Austan Goolsbee News

(Reuters) — U.S. stock index futures recovered some ground on Wednesday from a sharp sell-off in the previous session, as data showed inflation did not cool as expected, fanning uncertainty on the timing for the Federal Reserve's first interest rate cut in 2024.

Federal Reserve won't start easing policy until May, traders bet on Friday, capping a week during which stronger-than-expected economic data and commentary from central bankers chipped away at financial market confidence in the idea of an earlier start to interest-rate cuts. On Friday, a widely watched measure of consumer sentiment rose to its highest level in 2-1/2 years, and Chicago Fed President Austan Goolsbee said the U.S. central bank won't commit itself to rate cuts until it is surer that inflation is on track to a healthy 2%. Futures contracts that settle to the Fed's policy rate fell, and now reflect about a 47% chance of a Fed rate cut by March, down from 55% earlier in the day. Just a week ago the probability of an interest-rate cut in March from the current range of 5.25%-5.5% was seen at nearly 80%, reflecting faster-than-expected declines in inflation.

dollar advanced on Friday and was poised for a weekly gain, as recent economic data and comments from Federal Reserve officials have cooled expectations of rapid cuts in interest rates. Economic data showed the University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 78.8 this month, the highest reading since July 2021, compared with 69.7 in December and the 70.0 estimate of economists polled by Reuters. «The doom and gloom crew is very vocal, especially among politicians,» said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin. «Yet, businesses and individuals have been quietly plugging away, trying to make the best of their situations.

Indian rupee inched up on Wednesday, supported by strength in some of its Asian peers, but gains on the local unit are likely to be limited on dollar buying interest from local oil companies and importers. The rupee was at 83.15 against the U.S. dollar as of 10:15 a.m.

Investing.com — U.S. stocks traded marginally higher Tuesday, struggling to continue the recent rally as Federal Reserve policymakers attempted to rein in investors’ hopes for potential future interest rate cuts.

(Reuters) — U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year.

Investing.com-- Gold prices fell slightly on Tuesday after several Federal Reserve officials downplayed expectations that a dovish pivot by the central bank was imminent, which helped stem recent losses in the dollar.

Investing.com — The S&P 500 closed higher Monday, shrugging off attempts from Federal Reserve officials to cool expectations for sooner rather than later rate cuts. 

A Federal Reserve official said Monday that the market may have misunderstood the central bank's intended message last week after stocks and bonds rallied sharply.

After keeping interest rates unchanged last week, the US Fed signaled its intention to begin reducing interest rates next year.

Investing.com — U.S. stock futures edged higher Monday at the start of the last full trading week before the Christmas holidays, continuing the recent positive tone driven by expectations for Federal Reserve rate cuts next year.

Making Money host Charles Payne discusses the Dow being on pace for a record close, automakers announcing layoffs and Democratic Rep. Ro Khanna proposing legislation to ban stock trading in Congress.

Bitcoin (BTC) is backing off after hitting fresh highs for the year in the $38,800s earlier in the session, but at current levels in the $38,300s, is still up close to 2% in the past 24 hours.

Federal Reserve officials, with upbeat consumer data providing some lift. All three major U.S. stock indexes lost momentum as the session progressed, but ended the range-bound session in the green. «Even marathon runners have to pause, to take a breath and a drink of water.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, suggested that the economy appears to be on what he calls the “golden path,” another term for what economists often term a “soft landing,” in which the Fed would curb inflation without ...

By Ann Saphir

(Reuters) — U.S. inflation is cooling at what could prove to be its fastest pace in at least 40 years, if not longer, with only a limited rise in the unemployment rate, Chicago Federal Reserve President Austan Goolsbee said on Tuesday.

by Sujata Rao and Tassia Sipahutar

Investing.com — In the coming week U.S. inflation data will be closely watched, along with comments from several Federal Reserve officials, which will help investors shape their views on the future path of interest rates. Retailers are due to report earnings against a background of persistent concerns over inflation and the economic outlook and oil prices look set to remain volatile. Here’s what you need to know to start your week.

By Amruta Khandekar and Shristi Achar A

Stocks edged lower as investors awaited clues on the path of interest rates from a raft of central bank officials including Federal Reserve Chair Jerome Powell.