Goldman Says Morgan Is All Wrong About Fed’s Quantitative Exit
Joachim Fels, co-chief global economist at Morgan Stanley, sees a risk that the Fed will keep the easiest credit since the Great Depression for too long. Ed McKelvey, U.S. economist at Goldman in New York, says those concerns are overblown, and that officials have time to deploy as many as 10 options for ending their $1.1 trillion aid to the banking system and economy without letting consumer prices climb.More
Australia’s RBA Sounds Optimistic Note, Holds Rates
Australia’s central bank kept its key cash rate steady on Tuesday, saying the economy was faring better than feared, but left the door open to further easing if a hoped-for recovery failed to materialize.
More
Shock factory output fall in the UK dents recovery hopes
Hopes that the UK economy was starting to climb out of recession have been dampened by an unexpected drop in industrial and manufacturing production. Manufacturing output fell by 0.5 per cent in May, more than reversing small increases in March and April and confounding analysts’ expectations of a 0.2 per cent rise.More
Higher minimum wage coming soon in the US
The federal minimum wage is set to increase later this month as the job market shows signs of further decay. The federal minimum wage will go to $7.25 an hour on July 24 from its current level of $6.55, according to the U.S. Department of Labor.More
Stock futures signal losses as oil slips again
Wall Street was set for a lower open on Tuesday, with futures for the S&P 500, Dow Jones and Nasdaq 100 down 0.5 percent at 4:17 a.m. EDT. Oil prices edged 0.6 percent lower to $63.68 a barrel, on course for a fifth consecutive fall and longest losing streak since February, on worries about the economy that have brought the stock market rally to a halt and pushed the dollar higher.More
