Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The lack of clarity surrounding the U.S.-China trade war is what's really hitting global growth, says ex- Deputy Treasury Secretary Sarah Bloom Raskin.World Economyread more
China's economy has long relied on factors such high levels of investments and an expanding labor force for growth. Those growth drivers are running out of steam.China Economyread more
India could benefit from the fallout in the U.S.-China trade war, experts told CNBC — but much-needed reforms on land and labor could prove to be a challenge for companies...Asia Economyread more
New crash tests show the Tesla Model 3 and the Audi e-tron, are among the safest models out on the road. The results bolster the theory electric vehicles may be better...Autosread more
U.S. consumers and growth in sectors such as technology have offset declines in other American industries, says Tom Finke, chairman and CEO of investment management firm...US Economyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle. While there, he's scheduled to meet with Boeing executives and be briefed...Airlinesread more
Last weekend's attacks on oil facilities — and the spike in crude prices that followed — should show that the world needs to stop relying on oil, says Helen Clark.Energyread more
The photo depicts Canadian leader Justin Trudeau wearing a turban and robe, with dark makeup on his hands, face and neck. Liberal Party spokesman confirms the photo is of...Electionsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
CBS, CNN and other major media companies are starting to pull e-cigarette advertising off their airways, as the death toll from a mysterious vaping-related illness continues...Health and Scienceread more
Stocks will experience a correction this quarter as the Federal Reserve leads other central banks in tightening global monetary policy, a strategist at Stifel predicts.
"With late cycle U.S. tax cuts occurring after GDP has recovered, the Fed must tighten to offset loose fiscal policy," Barry Bannister, the firm's head of institutional equity strategy, said in a note Friday. He also said other central banks will follow the Fed's lead.
"Although it is fashionable to believe in Davos-man cooperation, the Fed is the pace setter for all the world's central banks," Bannister said. "The U.S. was first-in/first-out of the Global Financial Crisis, … and the Fed will be the first central bank to shed politicized rescue efforts and lead other central banks back to independence, in our view."
Bannister isn't the only strategist predicting a pullback. Goldman Sachs strategist Peter Oppenheimer said Monday a correction could be heading the stock market's way in coming months. Michael Hartnett of Bank of America Merrill Lynch said a "sell" signal was triggered in the week ending last Wednesday as investors poured $33.2 billion into stock-based funds.
The is on its longest stretch without a 5 percent pullback since 1929. The index last fell at least 5 percent in June 2016.
The Fed's latest interest rate decision will come Wednesday. Fed policymakers meet again on March 20-21.
"Investors have traded a 'competitive game' among central banks for the past five years, but we see central banks transitioning to a 'cooperative game' in which they reassert independence and move to neuter potentially destructive bubbles," Bannister said. "Such a strategy could come into focus by the March Fed press conference, implying a correction within the quarter."
Central banks around the world implemented unprecedented easy monetary policy following the financial crisis. The purpose of these policies was to reignite the global economy. The biggest economies in the world all grew at once last year for the first time since the crisis. The global synchronous growth gives central banks more leeway to tighten monetary policy.
Global interest rates have already started to move higher. The U.S. 10-year Treasury note yield hit its highest level in nearly four years on Monday. The 10-year German bund yield reached a level not seen since 2015, while the 10-year Japanese note yield rose to its highest level since July.