Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Saudi Arabia Turns Off the U.S. Oil Tap

At last, Saudi Arabia seems to be doing what it takes to reduce the world's most visible oil glut: the one in the U.S. Unfortunately, its renewed vigor comes as OPEC's deal to reduce excess crude stockpiles starts to show signs of unraveling elsewhere, a subject that will be wrestled with by the group's oil ministers as they and other producer nations meet in St Petersburg on Monday. Saudi Slump Weekly U.S. crude oil imports from Saudi Arabia have fallen sharply since early June So...
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Instant View: Yellen – Economy healthy enough for gradual rate rises

(Reuters) - The United States is healthy enough to absorb further gradual rate increases and the slow wind down of the massive bond portfolio accumulated by the Federal Reserve during the financial crisis, Fed Chair Janet Yellen said in prepared testimony to be delivered to Congress Wednesday morning. Key Points: * Yellen: Interest rates are rising, and "would not have to rise all that much further" to reach what the Fed considers a neutral rate Comments: RICHARD SCALONE, CO-HEAD OF FORE...
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Some Fed officials want to start reducing assets ‘within a couple of months,’ minutes show

Several Federal Reserve officials wanted to start reducing the trillions of dollars of assets held by the central bank "within a couple of months" to accelerate the return to a more normal monetary policy after years of battling the Great Recession, according to an account released Wednesday of their most recent meeting. But other members of the policymaking Federal Open Market Committee advocated for waiting until later this year to start slowly scaling back the Fed's $4.5-trillion balance s...
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The Fed raises interest rates and says more hikes are on the way

Akin Oyedele The Federal Reserve announced Wednesday that it had raised its benchmark interest rate after a two-day policy meeting, as had widely been expected. The Federal Open Market Committee projected two more rate hikes this year, unchanged from its prior estimate of three in 2017. Only one member of the FOMC — the Minneapolis Fed's Neel Kashkari — voted against a rate hike. The FOMC raised the benchmark federal funds rate 25 basis points, to a range of 0.75% to 1%, marking its...
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Trump Tax Plan Could Make Gold Great Again

BY: David Yoe Williams I believe the argument for investing in gold remains compelling both in the near- and long-term, and a Trump tax-reform plan should only help. Gold is already off to a good start in 2017, up some 8% so far to about $1,236 an ounce. Those strong gains follow a year where the metal also rose 8.5% during 2016 despite a poor fourth-quarter showing.   There are several reasons why I believe the commodity, which is mined by Barrick Gold (ABX)  and Randgold Resou...
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Crude oil prices stage meager rally ahead of Fed speech

By Daniel J. Graeber March 3 (UPI) -- Oil prices were relatively flat early Friday as investors watched U.S. crude oil inventories ahead of a data release on exploration and production activity. Crude oil prices lost ground in Thursday trading following reports that Russia was lagging behind its peers in terms of commitments to an effort led by the Organization of Petroleum Exporting Countries to balance an oversupplied market through managed declines. On Friday, the Kremlin said it wa...
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Gold falls as dollar rises, investors retreat

Getty Images Gold bullion bars and coins. Gold fell on Tuesday as the dollar rose and investors sold on expectations of stronger global economic growth and higher U.S. interest rates, while deadly incidents in Turkey and Germany failed to spur safe-haven buying. Spot gold was down 0.7 percent to $1,130.80 an ounce at 12:40 p.m. EDT. Last week it fell to $1,122.35, its lowest since early February. U.S. gold futures slipped 0.8 percent to $1,130.76 per ounce. The dollar was tr...
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The biggest obstacles to Trumponomics: Janet Yellen and the dollar

Ben White | @morningmoneyben Donald Trump is inheriting an economy in pretty good shape with low unemployment, rising wages and a rocking stock market. But the president-elect faces several potentially big obstacles to his plans to goose growth to closer to 5 percent and create tens of millions of new jobs. The biggest immediate threats: Janet Yellen and the dollar. The central bank chair this week moved to bump rates up by a quarter point and made it clear the Fed is prepared to move fa...
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Fed on track to raise rates today: 4 fast facts

by Patrick Gillespie   @CNNMoney America's second interest rate in a decade could be here soon. The Federal Reserve appears poised to raise its key interest rate at the end of a two-day meeting on Wednesday. It would only be the Fed's second rate hike since 2006. The first came in December 2015. Investors are putting a 97% chance of the Fed raising its short-term interest rate by 0.25%. Right now, the rate hovers in a range between 0.25% and 0.50%. Here's a few fast facts about what le...
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