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
After tamping down on shadow banking in the last few years, China will now likely encourage such lending to boost economic growth, a Chinese economist told CNBC on Monday ahead of the country's annual parliamentary session.
"The top agenda of (the) NPC this year is to design policies to prevent further decline (of growth rate)," said Xiang Songzuo, professor at Renmin University in Beijing, referring to the National People's Congress, which kicks off on Tuesday.
"I think this year, regulators will encourage more shadow banking financing, particularly to the private sector," said Xiang, who was previously a deputy director at the People's Bank of China and chief economist at the Agricultural Bank of China.
Shadow banking refers to activities performed by financial firms outside the formal banking sector, and therefore subject to lower levels of regulatory oversight and higher risks.
According to Xiang, Chinese officials have moved from talking about cutting debt to stabilizing the economy.
China's GDP target last year was around 6.5 percent. Sources have told Reuters that Beijing will likely set a growth target of between 6.0 to 6.5 percent in 2019.
Shadow banking is "coming back," Xiang said. In addition to spending more on infrastructure, Beijing will also need to stimulate the economy through lending, particularly to the private sector, he added.
There have been worries that such practices may mask the amount of risk that banks and other financial entities take on, as shadow banking activities are off the balance sheets due to accounting practices.
Those debt concerns have led some to claim that shadow banking in the Chinese economy could eventually lead to a financial crisis if the bubble bursts, although Morgan Stanley has said Beijing will likely better manage the risks of people borrowing from non-official channels this time, compared to years ago.
Beijing will need to tread a tightrope as it faces the dilemma of what increased shadow lending could bring, said Xiang.
"On the one hand, they need shadow banking to finance investment; but on the other hand, they (need to) try to control the potential risks," he added.