "not political." The Fed has been facing substantial pressure from President Donald Trump to cut interest rates but officials have so far resisted this pressure and focused on the economic data. In her interview, Hammack cautioned that it remains unclear how the tariffs will play out. Given the still unfolding influence of the tariffs, "I think wait and see is the best place for us to be, because I think we don't know exactly what those impacts are going to be."
Yahoo
2 days ago
- Business
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Fed's Hammack sees no urgent reason to lower rates
By Michael S. Derby (Reuters) -Federal Reserve Bank of Cleveland President Beth Hammack said on Monday she sees no imminent need to lower interest rates right now given that inflation is still too high, amid ongoing uncertainty about how trade tariffs will affect price pressures. 'We're pretty close to where the neutral rate is and so I see an economy that's resilient, I see one that's working really well, and I don't see a need to really reduce (interest rates) unless we see material weakening on the labor side,' Hammack said in an interview on Fox Business. For Hammack, inflation levels that stand above the 2% target remain the main obstacle to cutting the cost of short-term credit. When it comes to the Federal Open Market Committee meeting scheduled for July 29-30, Hammack told the television channel that "I walk into every meeting with an open mind, waiting to see where the data is going to take us, where the conversation takes us." "But from where I sit and what I see, what I see is that we're hitting on our employment side of the mandate, we're not there yet on the inflation side of the mandate," Hammack said. With inflation still too high, "I think it's important for us to maintain a restrictive posture of monetary policy to make sure that we're getting inflation down to our target of 2%" for inflation. Most Fed officials who have spoken over recent weeks appear on board with the notion that the current federal funds target rate range, now between 4.25% and 4.5%, will remain in place at the end of the month. At the Fed's June meeting officials penciled in two cuts later this year and investors generally expect that easing to start at the September meeting. There is however a minority of Fed officials who are open to cutting rates in June, on the basis of the idea that the Trump administration's aggressive and ever-shifting import tax hikes will have a one-time impact on inflation and can be ignored as part of setting monetary policy. Speaking last week, Fed governor Christopher Waller said "we're just too tight and we could consider cutting the policy rate in July." Waller added his take on rates is "not political." The Fed has been facing substantial pressure from President Donald Trump to cut interest rates but officials have so far resisted this pressure and focused on the economic data. In her interview, Hammack cautioned that it remains unclear how the tariffs will play out. Given the still unfolding influence of the tariffs, "I think wait and see is the best place for us to be, because I think we don't know exactly what those impacts are going to be." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
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Latest Tariff Threats Weigh on Stocks
The S&P 500 Index ($SPX) (SPY) today is down -0.21%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.22%. September E-mini S&P futures (ESU25) are down -0.21%, and September E-mini Nasdaq futures (NQU25) are down -0.39%. Stock indexes today are under pressure after President Trump ramped up tariff threats against US trading partners. Over the weekend, President Trump said the US will impose 30% tariffs on goods from the European Union and Mexico, beginning August 1. The markets are still reeling from last Thursday when President Trump said a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Shopify Stock is a Bargain - How to Make a 3.2% One-Month Yield with SHOP Tariffs, Inflation and Other Key Things to Watch this Week Stocks Set to Open Lower as Trump Ratchets Up Tariff Threats, U.S. Inflation Data and Big Bank Earnings Awaited Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Stocks have been undercut as President Trump vowed to push forward with his aggressive tariff regime, stressing he would not offer additional extensions on country-specific tariffs set to take effect on August 1. Last week, Mr. Trump imposed a 50% tariff on copper imports that will include semi-finished goods and said that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year. In addition, despite stating that the US was close to a trade deal with India, Mr. Trump said he would still impose a 10% tariff on India's goods for their participation in BRICS, a group of developing nations he claimed were "set up to hurt" the US. Hawkish comments today from Cleveland Fed President Beth Hammack weighed on stocks and bonds when she said she wants to see inflation lowered further before she'd support cutting interest rates. She said, "We're not there yet on the inflation side of the Fed's mandate, and I think it's important that we wait and see how all the new policies that have been put forward are going to impact inflation." Trade news from China was better than expected, a positive factor for global economic growth. China June exports rose +5.8% y/y, stronger than expectations of +5.0% y/y. Also, June imports rose +1.1% y/y, stronger than expectations of +0.3% y/y. The price of Bitcoin (^BTSUSD) continues to soar and is up by more than +3% today at a new record high as the US House prepares to consider legislation this week that would advance President Trump's crypto-friendly agenda. The US House Committee on Financial Services said this week will be "Crypto Week." The US House Committee on Ways and Means has planned an oversight subcommittee hearing on July 16 entitled, "Making America the Crypto Capital of the World," which may lead to more crypto-friendly regulations. The markets this week will focus on any fresh news on tariffs or trade deals. On Tuesday, the US June CPI is expected to strengthen to +1.9% y/y from +1.7% y/y in May, and the June core CPI is expected to strengthen to +2.9% y/y from +2.8% y/y in May. On Wednesday, June PPI final demand is expected to ease to +2.5% y/y from +2.6% in May, and June core PPI is expected to ease to +2.7% y/y form +3.0% y/y in May. Also, on Wednesday, Jun manufacturing production is expected to fall -0.1% y/y. Finally on Wednesday, the Fed will release its Beige Book. On Thursday, June retail sales are expected to climb by +0.1% m/m and +0.3% ex-autos, and weekly initial unemployment claims are expected to climb by +7,000 to 234,000. Also, on Thursday, the Philadelphia Fed business outlook survey is expected to climb +3.0 points to -1.0 and the July NAHB housing market index is expected to rise +1 to 33. On Friday, June housing starts are expected to climb +3.3% m/m to 1.298 million, and June building permits are expected to slip -0.6% m/m to 1.386 million. Also, the University of Michigan US July consumer sentiment index is expected to climb +0.8 to 61.5. Another hurdle for stocks is the upcoming earnings season, which begins in earnest this week with the release of big bank earnings results. Bloomberg Intelligence data show that the consensus for Q2 earnings of S&P 500 companies is for a rise of +2.8% year-over-year, the smallest increase in two years. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research. Federal funds futures prices are discounting the chances at 5% for a -25 bp rate cut at the July 29-30 FOMC meeting. Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.72%. China's Shanghai Composite closed up +0.27%. Japan's Nikkei Stock 225 closed down -0.28%. Interest Rates September 10-year T-notes (ZNU25) today are down by -2 ticks. The 10-year T-note yield is up by +1.0 bp to 4.419%. T-note prices are under pressure after President Trump said over the weekend that the US will impose 30% tariffs on goods from the European Union and Mexico, beginning August 1, which could boost inflation and prevent the Fed from cutting interest rates. Rising US inflation expectations are also weighing on T-notes as the 10-year breakeven inflation rate today rose to a 3.5-month high of 2.398%. T-note prices are also being undercut by hawkish comments from Cleveland Fed President Beth Hammack, who said she wants to see inflation lowered further before she'd support cutting interest rates. Finally, negative carryover from a slide in 10-year German bunds to a 3.5-month low today is bearish for T-notes. European government bond yields today are mixed. The 10-year German bund yield rose to a 3.5-month high of 2.739% and is up +1.3 bp at 2.738%. The 10-year UK gilt yield is down -0.6 bp to 4.616%. Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the July 24 policy meeting. US Stock Movers The weakness in semiconductor chip stocks is weighing on the broader market. Micron Technology (MU) is down more than -5% to lead losers in the Nasdaq 100. Also, ON Semiconductor (ON) and Lam Research (LRCX) are down more than -2%. In addition, Marvell Technology (MRVL), NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), Advanced Micro Devices (AMD), Intel (INTC), KLA Corp (KLAC), Qualcomm (QCOM), and Texas Instruments (TXN) are down more than -1%. Nvidia (NVDA) is down more than -1% to lead losers in the Dow Jones Industrials. Cryptocurrency-exposed stocks are moving higher with the price of Bitcoin (^BTCUSD) up more than +3% to a new record high. MARA Holdings (MARA) is up more than +10%, Riot Platforms (RIOT) is up more than +6%, MicroStrategy (MSTR) is up more than +4%, and Coinbase Global (COIN) is up more than +2%. Waters (WAT) is down more than -9% to lead losers in the S&P 500 after the company said it will combine a Reverse Morris Trust transaction valued at about $17.5 billion with Becton's Biosciences & Diagnostic Solutions, in which Waters' will assume about $4 billion of incremental debt. Best Buy (BBY) is down more than -2% after Piper Sandler downgraded the stock to neutral from overweight. Crowdstrike Holdings (CRWD) is down more than -1% after Morgan Stanley downgraded the stock to equal weight from overweight. Starbucks (SBUX) is down more than -1% after Melius Research LLC initiated coverage on the stock with a recommendation of sell and a price target of $80. Intapp (INTA) is down more than -1% after Barclays downgraded the stock to underweight from equal weight with a price target of $44. Nebius Group NV (NBIS) is up more than +14% after Goldman Sachs initiated coverage of the stock with a recommendation of buy and a price target of $68. Fastenal (FAST) is up more than +4% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net sales of $2.08 billion, better than the consensus of $2.07 billion. Autodesk (ADSK) is up more than +3% after it said it is allocating its capital to organic investment, targeted and tuck-in acquisitions, and continuing its share repurchase program as its free cash flow grows. Global Payments (GPN) is up by more than +2% after TD Cowen upgraded the stock to buy from hold with a price target of $84. Kenvue (KVUE) is up more than +1% after saying CEO Mongon is leaving the company and that a strategic view of the company's options is underway. Visteon Corp (VC) is up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $142. Earnings Reports (7/14/2025) Equity Bancshares Inc (EQBK), Fastenal Co (FAST), FB Financial Corp (FBK), Immersion Corp (IMMR), Kestra Medical Technologies Ltd (KMTS), Rezolve AI PLC (RZLV), Simulations Plus Inc (SLP). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
