U.S. stocks finish the week slightly higher

The giant Euro symbol stands illuminated outside the headquarters of the European Central Bank
The giant Euro symbol stands illuminated outside the headquarters of the European Central Bank
Author

26 August, 2017

The Federal Reserve chair said in a speech at Jackson Hole, Wyoming, that the reforms have made the system "substantially safer" and are not weighing on growth or lending.

U.S. stocks have been choppy this week amid caution ahead of Jackson Hole and uncertainty over the direction of Washington policy under President Donald Trump.

US stocks got off to a strong start after President Donald Trump's chief economic adviser Gary Cohn said the White House would turn its attention to the long-awaited tax reform agenda next week. Yellen's four-year term ends in February, and President Trump has said he is considering a replacement.

Yellen's forceful support for financial regulation may complicate her prospects for renomination as Fed chair.

"The Fed chair's speech was mum on monetary policy, which hurt the dollar by keeping uncertainty high about whether the central bank would boost interest rates again this year", said Joe Manimbo, senior market analyst at Western Union Business Solutions.

While Yellen did not dwell heavily on monetary policy during her speech at the Jackson Hole conference, she did offer a defence of post-financial crisis bank regulations.

Some saw Yellen's forceful defense Friday of the regulatory structure imposed on banks since the 2008 crisis as further lessening the likelihood that Trump will reappoint her.

Cohn, who is Jewish, told the Financial Times in an interview that he was disturbed by the events in Charlottesville and disappointed with the response of the president, who appeared to equate neo-Nazis and white supremacists with counterprotesters.

Yellen also warned that policymakers should not ignore the lessons from the recent financial crisis in 2008 that hit the USA economy and households hard, as "we can never be sure that new crises will not occur". The ECB is expected to take up the issue next month.

Yellen said large banks have shifted to a more stable mix of financing. Memories of the last crisis "may be fading", she warned.

The Federal Reserve is looking at changes to ease regulations for smaller banks, she said. She also suggested that the so-called Volcker Rule, which limits the ability of banks to trade their own investments, might need to be modified. "The bond market is rallying with at least some people thinking (Yellen) would make the case for more rate hikes to take some steam out of the stock market", said Chris Low, chief economist at FTN Financial in NY.

She added: "A resilient financial system is critical to a dynamic global economy".

Trump has already nominated a new Fed vice-chair of financial supervision, Randal Quarles, who has signalled an appetite to lessen the burden of regulation.


More news


  • School supply giveaway, church anniversary among upcoming faith-based events

    School supply giveaway, church anniversary among upcoming faith-based events

    Wiggins, Officers and Members of Callands Missionary Baptist Church will celebrate the board of usher's 87th anniversary at 3 p.m. David Hardage, executive director of the Baptist General Convention of Texas, is the scheduled speaker for the 11 a.m. service.
    Rob Gronkowski Has Pretty Thoughtful Take On Racial Tensions In US

    Rob Gronkowski Has Pretty Thoughtful Take On Racial Tensions In US

    However, Allen recently voiced that he was having some difficulty in learning the ins and out of the Patriots' offensive scheme. For help with that, Allen has looked to Gronkowski, whom he called "one of the hardest-working men in this organization".

    Revenue Approximations Analysis: Lumentum Holdings Inc. (LITE), Level 3 Communications, Inc. (LVLT)

    It tells an investor how quickly a company is increasing its revenues. 39,882 are owned by Mason Street Advsrs Ltd Liability Corp. It is positive, as 67 investors sold VFC shares while 260 reduced holdings. 156 funds opened positions while 618 raised stakes.
  • Teen Says She Livestreamed Little Sister's Death To Pay For Funeral

    Teen Says She Livestreamed Little Sister's Death To Pay For Funeral

    She panned to the body of her sister, who was lying in the grassy field and appeared to have suffered major head trauma. In a phone interview from jail last week, Sanchez admitted she's live streamed while driving many times.
    Tropical storm heads towards Central Luzon

    Tropical storm heads towards Central Luzon

    Even as Jolina exits the Luzon landmass on Saturday morning, disaster managers warned the public about prevailing hazards. It added that estimated rainfall amount is from moderate to heavy within the 300 km diameter of the Tropical Depression.

    Does $2.29 justifies Nevsun Resources Ltd. (NSU) shares?

    The stock has "Mkt Perform" rating by Raymond James on Friday, December 4. (NSU) ended its last session at $2.29 by Surging 8.02%. Five equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company.
  • IWF Member Makes Headlines Working to Preserve Legacy of the Girls Scouts

    Since their founding, Hopinkah Hannan says the two organizations "have worked in a respectful and complimentary manner". Last spring reports began to emerge that the Boy Scouts had opened the door to the idea of bringing in girls.

    Vanguard Group Inc Raises Its Investment in Mohawk Industries, Inc. (MHK)

    The Company' divisions include Global Ceramic, Flooring North America and Flooring Rest of the World (Flooring ROW). The company was maintained on Wednesday, July 26 by Boenning & Scattergood. (NYSE:MHK) opened at 246.91 on Tuesday.

    EPS for Bank of Nova Scotia (BNS) Expected At $1.22

    The corporation has a valuation of $73.72 B, a price to earnings ratio of 12.38 along with a stock beta of 1.26. Shares of Bank of Nova Scotia (NYSE:BNS) traded up 0.45% during mid-day trading on Thursday, hitting $61.88.
  • Hunt JB Transport Services Inc (NASDAQ:JBHT) Institutional Investor Sentiment Trend

    Moreover, Elk Creek Prns Limited Liability has 0.02% invested in J B Hunt Transport Services Inc (NASDAQ: JBHT ) for 2,469 shares. The Firm operates through four divisions: UK & Ireland, Nordics, Southern Europe and Connected World Services (CWS).

    Checking the Overall Picture for Pepsico, Inc. (PEP)

    Renaissance Techs Limited Company invested 0% of its portfolio in Deluxe Corporation (NYSE:DLX). (NYSE:PEP) on Wednesday, March 1. It increased, as 68 investors sold PEP shares while 674 reduced holdings. 32 funds opened positions while 109 raised stakes.
    Arsenal transfer report: Gunners defender Shkodran Mustafi on Juventus' radar

    Arsenal transfer report: Gunners defender Shkodran Mustafi on Juventus' radar

    Mustafi, a 25-year-old German global , only arrived at Arsenal last summer from Spanish outfit Valencia. Mustafi has spent just one season at Arsenal following a £34million move from Valencia in 2016.