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The Marriner S. Eccles Federal Reserve Building is located in Washington, DC, United States, on Tuesday, Aug. 18, 2020.
Photographer: Erin Scott / Bloomberg
Photographer: Erin Scott / Bloomberg
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“Clearly we have a long way to go,” said Powell, chairman of the Federal Reserve Board (FRB), of “maximum employment,” one of the two main responsibilities of the FRB. It appears that it will take more than three years for the “broad and complete” labor market to recover, which cannot be judged by the unemployment rate reported in the news. Here are five news items to keep in mind as you start your day.
3 year promise
The U.S. Federal Public Market Commission (FOMC) has left the Federal Fund (FF) interest rate guidance target range at 0-0.25%, at leastIt is suggested that the interest rate will remain close to zero by the end of 2023. He announced that he would maintain an accommodative monetary policy stance until achieving an average inflation rate of 2% during the period and his medium to long-term inflation expectations will be held firm at 2%. FRB President Powell explained that the new policy framework reflected in this statement “clarifies the strong commitment of the financial authorities.”
Vaccine spring
New corona virus vaccine next yearIt will be possible to reach all Americans by April, said Paul Mango, an executive with the US Department of Health. Meanwhile, Anthony from the National Institute of Allergic Infectious Diseases (NIAID)On the same day, Fouch said it was likely to happen from the middle of next year to the end of the year. US President Trump said last night what should be called “mass immunity.”He mistakenly called it “crowd psychology” and said that if crowd psychology were possible, the infection would resolve itself, highlighting the confusion within the administration.
Winter bench
Banks have resumed staff reductions that had been suspended due to the blockade of the new corona measures (city blockade), and the number of staff reductions this year isIt is expected to be the largest in five years. With the resumption of reductions by Citigroup and HSBC Holdings, the total number of reductions announced so far this year has reached 63,785. As a result, the number of people announced last year will exceed 80,000 for the entire year. Last year’s number was the highest since 2015.
Good start
Big Data RiceSnowflake has launched a new share listing (IPO), which has also benefited the Silicon Valley giants. Iconic Capital, a multi-family family office (MFO), has invested $ 245 million (about 26 billion yen) in Snowflake since 2017 to acquire a 12% stake. Snowflake set its initial price at more than double the IPO price, and the value of Iconic’s stake temporarily exceeded $ 8 billion. Iconic’s clients include celebrities like Mark Zuckerberg and Jack Dorsey.
Speed up
US Retail Sales in August increased 0.6% MoM, slowing more than expected. Unemployment Insurance Bonus Benefits and Small Business Support Have Expired, and New Corona Pandemic (Global Epidemic) ContinuesIt is restricting economic activity. Basic sales on a basis, excluding restaurants, car dealers, building supplies stores and service stations, fell 0.1% month-on-month, less than expected.
Other hot news
The European Commission proposes to increase the target for the reduction of heating gases: reduction of 55% by 2030 (2)
21 trillion yen exit from the stock market: JP Morgan estimate of Japanese and US pension funds
OECD raises 20-year global growth forecast to minus 4.5%
