Every weekend, I recap “news you can use” from the week — a handful of quotes from major (and often expensive) news sources — so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
‘Bad news for home buyers’: Mortgage rates rise for third week in a row (Feb. 23, MarketWatch):
“Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market,” Sam Khater, chief economist at Freddie Mac, said in a statement.
But “the current cycle is different [from] historical norms,” he added, “as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”
Goldman Sachs no longer expects U.S. interest rate cut in May (Feb. 22, Reuters):
Goldman Sachs’ analysts no longer expect a U.S. interest rate cut in May and see four 25 basis point cuts this year, as policymakers’ rhetoric suggests they are in no rush.
Federal Reserve Governor Christopher Waller said on Thursday he needed to see a few more months of inflation data to check the economy was on track toward price stability.
Nvidia shares jumped more than 14% in premarket trade on Thursday after the chip giant posted bumper earnings that beat Wall Street estimates.
Nvidia’s Data Center business, which includes the company’s H100 graphics cards that are used for AI training, posted sales of $18.4 billion in the fourth quarter, representing 409% year-on-year growth.
Rate Cuts and Soft Landing Are Coming, Fed Vice Chair Jefferson Predicts (Feb. 22, Barron’s):
“As of our last meeting in January, my colleagues on the FOMC and I believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” Jefferson said.
Amazon to join Dow Jones Industrial Average, reflecting ‘evolving nature of American economy’ (Feb. 21, MarketWatch):
Amazon replaces Walgreens Boots Alliance Inc. in the Dow Jones DJIA. The change was prompted by Walmart Inc.’s 3-to-1 stock split.
“Reflecting the evolving nature of the American economy, this change will increase consumer retail exposure as well as other business areas in the DJIA,” S&P Dow Jones said.
The meeting summary indicated a general sense of optimism that the Fed’s policy moves had succeeded in lowering the rate of inflation, which in mid-2022 hit its highest level in more than 40 years.
However, officials noted that they wanted to see more before starting to ease policy while saying that rate hikes are likely over. Members cited the “risks of moving too quickly” on cuts.
Chinese Banks Slash a Key Lending Rate as Economy Falters (Feb. 20, Wall Street Journal):
The People’s Bank of China said Tuesday that China’s major banks reduced the five-year loan prime rate, a benchmark for home loans, to a new low of 3.95%, from 4.2% previously.
The move was another step in China’s broad campaign to prop up a crumbling housing market and support an economy battling deflation, slowing exports and moribund consumer confidence.
U.S. crude gained 3% last week to settle Friday at its highest price, $79.19 a barrel, since Nov. 6. The global benchmark rose 1.5% for the week to settle at its highest price since Jan. 26.
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I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.