Cyberattacks against accounting software firm Wolters Kluwer and the City of Baltimore in May showed how the newest wave of malicious hacking can have significant, often...Technologyread more
The European parliamentary election is the second largest democratic exercise in the world.Europe Newsread more
Biden had criticized Kim Jong Un as a "dictator" and a "tyrant" at a recent rally in Philadelphia. North Korean state media responded by calling Biden a "fool of low IQ" among...Politicsread more
Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Fiat Chrysler and France's Renault could soon partner up to take on the sweeping changes to the global auto industry, according to a report in the Financial Times. The...Autosread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
The U.S. economy is at risk of slowing down no matter what the Federal Reserve decides to do with interest rates because pressure from the global economy will remain, United Services Automobile Association's Wasif Latif told CNBC on Monday.
Even if Chairman Jerome Powell decides this week against one more rate hike, Latif, USAA's head of global multi-assets, warns more challenges will follow a "temporary reprieve."
"Globally the world is slowing down, we just haven't slowed down as much," he said on "Power Lunch." "So there's a risk that we slow down as well."
Investors worry that a fourth interest rate increase in 2018 would be a burden on stocks and the economy. The three major indexes all opened in correction territory and closed down more than 2 percent Monday. The S&P 500 finished at 2,545.94 to set a new 52-week low.
But Latif argues that a potential December hike is "more or less baked in." The Fed has forecast three hikes in 2019. Traders will learn if the central bank changes course on a rate path on Wednesday.
"It depends on what the message is after the hike. If it's a message just like it was in early 2016, we could be off to the races again and enjoy a value-led rally like we saw in 2016," Latif said. "If not, if they stick to their guns and they're saying that 'we're going to continue to raise,' then there's a continued risk of volatility."
In international markets, data from Europe and China are showing signs of slowdown in those economies. While the consumers and jobs numbers say the U.S. economy is still strong, Latif noted that manufacturing numbers softened because corporations have taken a "cautionary approach."
New York manufacturers reported Monday that business expansion is slower than expected in December. The Empire State Manufacturing Survey's general business conditions index, aggregated by the Federal Reserve Bank of New York, is 10.9, which is nearly half of the 20.6 print economists expected in a Refinitiv poll.
The U.S. economy is prone to a butterfly effect because the world economies are intertwined, Latif said.
"There's a lot of connectivity in the world and because of that we can't avoid a slowdown if the rest of the world is continuing to slow down. So central bank tightening does become really important, so we need that outlet," he said.