The yield on the benchmark 10-year Treasury note fell below 2% for the first time since November 2016 on Wednesday — breaching a key psychological level.Bondsread more
The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Amazon and Blue Origin founder Jeff Bezos gave more insight into his space company's lunar plans on Wednesday.Technologyread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Delta warned travelers that a technical problem could delay flights on Wednesday.Airlinesread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
If the Trump administration and Congress fail to reach a spending agreement, the White House will offer to keep the government funded at its current levels for a year, Mnuchin...Politicsread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Investors need to be cautious because the economy will get hurt the longer the trade war drags on, Jim Cramer says.Mad Money with Jim Cramerread more
The slow economic growth environment could turn into recession if Washington can't break the political gridlock and step up with meaningful fiscal reform, Allianz Chief Economic Adviser Mohamed El-Erian told CNBC on Wednesday.
"We have relied excessively on central banks," the former co-CEO of Pimco said on "Squawk Box," because the response to the 2008 financial crisis was "too cyclical" minded.
In other words, El-Erian thinks the Fed and its counterparts around the globe have kept the spigots of easy money flowing for too long, hoping growth will come around.
"We as a society fell in love with finance as the engine of growth," he said. "Up to 2008, we depended on private finance. Since 2008, we've depended on central banks. We have forgotten what it takes to grow an economy in an inclusive manner."
El-Erian believes quantitative easing and ultra-low interest rates have done all they can do, and the White House and Congress need to join the fight against stagnation by crafting structural reforms.
But so far, he said: "Politicians are not stepping up to the plate."
"If we're not careful we're going to take a turn where slow growth turns into recession," said El-Erian, who's been warning of the perils of the "new normal" for about seven years now, a phrase he coined while at Pimco.
The economist said these three structural steps could help spur stronger economic growth:
Investing in infrastructure has been a rare point of agreement between the Republican and Democratic presidential nominees, Donald Trump and Hillary Clinton, though they differ on how to do it.
Trump told CNBC last week it's time to "borrow long term" to fix to rebuild roads, bridges, and airports because interest rates are so low. Trump wants to spend nearly double than the $275 billion over five years that Clinton has proposed for infrastructure spending.