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Investopedia
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The time for interest rate cuts is here, several Federal Reserve officials said Friday in response to more data showing a softening of the labor market.
Investors have felt certain that the Federal Reserve's policy-setting committee will begin cutting its influential fed funds rate at its Sept. 18 meeting, despite only vague indications from central bankers themselves. However, several Fed officials used public speaking engagements Friday to be more explicit about their projections for the path of monetary policy.
Federal Reserve Gov. Christopher Waller said the jobs report released earlier in the day helped make the case for a rate cut.
“As of today, I believe it is important to start the rate-cutting process at our next meeting,” Waller said during a speech at the University of Notre Dame.
Friday is the last day for Federal Reserve officials to comment on monetary policy before the blackout period that proceeds Federal Open Market Committee meetings. Waller wasn’t the only Fed official to use his last public comments to lay out the case for rate cuts at the upcoming meeting.
“It is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate,” New York Fed President John Williams told an audience at the Council on Foreign Relations.
The comments come after Friday's jobs report showed employers hired fewer workers than expected in August, providing more evidence that the labor market is slowing down in line with Fed officials' expectations.
“The data today is consistent with what we’ve been seeing—a slowing economy, a bit of cooling off in the labor market,” Williams said.
The Fed hiked interest rates when inflation surged in 2022 and held it at its highest level since 2001 for the last year. Now, both inflation and the jobs market are showing signs of cooling.
That's forced central bankers to focus on cutting interest rates before the labor market cools too much. Reducing interest rates will bring down borrowing costs across the economy, from mortgage rates to car loans to credit cards. That, in theory, should increase demand for goods and services, requiring employers to hire more workers.
In his remarks, Waller suggested upcoming data could influence the Federal Reserve to consider cutting even more than the quarter-percentage point reduction initially expected.
“If the data supports cuts at consecutive meetings, then I believe it will be appropriate to cut at consecutive meetings. If the data suggests the need for larger cuts, then I will support that as well,” Waller said.
In an interview with MarketWatch this week, Chicago Fed President Austan Goolsbee expressed similar sentiments. He said recent data showed the central bank should not only cut rates “soon” but also plan to reduce them further at future meetings.
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Instablog9ja
2 hrs
11
Operatives of the Ilorin Zonal Directorate of the Economic and Financial Crimes Commission (EFCC) have arrested 44 suspected yahoo boys at different locations in Ilorin, Kwara State.
They were arrested on Friday, September 6, 2024, at Sango, Kulende, Taxaco, and Harmony Estate, all in Ilorin, following credible intelligence regarding their alleged involvement in internet-related offenses.
Items recovered from them include six different brands of exotic cars, laptops, smartphones, and charms.
#Instablog9jaNews #Information #Awareness #StayUpdated
Instablog9ja
3 hrs
10
A Vlogger has revealed how her mum displayed her doting side by putting everything aside to accompany her to the venue of an interview for her own safety.
She shared a photo of her mum seated a close distance from where she stood, as her mother’s gesture left her shocked because of the distance they traveled.
Instablog9ja
5 hrs
14
The National President of the Association of Small Business Owners of Nigeria (ASBON), Mr Femi Egbesola, has said that at least eight million small businesses in Nigeria have shut down in 18 months due to the economic hardship in the country.
Egbesola said that approximately twenty percent of businesses in the country were compelled to stop operations from January 2023 to June 2024, attributing this alarming trend to the economic policies implemented by President Buhari and Tinubu’s administrations.
Speaking in an exclusive interview with SaharaReporters on Friday, September 6, he said: “We have had cases where businesses shut down. We have around 40 million small businesses in the country and with 20% already shut, it would mean that we have about 8 million businesses shut.
Many persons have di3d from shutting their businesses, some could not fulfil their loan obligations, so they di3d from the pressure. Others are in the hospital as of now.
A state of economy should be declared as we are the highest employer of labour (referring to small-scale businesses). We account for 86% of the country’s workforce and you can imagine what happens when small businesses cannot survive.
Businesses are now downsizing, for instance, I used to have 52 workers but now I have only 14. Imagine that kind of downsizing due to economic issues.”
#Instablog9jaNews #Information #Awareness #StayUpdated
Investopedia
10 hrs
9
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Regulators in the U.K. are investigating Live Nation Entertainment's (LYV) Ticketmaster unit over reported customer issues with tickets purchased for the recently announced reunion tour of the 90s band, Oasis, specifically whether the company's "dynamic pricing" feature may have violated consumer protection laws.
The Competition and Markets Authority (CMA) said that it wants to hear from fans who feel they may have been misled during the purchasing process about what price they would end up paying or pressured to buy tickets out of fear that the price could go up soon after, both of which could be deemed violations of consumer protection laws.
The agency said the opening of its investigation doesn't necessarily mean Ticketmaster broke any laws, and said it wants to hear from those affected over the next two weeks as it also gathers information from Ticketmaster and other parties.
"It’s important that fans are treated fairly when they buy tickets, which is why we’ve launched this investigation. It’s clear that many people felt they had a bad experience and were surprised by the price of their tickets at check-out," said CMA Chief Executive Sarah Cardell. "We want to hear from fans who went through the process and may have encountered issues so that we can investigate whether existing consumer protection law has been breached."
The UK regulator also said it has previously called for more extensive protections for ticket buyers, and that it is considering broader action against the practice of dynamic pricing—in which prices can change rapidly based on demand—in industries aside from ticketing.
Live Nation and Ticketmaster are already facing legal action in the U.S., as the Department of Justice filed a lawsuit in May accusing the company of monopolistic behavior and violating antitrust laws. The suit claimed Live Nation often threatens or retaliates against venues that choose a ticket seller other than Ticketmaster, and said its fees are excessive for consumers.
Live Nation shares were nearly 1.2% lower at $93.10 Friday afternoon.
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Investopedia
13 hrs
10
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Shares of Super Micro Computer (SMCI) dropped Friday after J.P. Morgan analysts downgraded the server maker's stock, citing concerns over the company's delayed annual report.
The analysts downgraded Super Micro's stock to "neutral" from "overweight" and cut their price target to $500 per share from $950—valuing the stock more similarly to other hardware manufacturers with "lower growth trajectories to account for the uncertainty."
Super MIcro's shares were recently down about 6% to near $389 apiece, leaving them up some 35% this year. Wall Street's mean price target is just above $450, according to Visible Alpha.
Super Micro recently delayed the release of its annual report, saying it needed more time to "complete its assessment of the design and operating effectiveness of its internal controls over financial reporting."
JP Morgan's analysts said the delay, which isn't Super Micro's first, could have an impact on the behavior of customers who could be looking for better prices from the server maker. They noted the delay could also cause an "overhang," recommending new investors "remain on the sidelines" until the uncertainty is resolved.
There is "not a clear rationale" for new investors to buy into Super Micro's stock until the company's regulatory issues are resolved," they wrote.
The stock has been under pressure following lackluster earnings. A report in late August from short seller Hindenburg Research accusing the company of “accounting manipulation, sibling self-dealing and sanctions evasion."
JPMorgan analysts wrote when the report was released that they believed there was "limited evidence" of problems with Super Micro's accounting, and said other issues raised like not communicating sales properly to investors do "not immediately suggest any wrongdoing."
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