WASHINGTON: Fed minutes: Officials said prudent to wait for more data, Brexit vote before raising rates – CNBC – @AceFinanceNews

Janet Yellen, chair of the U.S. Federal Reserve.

#AceFinanceNews – July.06: Federal Reserve policymakers decided in June that interest rate hikes should stay on hold until they have a handle on the consequences of Britain’s vote on EU membership, according to the minutes from the Fed’s June policy meeting released on Wednesday.

The minutes for the June 14-15 meeting, which took place ahead of the June 23 referendum in which Britons voted to leave the European Union, showed widespread unease over the so-called “Brexit” vote, including among voting members on the rate-setting Federal Open Market Committee.

“Members generally agreed that, before assessing whether another step in removing monetary accommodation was warranted, it was prudent to wait for additional data on the consequences of the U.K. vote,” according to the minutes.

Policymakers also cited a severe slowdown in hiring by U.S. employers as a reason for leaving interest rates steady last month, the minutes showed.

The Brexit vote, which shocked investors and politicians, has raised anxiety in financial markets and policymaking circles around the world, in part because it could take years before Britain and the EU agree to new rules on finance, trade and immigration.

Already, global financial conditions have tightened, with a firming of the U.S. dollar poised to weigh on U.S. exporters.

Before the vote, the Fed had signaled two interest rate hikes would likely be needed this year to keep the U.S. economy from eventually overheating. But since the British referendum, several Fed policymakers have said the uncertainty warrants a cautious approach.

In the minutes of the June meeting, many Fed policymakers who participated in the policy discussion stressed the sharpness of the hiring slowdown could be statistical noise, and most argued the economy would be ready for rate increases unless a financial or economic shock knocks America off course, according to the minutes.

Seventeen policymakers participated in the policy discussion, with 10 of them having a vote on the rate-setting committee.

At its June meeting, the Federal Open Market Committee decided to leave interest rates unchanged and lowered its expectations for future years. At the April meeting, just one member indicated that the year would end with only one rate hike, but that number jumped to six at the June session.

Fed minutes: Officials said prudent to wait for more data, Brexit vote before raising rates …

CNBC.com

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MARKETS: UK government bond yields hit new record low as investors continue to buy sovereign debt following Britain’s vote to leave the EU – Yahoo – @AceFinanceNews

#AceFinanceNews – July.06: UK government bond yields hit new record low as investors continue to buy sovereign debt following Britain’s vote to leave the EU – Yahoo

http://yhoo.it/29iBBzv

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MARKETS: 30-year bond yields hit new record low amid global rally in safe-haven assets – CNBC as investors leave long term for secure return – @AceFinanceNews

#AceFinanceNews – July.06: Thirty year bond yields hit new record low amid global rally in safe-haven assets – CNBC

http://cnb.cx/29nDyeP

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BRITAIN: 4th firm, Henderson Global Investors, suspends trading UK property funds after #Brexit – Reuters – It was OK when they were making a fortune but now the tables are being turned and people want their money back – @AceFinanceNews

#AceFinanceNews – July.06: Fourth firm, Henderson Global Investors, suspends trading UK property funds after #Brexit – Reuters

http://yhoo.it/29xMzWb

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SWEDEN: Central bank postpone rate rises following #Brexit; there’s considerable uncertainty over economic development Riksbank representatives said – Telegraph – @AceFinanceNews

#AceFinanceNews – July.06: Swedish central bank postpone rate rises following Brexit; there’s considerable uncertainty over economic developments abroad that have increased following Brexit, Riksbank representatives said – Telegraph

http://bit.ly/29pEGjI

Editors Notes:

I would remind you that this blog is produced free for the public good and you are welcome to republish or re-use this article or any other material freely anywhere without requesting further permission.

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MARKETS: React to Standard Life and Aviva stopping investors removing their own money from their investments – @AceFinanceNews

#AceFinanceNews – July.06: Sterling falls to new low against the dollar in Asia trade_90301651_gettyimages-73903798.jpgThe pound falls to a new low in Asian trading as concerns about the UK’s vote to leave the European Union weigh on investor confidence.

It touched 1.2798 against the dollar on Wednesday, a 31-year low, before recovering slightly to $1.2929.

The pound has now fallen about 14% against the dollar since hitting $1.50 ahead of the referendum result.

US government bond yields also fell to record lows as investors rushed to put money in perceived havens.

The falls follow decisions by fund managers, including Standard Life and Aviva, to stop investors withdrawing money from their UK property funds.

Editors Notes:

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