U.S. Treasury Secretary Janet Yellen speaks to reporters in Washington, on April 11.YURI GRIPAS/The New York Times News Service
The U.S. economy is strong amid robust consumer spending but some areas are slowing down, U.S. Treasury Secretary Janet Yellen said on Wednesday, adding that she expects continued progress in bringing inflation down over the next two years.
Yellen, in an CNBC interview, also said that, while banks may struggle with commercial real estate and face some consolidation, there is ample liquidity in the system and that banks should generally be able to withstand any strain.
Yellen said that legislation to lift the debt ceiling and reduce U.S. deficits by more than $1-trillion over a decade would support the Federal Reserve’s efforts to bring down inflation.
Asked about the Richmond Federal Reserve President Jeffrey Lacker’s view that the federal funds rate, at 5.0-5.25 per cent now, will have to rise to 6 per cent to tame inflation, Yellen said that was a decision for the Fed.
“Consumer spending has continued to grow in a pretty robust way, but you’re also seeing areas of the economy that are slowing down,” Yellen said. “And this is a judgment that my former colleagues at the Fed are very capable of making. As I said, I think what’s important is to try to bring inflation down. That’s a top priority.”
She said that banks would face some difficulties related to commercial real estate because of higher interest rates and remote work arrangements that have reduced demand for office space, but stress tests have shown that banks have adequate capital, and banking supervisors are looking closely at the situation.
“My overall read is that the level of capital and liquidity in the banking system is strong and while there will be some pain associated with this, that banks should be able to handle the strain,” she said.
Asked whether she would support more consolidation among banks, she said the current diverse banking system with strong community banks, regional banks and large banks was a “strength” for the U.S. economy, but some further consolidation was likely.
Yellen said she would not want to see U.S. banking diversity threatened, “but certainly in this environment, some banks are experiencing pressure on earnings and there is a motivation to see some consolidation. And it wouldn’t surprise me to see some of that going forward.”
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
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