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BOJ won’t rule out deeper negative rates to combat pandemic hit: deputy governor Amamiya

By hafiz cakep 20 hours ago

By Leika Kihara

a man wearing a suit and tie: Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo

© Reuters/ISSEI KATO
Bank of Japan Deputy Governor Masayoshi Amamiya speaks during a Reuters Newsmaker event in Tokyo

TOKYO (Reuters) – Bank of Japan Deputy Governor Masayoshi Amamiya said the central bank will not rule out deepening negative interest rates as part of efforts to cushion the economic blow from the coronavirus pandemic.

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But he said the BOJ must be vigilant to the cost of any such steps, warning that excessively low rates could hurt financial institutions’ profits and discourage them from lending.

“When considering additional easing steps, we must be mindful than ever before of their potential side-effects,” Amamiya told a news conference on Wednesday.

“Having said that, we have various options available including deeper negative rates,” he added. “We won’t rule out the chance of taking rates deeper into minus territory.”

Despite years of heavy money printing, central banks in Japan, the United

Money

Euro zone economy not yet out of danger from coronavirus: ECB’s Panetta

By hafiz cakep 2 days ago

BERLIN (Reuters) – The danger to the euro zone economy from the coronavirus pandemic is not yet over, European Central Bank board member Fabio Panetta told La Repubblica, adding that he saw no need to make any tweaks to the bank’s massive asset purchase programme.

a man wearing a suit and tie: Mario Draghi receives the Order of Merit of the Federal Republic of Germany in Berlin

© Reuters/ANNEGRET HILSE
Mario Draghi receives the Order of Merit of the Federal Republic of Germany in Berlin

Tackling the biggest economic collapse in living memory, the ECB is buying debt through a 1.35 trillion euro ($1.58 trillion) Pandemic Emergency Purchase Programme (PEPP) and paying banks to lend out its cash as it tries to protect the bloc’s economy from the coronavirus fallout.

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“It’s too soon to declare victory,” Panetta said in the interview circulated by the ECB on Monday, adding that the euro zone economy was likely to see a bigger contraction in the second quarter than in the first three months

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US STOCKS-Wall St adds to gains after Fed vows more support to U.S. economy

By hafiz cakep 3 days ago

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window)

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* Fed leaves rates unchanged, promised more support

* Starbucks sees business ‘steadily recovering’, shares up

* Boeing falls after bigger-than-expected loss

* Advanced Micro Devices surges after revenue forecast raise

* Indexes up: Dow 0.4%, S&P 1.02%, Nasdaq 1.2% (New throughout, updates prices, market activity and comments to late afternoon; new byline, adds NEW YORK dateline)

By Sinéad Carew

New York, July 29 (Reuters) – U.S. stocks added to gains on Wednesday after the U.S. Federal Reserve repeated a pledge to use its “full range of tools” to support the economy for as long as it takes to recover from fallout of the pandemic.

At the end of its two-day policy meeting the Fed said it maintained its interest rate target range until it is confident the economy has weathered

Money

Trump vs. Biden: Where they stand on health, economy, more

By hafiz cakep 4 days ago

FILE - In this July 29, 2020, file photo President Donald Trump arrives to deliver remarks about American energy production during a visit to the Double Eagle Energy Oil Rig in Midland, Texas. Trump, like many fellow Republicans, holds out tax reductions and regulatory cuts as economic cure-alls and frames himself as a conservative champion in seemingly endless culture wars. But the president, still trying to fashion himself as an outsider, offers little detail about how he’d pull the levers of government in a second term. — FILE – In this July 29, 2020, file photo President Donald Trump arrives to deliver remarks about American energy production during a visit to the Double Eagle Energy Oil Rig in Midland, Texas. Trump, like many fellow Republicans, holds out tax reductions and regulatory cuts as economic cure-alls and frames himself as a conservative champion in seemingly endless culture wars. But the president, still trying to fashion himself as an outsider, offers little detail about how he’d pull the levers of government in a second term.

Evan Vucci

AP

WASHINGTON

President Donald Trump and his Democratic challenger, Joe Biden, both promise sweeping progress over the next four years –- via starkly different paths.

Trump, like many fellow Republicans, holds out tax reductions and regulatory cuts as economic cure-alls and frames himself as a conservative champion in seemingly endless culture wars. But the president, still trying to fashion himself as an

Money

Rebounding from recession could prove tougher in months ahead

By hafiz cakep 5 days ago

After suffering the steepest and fastest recession in history amid the COVID-19 pandemic, the U.S. economy began to recover in May and June at a more robust pace than most analysts expected.

a close up of a logo: 6_charts_econ

© Javier Zarracina
6_charts_econ

Economists largely credit trillions of dollars in federal aid that kept consumers spending, including $1,200 stimulus checks, generous unemployment benefits, and forgivable federal loans to small businesses that retained or rehired employees.

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But clawing back the rest of the lost ground is likely to be a tougher slog. The federal programs are expiring unless Congress quickly votes to extend them in some form. Some companies, particularly in travel and retail, are laying off workers permanently. And amid spikes in coronavirus cases across much of the country, many states are at least partly shutting down businesses that had reopened.

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Coronavirus Economy: What We Know About The GOP Stimulus Package

By hafiz cakep 6 days ago

$600 unemployment checks are about to stop. Congressional Republicans have put forward a stimulus plan. We’ll dig into the details.

Guests

Claudia Sahm, director of macroeconomic policy at the Washington Center for Equitable Growth. (@Claudia_Sahm)

Kenneth Rogoff, professor of economics and public policy at Harvard University. Co-author of “This Time Is Different.” (@krogoff)

Heather Caygle, Politico reporter covering Congress. (@heatherscope)

From The Reading List

Politico: “‘It’s a mess’: Republican senators deride key proposals in GOP virus package” — “he jockeying on Capitol Hill underscores how far apart both parties remain — and the treacherous path Senate Majority Leader Mitch McConnell faces as he confronts internal GOP divisions and kicks off negotiations with Democrats.”

Washington Post: “Coronavirus relief talks hit impasse on Capitol Hill” — “Negotiations on a new coronavirus relief bill hit an impasse on Capitol Hill on Wednesday,

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U.S. GDP likely sank a record 35% in the 2nd quarter after coronavirus ravaged the economy

By hafiz cakep 7 days ago

ECONOMIC REPORT

a woman holding a sign: People walk by a closed business in the Brooklyn borough of New York City. The U.S. economy is expected to show a record decline in growth in the second quarter due to the coronavirus.

© Getty Images
People walk by a closed business in the Brooklyn borough of New York City. The U.S. economy is expected to show a record decline in growth in the second quarter due to the coronavirus.

The U.S. suffered the biggest economic decline in the second quarter since the government began keeping track after World War Two. How much? Try 30% — or more.

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Economists polled by MarketWatch estimate gross domestic product — the official scorecard for the U.S. economy — contracted by a record 34.6% annual pace from the start of April to the end of June.

Before the coronavirus pandemic, the largest drop in GDP on record was 10% in 1958. The government’s quarterly GDP figures go back to 1947.

The steepest quarterly drop during the 2007-2009 Great Recession was 8.4%.

Here is what to watch in the second-quarter GDP report when published

Money

With the economy tanking, more people seeking unclaimed cash

By hafiz cakep 1 week ago

TALLAHASSEE, Fla. (AP) — Florida is seeing a surge in people making claims for unclaimed property since the coronavirus pandemic has shaken up the state’s economy, but apparently President Donald Trump hasn’t made an effort to have money returned to him.

Florida Chief Financial Officer Jimmy Patronis said in a telephone interview that the state is setting records for the amount of money being returned to people since the pandemic began.

“We pushed out over $38 million just in the month of March. That’s the second highest month in the history of the program,” Patronis said. “Just during the COVID-19 pandemic time, we’ve pushed out almost $124 million. That’s $124 million that’s going back into the economy. That’s money that’s not sitting in our accounts anymore.”

There are millions of accounts with unclaimed property. It could be a savings account someone forgot about, a car insurance refund, inheritances and more.

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Congress Has Many Ways To Boost The Economy By Getting Cash Into People’s Pockets. Which One Is Best?

By hafiz cakep 2 weeks ago

Workers Caravan In Florida Calls On US Senate To Extend Unemployment Benefits — MIAMI SPRINGS, FLORIDA – JULY 16: Carlos Ponce joins other demonstrators participating in a protest … [+] to support the continuation of unemployment benefits. (Photo by Joe Raedle/Getty Images)

Getty Images

As Congress scrambles to pass another COVID-19 relief bill, it must decide how best to put money into the hands of people who are suffering from the economic fallout of the pandemic. The three leading choices appear to be: extending enhanced federal unemployment benefits, expanding refundable tax credits, or another round of direct economic impact payments. A fourth idea, President Trump’s plan for a payroll tax holiday, appears dead. But which is best?

Unemployment benefits. In theory, continuing enhanced jobless benefits is a strong choice. It targets aid to those who need it most—people who lost their jobs. But in practice, distributing money through the unemployment system has problems.

The CARES Act included a temporary $600 per week boost

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Columbus utility giant American Electric Power funded dark money spending in HB 6 campaign

By hafiz cakep 2 weeks ago

American Electric Power maintains its headquarters in Downtown Columbus. (Photo: Fred Squillante/Columbus Dispatch)

A dark money group wholly funded by House Bill 6 beneficiary and Columbus utility giant American Electric Power contributed $350,000 toward the campaigns now at the center of a racketeering and bribery case that ensnared House Speaker Larry Householder, an investigation by The Dispatch finds.

Empowering Ohio’s Economy Inc., a nonprofit operated solely with AEP funds, gave $150,000 to Generation Now, another dark money group that received $60 million from FirstEnergy-related interests to ensure passage and survival of a $1 billion ratepayer bailout of a subsidiary’s pair of nuclear power plants.

Empowering Ohio also gave $200,000 to the Coalition for Opportunity & Growth, which is related to a similarly named political action committee that donated $1 million to the 2018 campaigns of Householder-favored Republican candidates to help ensure that he had their votes to become speaker.

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