The U.S. ISM services index for January rose to 53.4, exceeding the estimated 52.0 and the previous 50.5, marking the highest level since September 2023. Federal Reserve Chair Jerome Powell indicated that a rate cut may not happen immediately, with a potential delay until after March to ensure sustainable inflation. The strong ISM data and remarks from Powell have led to a surge in U.S. Treasury yields, with markets now pricing a lower likelihood of a rate cut in March. The increase in prices paid, driven by higher shipping costs and commodities, has raised concerns about persistent services inflation in the first half of 2024. Powell's comments on struggling commercial properties have also sparked discussions about potential bank closures or mergers.
Federal Reserve Chair Jerome Powell said in a recent “60 Minutes” interview that some banks will have to close or be “merged out of existence” because commercial properties are struggling. https://t.co/LPqbxD42Rf
1/ January global manufacturing PMI rebounded significantly, driven by the activity components and even more so by the price components, suggesting that the worst of the manufacturing activity is behind us but that the easiest part of the fall in goods inflation is also behind us https://t.co/jDcFF6F7Rl
🌍 via the awesome @WilliamsonChris "Global output growth accelerated for a third straight month in January, according to the S&P Global PMI surveys. Looser financial conditions helped boost financial services activity and consumer spending, while manufacturing was also… https://t.co/8Efoir9GTs https://t.co/6TBlqI5mox
Worth keeping an eye on ISM prices components … services (orange) had much larger spike in January https://t.co/lFuw1jb1yq
Markets now price a 16.5% likelihood of a #FederalReserve rate cut in March. But after better-than-expected ISM numbers, with spiking price indices and strong payroll growth, the Federal Reserve’s conviction to postpone rate cuts has grown. https://t.co/9ar4S70kWn
Markets now price a 16.5% likelihood of a #Federal Reserve rate cut in March. But after better-than-expected ISM numbers, with spiking price indices and strong payroll growth, the #FederalReserve’s conviction to postpone rate cuts has grown. https://t.co/MZUueMPoWM
Federal Reserve Chairman Powell said that the interest rate cuts may wait until after March to ensure that inflation can sustainably achieve its 2% target. It is expected to cut interest rates three times this year, and the rate of interest rate cuts may be much slower than…
ISM Services beat expectations in Jan with a 2.9ppts m/m gain to 53.4 - its highest reading since Aug 2023. The price index jumped on a mix of weather as well as supply and demand factors. If sustained, the increase will raise the risk of stubborn services inflation in H1 2024. https://t.co/9XcAYykjr8
OUCH! US 10y yields jump to 4.16% on another strong economic data point in the ISM Services read (index hit 4th high while prices picked up) + remarks from Fed’s Powell suggesting that rate cuts may not come until the “middle of the year” during last episode of 60 Minutes. https://t.co/ompI2fYkfb
US Treasury yields surged on strong ISM services data and signals from Fed policymakers that a March rate cut is a long shot https://t.co/SrYFtAtqGO
Federal Reserve officials are debating when to lower rates. In an interview, the Fed's chair Jerome H. Powell confirmed a move is coming, but not immediately. https://t.co/VoIscd7d6u
The January ISM services data was surprisingly strong across the board, with prices paid surging the most for a month since August 2012. ISM said the recent bump in inflation has been driven by higher shipping costs and increases in commodities and services prices. https://t.co/EcZjF45NSR
A voiceover during Chair Powell's latest 60 Minutes interview suggested that the Fed chair had suggested "the likely time for the first interest rate cut would be the middle of the year." I checked with 60 Minutes: The transcript they released reflects the full interview.
The U.S. economy seems to have perked up early in the new year as looming interest-rate cuts fuel optimism. ISM services survey rebounds in January. https://t.co/2qBvdcGIov https://t.co/vypLprxOym
ISM's manufacturing and services gauge both soared in January That's a good sign for the economy & battered cyclical stocks https://t.co/z2AQrKlS8t
The Federal Reserve probably won’t cut interest rates as soon as next month and the central bank continues to view a modest reduction in rates as the most likely scenario for 2024, Fed chief Jerome Powell said Sunday. https://t.co/QWXN2eQ7CY
Commercial real estate a 'manageable' problem but some banks will close: Powell https://t.co/Q0KamNebg3? @YahooFinance Really? What is Powell doing? Totally irresponsible public comments by @federalreserve official.
Commercial real estate a 'manageable' problem but some banks will close: Powell https://t.co/4wpUzXWvrB by @DsHollers
⚠️BREAKING: *U.S. JANUARY ISM SERVICES INDEX RISES TO 53.4; EST. 52.0; PREV. 50.5 *HIGHEST SINCE SEPTEMBER 2023 🇺🇸 🇺🇸 https://t.co/geodfzJDdF