Fed’s Powell says higher interest rates could hurt economic growth | Wilnesh News

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Nudge to record
this S&P 500 Index and Nasdaq Index slowly move towards Intraday closing price hits record high As Fed Chairman Powell warned of the dangers of keeping interest rates high. Nvidia KeyBanc shares rose 2.48% after the company raised its target price on the artificial intelligence chip maker. apple It closed at a record high for the sixth day in a row. this Dow Jones Industrial Average A loss of 52 points. 10-Year Treasury Bond Yield Ministry of Finance notes Rose That’s despite Powell saying progress has been made on inflation. oil price fall down For the third day in a row.

growth in danger
Powell Warning to keep interest rates high Too long could harm economic growth. He noted that despite the recent cooling, the economy and labor market remain strong. Powell highlighted progress in lowering inflation to meet the central bank’s 2% target. “At the same time, given the progress we have made over the past two years in lowering inflation and cooling the labor market, higher inflation is not the only risk we face,” Powell said in prepared remarks. “Reducing policy restrictions too late or reducing policy restrictions too late may Too little could unduly weaken economic activity and employment.”

Ukraine Aid
President Joe Biden Announcing new commitments strengthen UkraineTargeting Russian air defense in speech marking NATO’s 75th anniversary. “What Putin wants most is the total conquest of Ukraine and the end of democracy in Ukraine,” Biden said. “We know Putin won’t stop in Ukraine. But make no mistake: Ukraine can and will stop Putin, especially in our With full collective support.” This assistance includes new Patriot missile system components from the United States, Germany, Romania, the Netherlands and other countries, and Italy also donated a SAMP-T missile system. More air defense supplies will be distributed in the coming months.

Boeing Slides
shares boeing company Aircraft manufacturers fell 1.4% 44 commercial aircraft delivered in June, which was the highest monthly total of the year, but was down 27% on the year due to legal and production issues. Boeing plans to expand production by the end of the year despite supply chain snags and increased regulatory scrutiny caused by the 737 Max 9 accident. The company agreed to plead guilty to criminal fraud in connection with two 737 Max crashes that put government contracts at risk.

Asia mixed, inflation rising in China
Markets in the Asia-Pacific region were mixed as investors scrutinized economic data. Mainland China’s CSI 300 Index changed little Consumer price inflation rises Producer prices fell below expectations, raising concerns about deflation in the world’s second-largest economy. Hong Kong’s Hang Seng Index Not much has changed, while South Korea Cospi and Australian S&P/ASX 200 Index Refused. Japan exports heavy Nikkei 225 Index Near session high Wholesale inflation accelerates.

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boeing company One must hope that it will eventually turn the page on the security crisis, but Latest data display It faces serious challenges. The company has delivered 175 aircraft so far this year, compared with 323 delivered by European rival Airbus in the first half.

Boeing’s Pleaded guilty to fraud Two fatal 737 Max crashes and $487 million in fines are just a fraction of the $24.78 billion sought by victims’ families and Boeing’s $77.8 billion in 2023 revenue. Victims’ families plan to urge judge to reject deal.

“This sweetheart deal fails to acknowledge that 346 people died as a result of Boeing’s conspiracy,” said Paul Cassell, an attorney for the families. “The deadly consequences of Boeing’s crimes are being covered up.”

boeing company Shares fell 1.4% to $183.24 on Tuesday. The price is up from April’s low of $159.70, but is still down nearly 30% for the year. at the same time, S&P 500 Index The stock ended the year up just a modest 0.07%, notching its 36th record close — a lack of breathtaking gains.

Wall Street’s attention is focused on Powell testifies on Capitol Hill. Powell said that while acknowledging that keeping interest rates too high for a long period of time could jeopardize economic growth, “more good data will increase our confidence that inflation will continue to move toward 2%.”

More inflation data will be released on Thursday, followed by producer price data on Friday. Powell’s comments did not change market expectations that the Fed will cut interest rates in September and again by the end of the year.

However, investors expect Rate cuts boost stocks According to Vital Knowledge’s Adam Crisafulli, there may be disappointment.

“We remain cautious on the S&P 500 as investors are too optimistic about the power of the Fed to cut rates and not focused enough on the weakening economy,” he wrote. “The case for rate cuts starting in September is strong, but modest. “An easing cycle (as the coming cycle is likely to be) will not be enough to immediately halt the slowdown in growth that is currently occurring.”

— CNBC’s Jeff Cox, Brian Evans, Sarah Min, Spencer Kimball, Rebecca Picciotto, Holly Ellyatt, Fred Imbert, Michelle Fox, Todd Haselton, Yun Li, Evelyn Cheng and Lim Hui Jie contributed to this report.