Tuesday, 13 September 2016

Stocks rebound with Fed divided on rates

Markets rebounded on Monday.

The S&P 500 rose 1.5 percent after Federal Reserve Governor Lael Brainard recommended “prudence in the removal of policy accommodation” in a speech in Chicago.

The STOXX Europe 600 fell 1 percent, cutting an earlier loss of 2 percent.

Earlier, the MSCI Asia Pacific Index fell 1.9 percent.

After the speech by Brainard, the Wall Street Journal concluded that the Fed lacks a strong consensus for action at the coming meeting and is likely to wait until late in the year before raising interest rates.

However, it looks like bankers have had enough of low rates.

“Let’s just raise rates,” JPMorgan Chase Chief Executive Officer Jamie Dimon said on Monday at a discussion at the Economic Club of Washington DC. “You don’t want to be behind the eight ball on this one, and I think it’s time to raise rates.”

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