MONEY MASTER

The more you look at the financial market and economy, the more uncertainties might surface. When we were coming into 2016, most people were talking about the possibilities of three to four interest rate hikes but just about 2 months down the road, the tone had changed with market participants changing their view to a possibility of the Fed raising the rate as once, if at all, in light of weak inflation and global volatility. But just one new data and we've got people getting up on their feet and watch for Federal Reserves for clues about the US central banks next move because apparently, there is a hot reading on inflation on Friday. Friday's data showed the core consumer price index (CPI), a measure of underlying U.S. inflation, rose in January by the most in nearly 4-1/2 years to a 2.2 percent annualized rate. It drew particular attention as the number was above the Fed's 2.0 percent target, though it is not the central bank's benchmark inflation measure. The up...

A stronger than expected October jobs report boost the chances of a December rate hike and Wall Street dropped slightly lower on Friday to reflect that. Out of the 10 major sectors in S&P, nine were lower, with the interest rate sensitive utilities sector's 3% decline being the worst while the financial sectors was only up by 1% and the only gainer. S&P 500 Index dropped slightly on Friday The Labor Department's report showed nonfarm payrolls increased by 271,000 in October, beating the 180,000 expected. Data for August and September were revised to show 12,000 more jobs on average were created than previously reported. The unemployment rate fell to 5.0%, the lowest since April 2008, from 5.1% in September. The jobless rate is now at a level many Fed officials view as consistent with full employment. "I think it's good news — it's good news for the economy, eventually the market will take it as good news," said Sean Lynch, co-h...

The US policymakers had pivoted in their meeting earlier last week towards a December interest rate increase, largely due to the Fed's updated model of the US economy.  Will Janet Yellen and the Fed raise rates in December? The model assumes that the Federal Open Market Committee (FOMC) raises the benchmark rate in late 2015. However, immediate lift-off has "been a feature" of the model since late 2014, Barclays noted. Fed spokesman, David Skidmore declined to comment. In the current model, "the long-run growth rate is two-tenths lower" at 2%, Barclays said. FOMC participants forecast the economy's long-run growth rate at 2% in September.  An increase in the Fed rates would have an impact well beyond the US borders, increasing borrowing costs for dollar debtors in emerging markets, pushing up the greenback against some major currencies and driving a global reallocation of investment money.  Many believe that the US jobs data due in th...