Powell Hints a Rate Cut is Coming

384px Jerome H. PowellFed Chairman Jerome Powell strongly hints a rate cut is comingCNN
"Federal Reserve Chairman Jerome Powell on Wednesday strongly hinted at a potential rate cut later this month, citing unresolved trade tensions and worries over the weakness of the global outlook. In prepared testimony ahead of his first appearance on Capitol Hill, Powell told House lawmakers that since the Fed's last interest-rate policy-setting meeting in June, two of the major forces that have the potential to drag down the US economy remain a concern.

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Recession Risk is Growing

Alligator BirdsGovernment Bond-Market Measure Says Recession Risk GrowingWall Street Journal
"The yield on short-term Treasurys has been higher than on long-term notes for more than 30 consecutive trading sessions, a sign that investors are concerned about the durability of the decadelong economic expansion. The yield on three-month bills has exceeded that of the benchmark 10-year Treasury note by as much as 0.259 percentage point, the most since May 2007, before the financial crisis. Shorter-term bill yields tend to reflect expectations for Federal Reserve interest-rate policy, while those on longer-term securities move largely with expectations for growth and inflation.

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Inside the Fed's 'Hall of Mirrors' Problem

fuzzy mirrorssmInside the Fed's 'hall of mirrors' problem - CNN Business
"The Federal Reserve has allowed itself to get backed into a corner by Wall Street. That means the central bank may need to slash interest rates - even if it doesn't want to. Markets believe a rate cut later this month is a slam dunk, and the Fed has done little to push back against that thinking. Keeping rates steady would create a market shock — one that could infect the real economy by denting confidence.

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Gold Prices Could Reach $2,000

gold 2800315 640Gold prices could reach $2,000 by the end of the year, strategist saysCNBC
"Gold prices can continue to climb even after they hit a multi-year high last week, a global investment strategist said Monday. In fact, prices are set to 'reach $2,000 by the end of the year,' predicted David Roche, president and global strategist at London-based Independent Strategy....

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