Brexit Bulletin: Carney Returns as Hammond Meets Bankers
Expect fireworks as Carney justifies his post-Brexit policy to lawmakers. Bank of England Governor Mark Carney is back in the spotlight.
Carney will speak before lawmakers today with some fireworks likely after pro-Brexit Jacob Rees-Mogg said the central bank had cut interest rates and resumed asset-purchases without sufficient evidence.
Having warned in the referendum campaign that a vote to leave could possibly trigger a technical recession, Carney’s appearance comes the day after economists at Morgan Stanley and Credit Suisse scrapped calls for the economy to contract.
“No doom, some gloom,” was how economists at Berenberg summed up the economy in a report yesterday as they also raised their forecasts for growth.
The reason for the rethink is well illustrated by Citigroup’s surprise index which measures actual data against forecasts. It has jumped to its most positive level in three years.
Clinton says Trump's comments on the Fed show he should not be president
Democratic presidential candidate Hillary Clinton criticized Republican rival Donald Trump on Tuesday for making comments about the Federal Reserve's monetary policies, which she said should be off-limits for U.S. presidents and presidential candidates.
"You should not be commenting on Fed actions when you are either running for president or you are president," Clinton told reporters on her campaign plane. "Words have consequences. Words move markets. Words can be misinterpreted."
Trump, who has previously accused the U.S. central bank of keeping interest rates low to help Democratic President Barack Obama, said on Monday that interest rates should change.
"They're keeping the rates down so that everything else doesn't go down," Trump said in response to a reporter's request to address a potential rate hike by the Federal Reserve in September. "We have a very false economy."
Crude oil rose
Crude oil rose 0.65 percent to $45.13 a barrel in New York, extending its rebound after the price sank to a three-week low of $43 on Sept. 1. American stockpiles likely expanded by 705,000 barrels last week, according to a Bloomberg survey before official data on Thursday. A Monday meeting between the energy ministers of Saudi Arabia and Russia ended without any specific proposals for measures to support prices.
“The markets will still be watching very closely any concrete action that comes out of what happened between the Saudis and Russia,” said David Lennox, a resources analyst at Fat Prophets in Sydney. Increasing U.S. stockpiles “will be a headwind for any rally,” he added.
Reference: Bloomberg,CNBC
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