Economic News

Oil prices have fallen after markets were encouraged by Iran's initial reaction to international proposals to halt its nuclear programme. A rise in US fuel stockpiles also helped to ease worries over supplies. US light crude fell $1.68 to $70.82 a barrel, while London Brent crude fell $1.62 to $69.19 a barrel. Iran's chief nuclear negotiator said a package of incentives aimed at ending its stand-off with the international community contained "positive steps". Tension over Iran's nuclear pl ...

NEW YORK (Market Watch) -- The dollar was higher Wednesday afternoon, continuing to benefit from a growing consensus that the Federal Reserve will continue lifting rates to fight inflation and hopes for improved relations between Iran and world powers seeking to hold nuclear diplomacy talks. The dollar was 0.3% higher at 113.46 yen, after earlier striking a fresh one- month high, and the euro 0 ...

Eurozone finance ministers on Wednesday pleaded with the European Central Bank to keep any interest rate rise to a minimum when it meets on Thursday, amid fears that a sharp increase could force the euro higher against the dollar and hit exporters. // Some ministers at an Ecofin council in Luxembourg claimed the euro was perilously close to the point where it could harm the economic recovery. Peer Steinbrück, German finance minister, urged the ECB to be “cautious”. But finance ministers have t ...

US Treasuries fell and yields rose on Wednesday as investors continued to dwell on expectations of further interest rate rises and the shape of the yield curve. // With little in the way of fresh news to direct the market, traders said the drift lower was natural as investors looked to the Federal Reserve’s meeting later this month. Trade slowed too as investors waited for any signs of a move in the shape of the yield curve. On Tuesday, two- and 10-year yields had briefly inverted for the firs ...

NEW YORK (Market Watch) - The dollar made more headway against its major rivals in the early going Wednesday, benefiting from a growing consensus that the Federal Reserve will continue lifting rates to fight inflation and hopes for a break in the diplomatic impasse between Iran and other nations. Higher rates attract investors to the dollar, protecting it against its major rivals. In recent  ...

WASHINGTON (Dow Jones) -- Inflation risks are now elevated, even though there are fresh signs that the U.S. economy is slowing, said Jack Guynn, the president of the Atlanta Fed bank on Wednesday. "Headline measures of inflation of late have been bothersome, with higher oil prices contributing too much of the run-up in those broad readings," Guynn said in remarks prepared for delivery to a busi ...

Treasury prices remained under pressure early Wednesday, sending yields higher, as investors continued to react to recent hawkish comments from Federal Reserve officials about U.S. interest rates. With little major economic data to lend direction to the price action, investors awaited speeches from Fed officials for signs about the central bank's leanings on future monetary policy. Atlanta Fed  ...

By Christopher Swann and Krishna Guha in WashingtonPublished: June 6 2006 20:16 | Last updated: June 6 2006 23:42Susan Bies, a Federal Reserve board governor, yesterday joined a chorus of central bank officials expressing concern over rising inflationary pressures, as financial markets braced for a further increase in interest rates. // “We’re in a period of transition and transition means we do ...

WASHINGTON (Dow Jones) -- Although core inflation in the U.S. has ticked higher, it should "taper off" later this year as economic growth slows down, the head of the Kansas City Federal Reserve Bank said Tuesday. "As the economy moves back towards its long run potential (growth rate) of 3.25%-3.5% ... then I think inflation will taper off as well," Thomas Hoenig said in a speech to a business g ...

US Treasuries were mixed on Tuesday and the yield curve flirted with its first inversion since March as the threat of more short-term interest rate increases conspired with signs of slowing economic growth. // Ben Bernanke’s remarks on Monday continued to resonate in the market. The Federal Reserve chairman expressed unease with the current level of inflation, suggesting the Fed could lift rates again later this month to fight price rises in spite of moderating growth. Fed funds futures fell,  ...