Wednesday, September 09
Jackson Hole, Wyoming: Jerome Powell, the chair of the Federal Reserve, on Friday used a closely watched speech to send his strongest signal yet that the central bank is preparing to soon restart interest rate cuts, highlighting the labour market's vulnerabilities even as inflation accelerates.Powell held back from explicitly endorsing a reduction in borrowing costs at the Fed's next meeting in September. But his emphasis on the prospects of a weakening economic backdrop made clear that a cut is likely next month."The balance of risks appears to be shifting," Powell said in his final speech as Fed chair at an annual conference hosted by the Reserve Bank of Kansas City in Jackson, Wyoming. With borrowing costs weighing on the economy, the labor market softening and inflation risks contained
The European Central Bank is likely to keep interest rates on hold next month but discussions about further cuts may well resume in the autumn if the economy weakens, five sources told Reuters. ECB President Christine Lagarde said in July the euro zone's central bank was "in a good place" as it left its key rate at 2%, bringing a year-long cutting cycle to an end and leading investors to bet on a prolonged pause. Data since then showed the euro zone economy was proving more resilient than expected while inflation hovered at the ECB's 2% target, central bank officials in Europe and at the Federal Reserve's Jackson Hole Symposium said. Meanwhile tariffs imposed by U.S. President Donald Trump's administration on European Union imports, at 15% for most goods, were close to the ECB's own expect
Mumbai: Equities ended lower Friday, snapping a six-day gaining streak, as investors booked profits amid concerns over additional 25% US tariffs on Indian exports taking effect next week. The Centre's proposed indirect tax streamlining, which boosted the gauges earlier this week, failed to influence the market's direction in the absence of fresh positive cues.The Nifty fell 213.65 points, or 0.85%, to close at 24,870.1. The Sensex declined 693.86 points, or 0.85%, to end at 81,306.85. Both benchmark indices have ended the week nearly 1% higher, underpinned by prospects of lower producer levies stoking busy-season consumer demand."Markets saw some profit booking on Friday, despite ending the week in positive territory, largely due to global concerns and the potential imposition of an additi
MUMBAI: The absolute effects of GST restructuring on indirect tax collections and fiscal policy will eventually impact market interest rates, Saugata Bhattacharya, external member of the Monetary Policy Committee, told ET.The announcement to reform the GST structure shows that growth is the government's priority even at the risk of potential fiscal slippage, economists said. This has led to the discussion on whether this will have to be complemented by monetary easing."In principle, monetary policy is always ready to support growth, but not at the cost of price stability. The proposed GST rate slab transition changes should initially result in a fall in prices of most goods and services," Bhattacharya said in an email interview."However, with the higher disposable incomes likely to incenti
