TOKYO, July 13- Japan's government on Wednesday cut its forecasts for consumer prices and economic growth, a blow to the Bank of Japan's ambitious project to achieve 2 percent inflation with massive purchases of government debt. The government expects consumer prices to rise 0.4 percent in the current fiscal year ending in March 2017, down from a 1.2 percent... » Read More
A weaker-than-expected U.S. employment report could increase pressure on the Federal Reserve to undertake a third round of quantitative easing, former Federal Reserve Governor Randy Kroszner said Friday.
"We really have two separate economies. One economy is behaving reasonably well; in the second economy, there is an extreme level of forward discounting going on. You can see it in the spreads between the 30-year Treasury on the one hand, and the 5-year Note, that spread is the largest in history," says Alan Greenspan, former Federal Reserve chairman, sharing his perspective on the problems facing the U.S. economic recovery.
Weak gold prices, softening oil prices and a lackluster stock market while the euro zone crisis could increase demand for U.S. dollars — but is deflation the next stop?
Investors are focusing on the wrong inflation numbers in China, says Hong Kong-based investment banker Sean Darby. While the consumer prices are widely considered the headline inflation gauge, the Chief Global Equity Strategist at Jefferies say producer prices give a clearer picture of the economy, and those are pointing to a "deflationary"environment.
CNBC's Rick Santelli and Steve Liesman break down the first quarter's GDP results and discuss its impact on the markets and what it indicates about the health of the U.S. economic recovery.
Workers around the developed world have been complaining of a squeeze on incomes over the past 20 years, but in Japan, thinner pay packets fuel wider deflation — making it even harder for the government to rein in its debt and for the BOJ to boost growth. The FT reports.
Given that title inflation has been with us since the 1980s, in everything from estate agents’ property descriptions to job titles for students in summer jobs frying hamburgers, we should not be surprised that “printing money” in the 21st century is referred to as “quantitative easing”.
The euro may have had a rough week, but this strategist sees a way it could reverse course - sharply.
Global economics may be pushing oil lower, but this strategist says political forces will limit its fall, and she has a trade on that view.
European markets experienced a rare moment of respite yesterday. But this was just a pause in the panic. No comprehensive solution to the continent’s sovereign debt woes seems to be near at hand.
The euro zone's "garlic belt" states (Greece, Italy, Portugal and Spain) will have to endure deflation to catch up in competitiveness with the other, "butter belt" members, according to a report by research firm Smithers & Co.
European and U.S. inflation will rise in the medium- to long-term, according to Berdibek Ahmedov, manager for European and UK real return products at Pacific Investment Management Company (Pimco).
Should the Federal Reserve abandon its traditional tactic of targeting interest rates in favor of targeting a specific level of nominal gross domestic product?
The U.S. economy is unlikely to slip back into recession, and an improvement in recent indicators has been encouraging, Atlanta Federal Reserve Bank President Dennis Lockhart said on Tuesday.
"I think the risk of deflation is much greater than the risk of inflation because of all the headwinds that are against us, and there is no real sign that there is a wage-price spiral building up here," Ruth Lea, economic advisor at Arbuthnot Banking Group, told CNBC.
Stocks rallied on Monday and Tuesday on hopes that policy makers where about to get their act together and unveil a credible solution to the euro zone debt crisis. On Wednesday the bears where back in charge as stocks and commodities came under renewed pressure amid fears a euro zone resolution was not as close as had been hoped.
While moderate inflation is actually a good thing for a healthy economy, inflation can also occur when the economy is stagnant.
The best outcome for the United States is "some nominal growth or some acceleration in nominal growth," Wayne Lin, portfolio manger and investment strategy analyst for Legg Mason Global Asset Allocation, told CNBC Tuesday.
Reading Fedspeak has never been easy, but these tips might help you weigh the odds of another round of pain for the dollar - er, quantitative easing.
It takes a strong stomach to navigate the currency markets this week. If you can handle the stress, here's a trade for you.