Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt.Technologyread more
The company blamed its Q2 content slate and price increases for the subscriber miss.Technologyread more
IBM's year-over-year revenue has now declined for four quarters in a row. Impact from Red Hat is not yet factored into the company's guidance.Technologyread more
The House voted to table a resolution to start impeachment proceedings against President Donald Trump introduced by Rep. Al Green.Politicsread more
See which stocks are posting big moves after the bell on July 17.Market Insiderread more
"It's clearly doing more harm than good," the "Mad Money" host says. Instead Facebook should buy Square for $70 billion and expand the payments network worldwide.Mad Money with Jim Cramerread more
Silicon Valley workers say they gravitate toward Yang, who is running for president as a Democrat, because of his approach to research and understanding of tech's moral...Technologyread more
Prosecutors in Masschusetts have dropped a criminal case against actor Kevin Spacey, who had been accused of groping an 18-year-old man.Entertainmentread more
"The passport contains numerous ingress and egress stamps, including stamps that reflect use of the passport to enter France, Spain, the United Kingdom, and Saudi Arabia in...Politicsread more
Loup Ventures founder Gene Munster told CNBC's "Fast Money" on Wednesday that Netflix's disappointing second quarter results are a turning point for the company, saying the...Technologyread more
Corporate earnings forecasts for the second quarter were lowered so much that companies are easily beating them.Market Insiderread more
Federal Reserve Chairman Jerome Powell said the relationship between unemployment and inflation has collapsed.
"The relationship between the slack in the economy or unemployment and inflation was a strong one 50 years ago ... and has gone away," Powell said Thursday during his testimony before the Senate Banking Committee. He added the strong tie between unemployment and inflation was broken at least 20 years ago and the relationship "has become weaker and weaker and weaker."
"In additional to that, we are learning that the neutral interest rate is lower than we had thought and ... the natural rate of unemployment rate is lower than we thought. So monetary policy hasn't been as accommodative as we had thought," Powell said.
Under the Fed's dual mandate of full employment and price stability, the jobless rate has been historically low, inching up to 3.7% in June from 3.6% in May, which was the lowest since 1969. Inflation, however, has been tame in recent years and consistently below the Fed's 2% target.
The so-called Phillips curve, which the Fed relies on in guiding its policy direction, argues that as unemployment declines, inflation should rise, a phenomenon that has not occurred during this economic expansion.
"At the end of the day, there has to be a connection because low employment will drive wages up and ultimately higher wages will drive inflation, but we haven't reached that point. In many cases, that connection between the two is quite small these days," the Fed chief said.
U.S. underlying consumer prices rose by the most in nearly 1½ years in June, but the jump didn't change markets' expectation for a rate cut later this month.
Traders are pricing in a 100% chance of a rate cut in July in part because inflation has remained so low, according to CME FedWatch tool. Powell's testimony also fueled the hope for an easier policy.
Powell said Wednesday that the Fed will "act as appropriate" to sustain expansion as "crosscurrents" are weighing on the economic outlook. He noted business investments across the U.S. have slowed "notably" recently.
The Fed lowered its inflation target for 2019 at its June policy meeting, seeing headline inflation growing at a slower pace of 1.5%, versus the 1.8% predicted in March.