Billion from 60 billion. Pretty aggressive reduction there. That begins in june. A way to think about this, if my numbers are right, is a runoff that had been going at 720 billion a year of treasuries, by the way, down to 300 billion. It left the runoff of Mortgage Backed securities the same t 25 billion. That q2 goes from 60 to 25 on treasuries and begins in june. That is a cap on the reduction. On the economy, the Federal Reserve says continues to say the economy is increasing at a solid pace. It says job gains have emained strong. Inflation has eased but again noted that progress has stalled. Im going to repeat some statements that they repeated this time around but maybe now they are perhaps more important. It could be said the committee is strongly committed to bringing inflation to 2 . They are highly attentive to the inflation risk and preparing to adjust policy is appropriate if risks emerge. Does have been in the statement for a long time and maybe now they are a little more i
Edward. Reporter Federal Reserve has left rates unchanged. This is the sixth pause in a row for this. Now with the first line of the statement has a word thats been added to it. It says the Economic Activity continued to expand at a solid pace. Now the statement says that the fed sees job gains remaining strong. The fed also sees inflation easing over the past year but remaining elevated. The Committee Also changed the statement to say that employment and inflation goals have moved into better balance over the past year. The fed leaves one sentence in. Its a very key sentence, saying it needs to gain greater confidence that inflation will move sustainably to 2 . Again a very key phrase in the statement. One big announcement of the fed statement is going to make, the fed is reducing runoff of the Balance Sheet. Starting in june the fed will go from 60 billion of runoff in treasurys, rolling off 25 billion. Going down to 25 billion in treasurys, rolling off starting in june, amount of mo
Plus, the season of strikes set to grow even larger. Today, with more than 75,000 Kaiser Permanente workers possibly walking off the job. And then later, we have a rare downgrade for apple, like key bank says, it is taking a fresh look at the stock. It is wednesday, october 4th, 2023. Youre watching Worldwide Exchange right here on cnbc. Good morning. Welcome to Worldwide Exchange. Im frank holland. Lets get you ready to start your day. We kick off the hour with the checks on u. S. Stock futures. In the red across the board. The dow looks like it would open up 30 points lower right now. This after the dow posted its worst day since march, falling nearly 1. 3 . Similar story for the nasdaq and the s p 500. Both of them closing down. 1. 8 and 1. 3 respectively on the day. We also want to look at the russel 2000, negative for the year and seen as a leading indicator of a possible u. S. Recession. You see the move this is dow transports. Dow transports dipped below the 200 Day Moving Avera
5 on a 30year yield briefly. Very close to 4. 90 on the 10year yield. Tom mathematics is important and we do not do methods early in the morning. From a careful analysis to looking a vector down freefall. Something changed yesterday and mathematics went out the window. This is a warning of price analysis and fixed income. Not to be inflammatory but it borders on freefall. Jonathan our price has been hammered, particularly over the last few months. 4. 8146 on a 10 year maturity. Lisa a what is the Circuit Breaker . It is not coming from washington, d. C. This not look like there will be a resolution without leadership. Job openings are coming out stronger than expected and manufacturers are also better than good. What point do you get a Circuit Breaker from something other than people who start to buy . Jonathan over on a speaker liz house, he had to say, this is wholly consistent with the broader structural concerns regarding American Local dysfunction and the countrys trajectory. Thos
Th aussie dollar bond market remain unfazed, as the rba keeps rates unchanged, but warns further tightening may be required. In asia, stocks selling off. Bonds under pressure. Cleveland fed president Loretta Mesters has one more hike maybe in the cards this year. Jamie dimon warning the u. S. 10year could go much higher than expected. Can it go to 7 . The answer is yes. Are there factors that would drive it higher than where it is today, yes. Is supply and demand kaput . Yes. Kriti bank of england takes aim at the central bank forecast, predicting permanently higher Interest Rates in the u. K. Lets get right to the data because you will see action coming across futures. The theme of the day around the world seems to be a more hawkish tone for Central Banks. Do the markets believe it is the major question. Take a look at this a lot already underway in the futures market. A lot of this will be impacted by sentiment in asia. Euro stoxx 50 futures down 0. 8 , ftse 100 futures outperforming