Category: Politics

Wall Street Trims Early Gains After Bernanke Dashes Easing Hopes

07-Jun (MoneyNews) — Stocks rose on Wall Street Thursday after China cut its benchmark lending rate in another bid to boost its slowing economy, but an early rally faded after Federal Reserve Chairman Ben Bernanke gave no signal of immediate action to prop up the U.S. economy.

The Dow Jones Industrial Average was up 80 points at 12,494 shortly after noon. It had been up as much as 140 points earlier. On Wednesday the stock market had its biggest gain of the year on hopes that more economic stimulus might be on the way in the U.S. and Europe.

China cut its benchmark lending rate for the first time in nearly four years, adding to efforts to reverse a sharp economic downturn. It was the first rate cut since November 2008.

“Markets received a near-term shot of adrenalin from China,” said Matthew Kaufler, portfolio manager at mutual fund group Federated Investors. “China is the world’s economic locomotive at the moment and it can’t afford to slow down at a time when other major economies are in precarious positions.”


Posted in all posts, Economy, Politics |

Bernanke: Fed Ready to Act if Europe Hits U.S.

07-Jun (The Wall Street Journal) — The U.S. economic recovery faces significant risks, including from the European sovereign debt crisis and uncertain U.S. fiscal policy, Federal Reserve Chairman Ben Bernanke said in testimony prepared for a congressional hearing on Thursday.

Still, the Fed chairman stopped short of signaling Fed action to combat these risks, other than to say that the Fed remained “prepared to take action” to protect the U.S. economy and financial system if stresses on the financial system escalate.

In all, Mr. Bernanke’s testimony was more restrained than comments offered this week by other Fed officials, including Wednesday evening comments by vice chairwoman Janet Yellen, which laid out detailed arguments for why the Fed might to take new actions to bolster the economy and protect it from risks to growth.


Transcript of Chairman Bernanke’s opening statement:

Posted in all posts, Gold News, Politics |

US initial jobless claims -12k to 377k for the week ended 02-Jun, below expectations of 380k, vs upward revised 389k in previous week.

Posted in all posts, Economy, Politics |

Greece Warns of Going Broke as Tax Proceeds Dry Up

05-Jun (New York Times) — As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money.

Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals.

Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled banks. Some are even suggesting doling out i.o.u.’s.

Greek leaders said that despite their latest bailout of 130 billion euros, or $161.7 billion, they face a shortfall of 1.7 billion euros because tax revenue and other sources of potential income are drying up. A wrenching recession and harsh budget cuts have left businesses and individuals with less and less to give for taxes — and growing incentive to avoid paying what they owe.


Posted in all posts, Politics |