Fed sees no 2019 rate hikes, plans September end to asset drawdown

Federal Reserve officials scaled back their projected interest-rate increases this year to zero and said they would end the drawdown of the central bank’s bond holdings in September after holding policy steady on Wednesday. The median rate projection of Fed officials compared with two hikes in the December forecasts, which spooked investors at the time. In its statement following a two-day meeting in Washington, the Federal Open Market Committee repeated January language that it will be “patient” amid “global economic and financial developments and muted inflation pressures.” The Fed’s signal…

Indra Nooyi: ‘I’m Not Here to Tell You What to Eat’

When did you start thinking about the need for Pepsi to be more than a soda and snacks company? The first recognition came, I think, in 2000, when I was head of strategy. The marketplace was changing. It was changing slowly, but we had to make some moves before it changed too fast. We could see articles on health and wellness were picking up speed. We bought Quaker Oats in 2000 because we had no food brand that could play in the morning. It was also clear that beverage habits…

Boeing’s 737 Max could hit US GDP if production is halted: JP Morgan

Mike Kane | Bloomberg | Getty Images Crewman tow in a Boeing Co. Max 737 jet after landing at King County International Airport in Seattle, Washington, U.S., on Friday, Jan. 29, 2016. Boeing Co.’s newest 737 jetliner gunned its engines and headed into rain-streaked skies Friday, with profit and pride riding on its wings. Photographer: Mike Kane/Bloomberg via Getty Images A production halt of Boeing’s 737 Max jets could be felt well beyond the aerospace giant’s quarterly profits, according to J.P. Morgan. Michael Feroli, the bank’s chief U.S. economist, said…

U.S. Leading Economic Index Rises Slightly More Than Expected In February

Reflecting accommodative financial conditions and a rebound in stock prices, the Conference Board released a report on Thursday showing its reading on leading U.S. economic indicators rose for the first time in five months in February. The Conference Board said its leading economic index edged up by 0.2 percent in February after revised data showed no change in January. Economists had expected the index to inch up by 0.1 percent compared to the 0.1 percent dip originally reported for the previous month. Ataman Ozyildirim, Director of Economic Research at the…

Persistent deficits and higher spending raising Canada’s economic ‘vulnerability’: Fitch

The Liberal government’s preference for continued deficits and increasing program spending “could increase the vulnerability of public finances to a faster economic slowdown or sudden shock,” according to Fitch Ratings. Canada has the second largest gross government debt of ‘AAA’ rated countries after the United States, which is ‘incompatible’ with its gold-plated rating, according to the ratings agency. While the credit agency concedes that increased spending and projected deficits in Canada’s latest budget remain consistent with a falling federal debt burden, the forecast assumes the economy will avoid a recession.…