Federal Reservations

NEW YORK (MarketWatch) -- Inflation is likely to remain below the Federal Reserve's objective for several years, said New York Federal Reserve President William Dudley on Friday. In a speech two days after the Fed said its long-term inflation goal was 2%, the most explicit the Fed has been in setting an inflation target, Dudley said inflation "may be headed down further." Europe, fiscal policy and housing are inhibiting growth, while slack in the labor market is "unacceptably" high. Risks to the outlook remain skewed to the downside, mainly due to uncertainty about Europe, said Dudley in a speech in New York City. He said the Fed will continue to do its part to support the economy, "but it's not all powerful."

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Treasury prices bounce after a U.S. auction and the Federal reserve says it will keep rates low until late 2014.

Originally from MarketWatch

Treasury prices bounce after a U.S. auction and the Federal reserve says it will keep rates low until late 2014.

Originally from MarketWatch

WASHINGTON (MarketWatch) - U.S. wholesale prices fell 0.1% in December, as the cost of gas and food declined, the government reported Wednesday. Economists surveyed by MarketWatch had predicted a 0.1% increase. The decline in wholesale prices stemmed entirely from lower energy and food costs. They both fell 0.8% last month. Yet core wholesale prices, which strip out the volatile food and energy categories, jumped an unexpectedly high 0.3%. Economists were expecting a 0.1% increase. The core index is viewed by the Federal Reserve as a more accurate gauge of inflationary pressure. Wholesale costs jumped 4.8% in 2011 after climbing 3.8% in 2010. The core rate rose by 3.0% in 2011, the fastest 12-month increase since mid-2009.

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U.S. stock futures edge lower, sinking after Fitch says the European Central Bank must do more to support Italy as investors await the Federal Reserve’s Beige Book report on the U.S. economy.

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U.S. stock futures edge lower, sinking after Fitch says the European Central Bank must do more to support Italy as investors await the Federal Reserve’s Beige Book report on the U.S. economy.

Originally from MarketWatch

U.S. stock futures edge lower, sinking after Fitch says the European Central Bank must do more to support Italy as investors await the Federal Reserve’s Beige Book report on the U.S. economy.

Originally from MarketWatch

NEW YORK (MarketWatch) -- Treasury prices fell on Tuesday, pushing 10- year yields briefly back above 2%, as better data in Europe and rising equities deplete interest in the relative safety of U.S. bonds on the first trading day of the year. The Institute for Supply Management's report on U.S. manufacturing, released at 10 a.m. Eastern time, is also expected to show an improvement in December. Yields on 10-year notes , which move inversely to prices, rose 11 basis points to 1.99%. "We suppose the glib thinking is that it's a New Year and you're supposed to start with risk on the books and justify that afterwards so perhaps, indeed, we'll start with a bit of bond market pressure," said bond strategists at CRT Capital Group. "If so, it's surely going to be limited because to the best of our knowledge so little has changed to lend encouragement to the factors that kept yields low into year end." Also on tap, the Federal Reserve will release minutes from its last policy meeting.

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Gold futures decline further after the Federal Reserve’s decision not to provide additional monetary stimulus, with worries over Europe also remaining in nervous investors’ cross-hairs.

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LONDON (Reuters) - The euro hit an 11-month low against the dollar and stocks eased on Wednesday after the Federal Reserve warned Europe's sovereign debt crisis could hurt the U.S. economy but failed to signal fresh action to stimulate growth.

Originally from Reuters: Business News