• Write for Us
  • Advertise
  • About
  • Contact
Thursday, June 1, 2023
British Herald
Advertisement
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion
No Result
View All Result
British Herald
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion
No Result
View All Result
British Herald
Home Finance

Fed’s grades slip in Wall Street’s latest report card

Editorial Bureau by Editorial Bureau
December 1, 2018
0
Fed’s grades slip in Wall Street’s latest report card

FILE PHOTO: The seal for the Board of Governors of the Federal Reserve System is displayed in Washington, U.S., June 14, 2017. REUTERS/Joshua Roberts/File Photo

74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

SAN FRANCISCO (Reuters) – Wall Street last month gave the Federal Reserve its worst grade since Jerome Powell took the helm of the U.S. central bank earlier this year, docking points for a communications misstep early in October that sent U.S. stocks tumbling.

You might also like

Biden ‘optimistic’ of debt ceiling deal as Yellen extends deadline to 5 June

Bank of England’s Jonathan Haskel says policy should lean against sticky inflation

UK government sells £1.26bn of NatWest shares

The report card is included in the New York Fed’s survey of primary dealers that each quarter elicits an assessment of the Fed’s communication with markets and the public over the prior six to eight weeks, using a scale of zero, for “ineffective,” to five, for “effective.”

The Fed received an average score of 3.57 in the latest survey, conducted October 25 to 29 and released on Friday. That’s down from 3.87 in mid-July, the last time the Fed was graded on its communication prowess. The first grade of Powell’s tenure, in April, was 3.82.

The downgrade is at least partly attributable to Powell’s remark on Oct. 3 that interest rates were probably a “long way” from neutral, which seemed to contradict his comment a couple of months earlier rejecting a too-rigid reliance on the neutral rate to shape policy because it could lead to costly mistakes. Stocks plummeted in response.

“Several dealers noted that recent communication from Fed officials has been clear. However, several dealers noted that they perceived recent communication regarding the neutral policy rate and its role in informing monetary policy as being unclear or at times inconsistent with prior Fed communication,” the survey said in the comments section.

Also that month, President Donald Trump called the Fed “crazy.”

This month, Powell and other Fed policymakers have tried to dispel any perception of hawkishness. Markets have rallied this week after Powell signalled he’d be open to taking a go-slow approach on rate hikes.

Still, the Fed under Powell is so far scoring higher than it did when Powell’s predecessor Janet Yellen was in charge.

In October 2015, when the Yellen Fed was navigating the difficult transition from years of super-low interest rates to a cycle of rate hikes, she got the worst grade of her tenure — an average 2.27 out of 5.

Will Powell be able to earn enough extra credit with Wall Street to boost his grade?

Stay tuned until February, the next time the report will be released.

(Reporting by Ann Saphir; Editing by Sonya Hepinstall)

Share30Tweet19
Editorial Bureau

Editorial Bureau

Recommended For You

Biden ‘optimistic’ of debt ceiling deal as Yellen extends deadline to 5 June

May 27, 2023
Biden ‘optimistic’ of debt ceiling deal

The US will be unable to pay its obligations by June 5 unless Congress lifts the debt ceiling , the treasury secretary, Janet Yellen, said on Friday as...

Read more

Bank of England’s Jonathan Haskel says policy should lean against sticky inflation

May 26, 2023
Jonathan Haskel chose not to comment on the market expectations for BoE interest rates.

Monetary Policy Committee (MPC) member Jonathan Haskel stated on Thursday that the Bank of England needs to push back against the risk that high inflation proves unexpectedly sticky,...

Read more

UK government sells £1.26bn of NatWest shares

May 22, 2023
Last month, the government extended its plan to sell off its stake in NatWest by another two years

The UK government has sold £1.26bn of NatWest shares bank to the bank, which it bailed out in a near £46bn deal in 2008.The sale will reduce the...

Read more

Bank of England set for 12th straight interest rate hike, but the outlook remains murky

May 10, 2023
The Bank of England faces a trickier tightrope, though, with the U.K. tipped to be the worst-performing major economy

The Bank of England is expected to raise interest rates for the 12th consecutive meeting on Thursday due to high inflation. However, it seems that the summit may...

Read more

Is the Rupee Set to Replace the Dollar as an International Currency?

March 31, 2023
Indian Rupee

India has been attempting to internationalise the rupee for a long time. Currently, currencies such as the US dollar, Euro, Japanese yen, British pound, and to a lesser...

Read more
No Result
View All Result
May's figures of inflation in Europe will support those policymakers advocating for the ECB to end its tightening cycle

Inflation in Europe drops to lowest level since Russia invaded Ukraine

June 1, 2023
UK government faces deadline to hand Boris Johnson’s messages to coronavirus inquiry

UK government faces deadline to hand Boris Johnson’s messages to coronavirus inquiry

June 1, 2023
Sweden NATO membership

NATO presses Turkey to drop objections to Sweden’s membership as summit looms

June 1, 2023

Tags

australia boris johnson brexit britain British Herald CHINA Coronavirus coronavirus cases coronavirus outbreak COVID-19 COVID-19 Vaccine daily roundup Donald Trump Dubai expo 2020 england European Union facebook France germany Hong Kong india iran israel italy japan joe biden lockdown London News new zealand north korea Rishi Sunak russia south korea spain T20 World Cup taiwan thailand trending Trump turkey UK Ukraine usa worldnews
British Herald

Top News in World: Read Latest News on Sports, Business, Entertainment, Blogs and Opinions from leading columnists.

CATEGORIES

  • Africa
  • Articles
  • Asia
  • Brand Feature
  • Business
  • Climate & Environment
  • Companies
  • Crypto
  • Culture and Lifestyle
  • Daily Roundup
  • Economics
  • ECONOMY
  • Entertainment
  • Europe
  • Fashion
  • Finance
  • Financial Markets
  • Fintech
  • Health
  • IN UK 01
  • IN UK 02
  • Investing
  • Latin America
  • Market
  • Middle East
  • Oceania
  • Opinion
  • Pharma/BioTech
  • Politics
  • Reviews
  • Science & Technology
  • Sport
  • Sustainability
  • Tech
  • Technology
  • Travel
  • UK
  • Uncategorized
  • USA
  • Videos
  • World

BROWSE BY TAGS

australia boris johnson brexit britain British Herald CHINA Coronavirus coronavirus cases coronavirus outbreak COVID-19 COVID-19 Vaccine daily roundup Donald Trump Dubai expo 2020 england European Union facebook France germany Hong Kong india iran israel italy japan joe biden lockdown London News new zealand north korea Rishi Sunak russia south korea spain T20 World Cup taiwan thailand trending Trump turkey UK Ukraine usa worldnews

Herald Media Network Limited (UK). 2023. ALL RIGHTS RESERVED.

No Result
View All Result
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion

Herald Media Network Limited (UK). 2023. ALL RIGHTS RESERVED.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?