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Omaha Steve

(99,069 posts)
Mon Aug 31, 2015, 07:26 AM Aug 2015

World stocks fall after Fed suggests Sept rate hike possible

Source: AP

By JOE McDONALD

BEIJING (AP) — Global stocks were mostly lower Monday after a U.S. Federal Reserve official suggested a September interest rate hike still was possible and weak Japanese factory activity provided more evidence of a sluggish global economy.

KEEPING SCORE: In early trading, France's CAC-40 fell 1.2 percent to 4,619.91 and Germany's DAX lost 1.3 percent to 10,164.90. Wall Street looked set for losses at the open. Futures for the Dow Jones industrial average and Standard & Poor's 500 were both off 1 percent. On Friday, the Dow lost 0.1 percent and the S&P rose 0.1 percent while the Nasdaq composite gained 0.3 percent.

FED PLANS: The Fed vice chairman, Stanley Fisher said there was a "pretty strong case" for raising rates in September. That ran counter to recent market sentiment that China's economic slowdown and global market volatility might prompt the Fed to wait. Speaking at the U.S. central bank's annual gathering in Jackson Hole, Wyoming, Fisher emphasized he was not saying what action the Fed might take at its September meeting but analysts took his comments to mean he saw the economy moving close to satisfying the Fed's conditions for a hike. It would be the Fed's first reverse from its policy in place since the 2008 crisis of ultra-low rates that have pushed up stock prices.

ANALYST'S TAKE: "The Fed is still at the drawing board with regards to the specifics of the timing of a rate hike this year. But to be sure conviction for a hike this year was not watered down," said Mizuho Bank in a report. "What's more, a rate hike sooner rather than later is preferred on forward-looking inflation."

FULL story at link.

Read more: http://bigstory.ap.org/article/93a5e2a4e5094e05b95fca1fa37b13ef/asian-stocks-fall-after-fed-suggests-sept-rate-hike

7 replies = new reply since forum marked as read
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World stocks fall after Fed suggests Sept rate hike possible (Original Post) Omaha Steve Aug 2015 OP
Fisher is the Ringer Demeter Aug 2015 #1
Fed sabotaging economic recovery again MyNameGoesHere Aug 2015 #2
You have to raise rates eventually Yupster Aug 2015 #3
Perhaps MyNameGoesHere Aug 2015 #5
They should have been raised long ago Yupster Sep 2015 #7
With oil at record lows, there is no inflation Yavin4 Aug 2015 #4
Not a good time for a rate hike. Raymondo22 Aug 2015 #6
 

Demeter

(85,373 posts)
1. Fisher is the Ringer
Mon Aug 31, 2015, 08:32 AM
Aug 2015

The one who funnels orders directly from the TBTF, PTB, bankster-owning 1% Elitists. So even if the majority object, he'll ram it through.

And the American economy will then turn up its toes and die like a dog in the street.

Yupster

(14,308 posts)
3. You have to raise rates eventually
Mon Aug 31, 2015, 11:14 AM
Aug 2015

Next time the economy turns down the government is going to want to lower interest rates to spur borrowing. You can't do that if you leave them low forever.

No one likes to raise rates, but if you're going to lower them, you have to raise them too.

Way overdue.

 

MyNameGoesHere

(7,638 posts)
5. Perhaps
Mon Aug 31, 2015, 11:45 AM
Aug 2015

but timing is everything. I sometimes if they do it just to see what happens to the economy. Personally I don't like living under a system that is swayed by the whims of a few people.

Yupster

(14,308 posts)
7. They should have been raised long ago
Tue Sep 1, 2015, 12:28 AM
Sep 2015

We've had years recently where the stock market was up 20 - 30 %. We could have had a couple of 1/4 percent bumps those years.

One problem though is the government debt. If interest rates were to rise 3 % on government bonds, the additional interest cost to the government would be about $ 550 billion per year. We're in a real pickle.

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