Central banks are resorting to negative interest rates to stimulate growth — Fed Chair Janet Yellen is considering them — but they are not as effective as investors had hoped.
January updates on global factory activity show the new year began much as the old one ended, with too much capacity chasing too little demand. Sonia Legg reports.
Since it’s the only major central bank hiking rates, the Federal Reserve has to contend with a stronger U.S. dollar. That could slow its efforts to end years of cheap money.
The slowdown in January was attributed to uncertainty due to the volatile stock market, according to a survey of purchasing managers.
The European Central Bank may “reconsider” monetary policy as early as March, its president said.
The U.S. benchmark crude briefly touched $30 a barrel Thursday after markets rallied and stockpiles climbed.
Plunging oil prices and turmoil in global markets is pushing the European Central Bank to review its monetary policy stance in March, ECB chief Mario Draghi said.
The ECB had not been expected to expand its quantitative easing program Thursday, despite low oil prices.
Stimulus measures have had little effect on the bloc's near-zero inflation rate as crude oil has hit its lowest annual average price in 11 years.
The U.S. reported 211,000 new non-farm jobs in November, and revised October new jobs data upward to 298,000.
Many investors expected Mario Draghi's European Central Bank to increase bond purchases and cut interest rates more.
The euro jumped in the wake of the European Central Bank's decision to cut interest rates. President Mario Draghi implored eurozone countries to do more to boost the economy.
The European Central Bank is expected to further announce measures, including an expansion of its massive bond-buying program, at a meeting Thursday.
Inflation in the 19-nation bloc stood at a weaker-than-expected 0.1 percent, building pressure on the European Central Bank to ease its monetary policy.
Amid speculation the European Central Bank may announce more stimulus measures this week, the currency neared its biggest monthly decline against the dollar.
“At this point, I see the U.S. economy as performing well,” said Janet Yellen, head of the Federal Reserve.