US Economy

Has Fed turned hawkish or did Yellen misspeak?

Fed chairman Janet Yellen says interest rates may be left unchanged if inflation in the US remains at a low level. Photo: MCT

The Federal Reserve is telling us that not much has changed in the economy in the United States except rates are going to rise faster.

Friday, 21 March, 2014, 12:59am

US economic growth to speed up to 3.1pc, White House says

The US unemployment rate will ease to an average of 6.9 per cent this year under the White House's projections. Photo: Bloomberg

The White House forecast more robust economic growth in the United States this year than last year and a further pick-up in the economy next year.

12 Mar 2014 - 5:21am

Asian markets battered after Wall Street hit by poor US data

Markets in Tokyo fell more than 4 per cent. Photo: EPA

Asian markets slumped on Tuesday – led by a four per cent fall in Tokyo – following a huge sell-off on Wall Street as disappointing US manufacturing data compounded already deep fears about emerging markets.

4 Feb 2014 - 11:52pm

US GDP growth of 2.8 per cent masks weak consumer spending

Increases in private inventory helped push the US GDP up. Photo: AP

The US economy grew at an annual rate of 2.8 per cent in the third quarter, the government said on Thursday in a report that revealed weakness in vital consumer spending.

8 Nov 2013 - 11:56am

Moody’s eases off threat of US rating cut, affirms Aaa

Ben Bernanke testifies in front of a screen showing tallying the US national debt. Photo: AFP

Moody’s Investors Service has raised the US sovereign outlook to stable from negative and affirmed the country’s triple-A rating, citing steady growth despite reduced government spending.

The rating agency’s move eased the threat of a cut to the world’s biggest economy.

19 Jul 2013 - 11:37am

China no longer just an economic juggernaut

In London, China owns 10 per cent of Heathrow. Photo: AFP

Regardless of whether the 21st century will remain an American century, authors Heriberto Araújo and Juan Pablo Cardenal have outlined in The New York Times how China is already building an "economic empire" across the globe, including the acquisition of Western iconic assets.

17 Jun 2013 - 4:23am

US retail sales rise in May in sign world's biggest economy is recovering

The US economy is showing signs of resilience that could prompt the Federal Reserve to cut back on its quantitative easing programme.

The signs of resilience in the economy, despite belt-tightening in Washington, could heat up the debate on when the Federal Reserve might start scaling back its expansive monetary stimulus.

14 Jun 2013 - 3:49am

Irrational financial markets disprove wisdom of crowds

Irrational financial markets disprove wisdom of crowds

Anyone who still believes in the wisdom of crowds should take a look at what has been going on in the financial markets. A market, after all, is made up of a crowd of investors, and its price fluctuations represent swings in the aggregate sentiment of that crowd.

14 Jun 2013 - 3:49am 1 comment

Rivals drawn to Latin groove

A Brazilian worker on the production line for Mexican drinks maker Del Valle. Strong trading links are building within the region. Photo: AFP

Although the Chinese and US presidents heralded a "new model" of co-operation at their weekend summit, a growing competition looks more likely. The whirlwind of activity before Barack Obama hosted Xi Jinping in the California desert revealed that Beijing's and Washington's sights are set on a similar prize - and face differing challenges to attain it.

14 Jun 2013 - 3:49am

S&P revises US credit outlook to ’stable’ from negative

Standard & Poor’s has removed the near-term threat of another credit rating downgrade for the US credit by revising its outlook to stable from negative, citing an improved economic and fiscal outlook.

The change effectively means there is less than a one-third chance of a downgrade in the next two years.

11 Jun 2013 - 11:30am

US hiring points to resilience in economy

Job seekers pick up fliers adverising jobs during a career fair in Los Angeles. Photo: AFP

US employers stepped up hiring in May in a show of economic resilience that suggests the Federal Reserve could begin to scale back the amount of cash it is pumping into the banking system later this year.

8 Jun 2013 - 3:39am 2 comments

Why US economy will continue to lead the competition

Pump jacks are seen in the Midway Sunset oilfield, California. The nearby vast Monterey shale formation is estimated to hold 15 billion barrels of technically recoverable oil. Photo: Reuters

Travelling in the US this week reminded me how fundamentally resilient and competitive its economy is. Washington did not show any signs of recession, with the perfect blend of cool summer evenings and young students and old tourists wandering around.

8 Jun 2013 - 2:11am 1 comment

Fed shackled to stimulus amid US, global economic tapering

The Federal Reserve will be keeping an eye on whether the gains in the US property market will be sustained. Photo: Bloomberg

San Francisco Federal Reserve president John Williams said on Monday that the US central bank might start to "taper" bond purchases in coming months as part of a slow reeling back of monetary stimulus. Dennis Lockhart, the president of the Atlanta Fed, held it out as a possibility, saying tapering might be considered as a possibility in August or September but stressed that now was not the time.

6 Jun 2013 - 4:46am

Noteworthy trading edge

The Fed's loose monetary policy has kept the US dollar low against currencies of emerging markets, where rates are higher. Photo: Bloomberg

The surge that propelled the US Dollar Index to its highest level since 2010 has diverted attention from the greenback's 30-year low against emerging-market currencies, providing a boost for the Obama administration's export goals.

1 Jun 2013 - 4:19am

Abolishing corporate tax would send wrong message

Apple CEO Tim Cook testifies at a Senate homeland security and governmental affairs investigations subcommittee hearing on offshore profit shifting and the U.S. tax code, on Capitol Hill in Washington. Photo: Reuters

Apple's chief executive, Tim Cook, did not cower when he testified before the US Congress. He came out fighting and boldly told his senator inquisitors: "We pay all the taxes we owe, every single dollar."

1 Jun 2013 - 1:36am