Powell Wants ‘Real Economy’ to Guide Fed [Bloomberg]
Federal Reserve Chairman Jerome Powell is testing the economy’s room to run. It’s a strategy that contains both big benefits and risks for ordinary Americans and is causing excitement, tinged with caution, inside the central bank.
Take Fed treatment of one of its bedrock conceptual benchmarks, a rate of unemployment that keeps inflation stable. In June, they estimated that level at 4.5 percent. Unemployment in May was 3.8 percent. Yet with no sign of price pressures, policy makers plan to let the labor market run even hotter, with the jobless rate projected at 3.5 percent over the next two years.
GIG was originally the Green Investment Bank, created by the UK government in 2012 as the world’s first bank dedicated to supporting green infrastructure schemes. It was sold to Macquarie Group (MQG.AX) in 2017 for 2.3 billion pounds ($3.02 billion).
Having expanded into Europe and, most recently, Asia, GIG will now operate in the United States and Canada, aiming to finance the development of renewable energy schemes, as well as structuring numerous smaller projects into larger investments that can be sold to institutional investors.
Heitkamp, Donnelly, and McCaskill are in races that are considered toss-ups by Larry Sabato’s Crystal Ball, while Baldwin and Tester are in states marked as leaning Democrat.
The bill failed to pass through the Senate by 50 to 48.
“The failure to cut less than a half a cent from every federal dollar spent is indicative of a rampant overspending problem that unfortunately often has bipartisan support, Americans for Prosperity spokesman Bill Riggs said in a statement. “If these senators couldn’t even bring themselves to cut a sliver of unspent or expired funds, how can anyone expect them to take on our larger fiscal challenges?”
Oil prices have jumped amid signs of falling global supply. This week’s move higher in crude comes after an Organization of the Petroleum Exporting Countries’ agreement on Friday to increase global production by an amount below what many expected. The decision sent oil prices surging, up 6.1% over four days. Harsh rhetoric from the Trump administration on Iran sanctions and a surprising drop in U.S. crude inventories this week also lifted prices, while production from Venezuela has been plummeting for months as the country sinks deeper into economic turmoil.
CBS News went to see California's red-hot housing market with realtor Larry Gallegos. He showed us a house you would think he couldn't give away. But Gallegos says the home, complete with leaks in the roof, sold for $1.23 million. The buyer beat out six competing offers, all above the asking price.