Stocks fell sharply on Thursday as U.S.-China trade worries persisted with more companies suspending business with Chinese telecom giant Huawei.Marketsread more
The yield on the 10-year Treasury note fell to its lowest level since 2017 as more traders grew confident in a longer U.S.-China conflict.Bondsread more
A Ministry of Commerce spokesperson does not single out any U.S. action, but it's been a tense couple of weeks for the trade war.World Politicsread more
In a four-page letter sent Thursday morning, Warren and Ocasio-Cortez asked Mnuchin a series of questions about his advisory role in former Sears CEO Eddie Lampert's...Politicsread more
"For them to say that they don't work with the Chinese government is false," Secretary of State Mike Pompeo tells CNBC.Politicsread more
Facebook has stopped paying commission to staff for selling political advertisements on its platform, The Wall Street Journal reported.Technologyread more
Prosecutors allege that Stephen Calk, former president of Chicago-based Federal Savings Bank, loaned former Trump campaign chair Paul Manafort as much as $16 million in...Politicsread more
Oil prices tumble as the market braces for a prolonged U.S.-China trade war and on signs the U.S. is willing to negotiate with Iran.Energy Commoditiesread more
U.S. manufacturer growth hit new lows in May, the latest sign that the economic slowdown accelerated amid the ongoing trade war.Economyread more
Wall Street is under pressure, but a handful of stocks are breaking out to new highs. McDonald's, Waste Management, Hershey, Visa and Costco have notched records this month,...Trading Nationread more
In its 35-year history, Dell has grown from a PC maker to a technology conglomerate with $90 billion in revenue and services in storage, servers, cloud infrastructure and data...Technologyread more
It only took one word from Fed Chair Jerome Powell on inflation to send the markets reeling, and that word was "transitory."
Traders have been speculating that recent weaker inflation readings would concern the Federal Reserve so much that it would cut interest rates later this year. Powell knocked that idea, by explaining that the central bank still sees the weakness as the result of "transitory" factors, such as portfolio management services, lower apparel prices and airfares.
The Fed's target on inflation is 2%, and the core PCE rate watched by the Fed fell to a surprising 1.6% in the first quarter.
"We suspect transitory factors may be at work," Powell said, adding inflation should return to the Fed's target over time, and then be symmetric around its objective. Powell was commenting at a news briefing, following the Fed's two-day meeting.
"If we did see inflation running persistently below, that is something the committee would be concerned about and something we would take into account when setting policy," he said.
Powell said the Fed believes a number of issues were holding back inflation but it's likely they are transitory like the change in cellphone rates that impacted inflation several years ago. "We're going to be watching these things carefully to see if that's the case," he said.
Treasury yields fell, the dollar strengthened and stocks sold off after Powell's comment, and also after he described some of the risk factors impacting the economy as moderating.
"Transitory was word of the day," said Michael Schumacher, director rates at Wells Fargo. "If you look at pricing for fed funds futures for the end of 2019, it moved by about nine basis points. The market is looking a lot more reasonable."
Before the Fed briefing, the fed funds futures were pricing 25 basis points of easing by December.
Schumacher said the market also reacted to the fact that Powell stressed that the Fed is not moving in either direction at this point, though it sees improvement in the global economy and less threat from risk factors, like trade and Brexit.
"They're in the middle at this point, not sitting on either end of the teeter totter, which is what they had been telling people, but the market didn't really believe it," he said.
Stocks were flattish before the Fed statement, and turned negative when Powell began to speak about inflation.
The yield on the 2-year Treasury note jumped to 2.30%. The 2-year correlates closely to expectations for Fed policy, and its low before the Fed's 2 p.m. statement was 2.20%.
"The market was pricing in this rate cut. They want a rate cut and this was basically Powell saying, 'sorry but we're not.' You have gold down, the dollar rallying and Treasurys selling off," said Peter Boockvar, of Bleakley Advisory Group
On Tuesday, President Donald Trump criticized Fed policy, saying it was holding back the U.S. economy. He said the Fed should cut by 1 percentage point and restart a program of quantitative easing, a policy tool used during the financial crisis.