2025-08-13 19:17
Aug 13 (Reuters) - Atlanta Federal Reserve President Raphael Bostic on Wednesday said a U.S. job market holding near full employment offers the central bank the "luxury" of being able to avoid rushing to make any policy adjustments. The Fed should avoid policy volatility that can be troublesome to the public, Bostic said at an event in Alabama, adding that his "predisposition is to try not to do that" and to wait for "a little more clarity on where things are going." Sign up here. "Now I feel we have the luxury to do that today because the labor market has been pretty much at full employment," Bostic said. "Our maximum employment mandate is not at risk in the same way that the inflation mandate is," he said. That said, the recent employment report for July, which showed far fewer jobs created last month than expected and a historically large downward revision in job growth in the previous two months, could change the conversation. If the job market is substantially weaker than previously thought, "then maybe the risks are more in balance and we should be thinking about our ability to be patient is much less than it was before," Bostic said. "To me, that's the question we're going to try to have an answer for." Getting a better understanding of the health of the job market is "really our task for the next five weeks or so" ahead of the Fed's September 16-17 policy meeting, he added. Investors in recent days have come to fully price in the likelihood that the Fed next month will cut its benchmark overnight interest rate from the current 4.25%-4.50% range, where it has been since last December. Asked about the effects of tariffs on the outlook for inflation and Fed policy, Bostic said the textbook case argues that the levies cause a one-time price increase that the U.S. central bank should not respond to. But what's different with the tariffs that President Donald Trump is imposing is that they are broader and higher than expected and also have a larger policy goal of reorienting global supply chains. "You're going to see fundamental changes if this is successful, and if that's the case, then there's no reason you should expect that the post-tariff trajectory (for inflation) will look like the pre-tariff one," Bostic said. "It is actually a different economy." https://www.reuters.com/business/fed-can-wait-adjust-policy-because-job-market-is-near-full-employment-bostic-2025-08-13/
2025-08-13 18:34
NEW YORK, Aug 13 (Reuters) - Crude oil flows on the Seaway pipeline in Texas fell on Wednesday, four sources said, as the pipeline's operator reported a leak on the system to state regulators. The 950,000-barrel-per-day Seaway pipeline runs between Cushing, Oklahoma, and the Freeport, Texas, area and connects to the Enterprise Crude Houston (ECHO) terminal, a storage facility in southeast Houston. Sign up here. Pipeline owner Enterprise (EPD.N) , opens new tab said a crude oil leak on part of the Seaway pipeline system in Houston occurred on Tuesday, according to a filing with the Texas Commission on Environmental Quality. A portion of the pipeline went down on Tuesday night, three sources said on Wednesday. A separate source said the secondary pipeline that runs into the ECHO terminal was out on Tuesday night. Crude flows on the Seaway mainline and the portion running into ECHO were seen lower on Tuesday night. The Seaway pipeline is jointly owned by Enbridge and Enterprise Products Partners. Enbridge and Enterprise Products did not immediately respond to questions about the Seaway's operations. U.S. West Texas Intermediate crude at East Houston , also known as MEH, traded a 95-cent a barrel premium to U.S. crude futures , the strongest since April. MEH traded as much as 130-cent a barrel premium to U.S. crude futures this morning, a trader said. Operations on the pipeline are expected to be restored later on Wednesday, two sources said. https://www.reuters.com/business/energy/crude-oil-flows-enterprises-texas-seaway-pipeline-fall-leak-reported-2025-08-13/
2025-08-13 18:33
USDA move affects 6,500 FSIS and 1,650 APHIS employees Termination adds to federal workers' uncertainty, says union chairperson Federal appeals court recently lifted injunction on executive order implementation WASHINGTON, Aug 13 (Reuters) - The U.S. Department of Agriculture moved to terminate union contracts with thousands of employees of its animal health and food safety inspection agencies, according to documents seen by Reuters, as one union on Wednesday challenged the firings in court. The notices sent to union leaders at the Animal and Plant Health Inspection Service and Food Safety and Inspection Service on Tuesday evening said the action was aligned with President Donald Trump's March executive order to exclude some federal workers from collective bargaining because their agencies have national security missions, the documents show. Sign up here. The Trump administration also has moved to end union contracts at the Environmental Protection Agency, Department of Veterans Affairs and other agencies under the executive order. "USDA is optimizing our workforce and returning the Department to a customer service-focused, farmer-first agency," an agency spokesperson said. "This move will allow us to be a much more nimble as well as an attractive employer." About 6,500 food and consumer safety inspectors at FSIS were covered by the terminated collective bargaining agreement, said Paula Soldner, chairperson of the National Joint Council of Food Inspection Locals, part of the American Federation of Government Employees. FSIS employees inspect meat, poultry and egg products to assess quality and prevent foodborne illness. The termination adds to employees' uncertainty and confusion as the administration works to shrink the federal government, Soldner said. Roughly 1,500 APHIS employees who inspect plants for pests and disease will be affected by a notice terminating their bargaining agreement, according to the National Association of Agriculture Employees. The NAAE filed a lawsuit against the Trump administration on Wednesday challenging the termination on the grounds that their work is unrelated to national security. At least another 150 APHIS employees in a second agency union will also be affected, said a source familiar with the situation. A federal appeals court on August 1 lifted an injunction that had prevented agencies from implementing the executive order. The USDA has lost more than 15,000 employees since January due to terminations or financial incentives to leave, including more than 500 at FSIS and 1,300 at APHIS. https://www.reuters.com/legal/litigation/usda-moves-end-employee-union-contracts-documents-show-2025-08-13/
2025-08-13 18:26
Goolsbee cautious on assuming tariffs as one-time inflation shock Fed's next policy meeting is on September 16-17 Goolsbee says labor market solid despite slowing job growth Aug 13 (Reuters) - Chicago Federal Reserve President Austan Goolsbee said on Wednesday the U.S. central bank is grappling with understanding whether tariffs will push up inflation just temporarily or more persistently, which would inform its decision on when to cut interest rates. "As we go into the fall, these are going to be some live meetings and we're going to have to figure it out," Goolsbee told the Greater Springfield Chamber of Commerce in Springfield, Illinois. "The hardest thing that a central bank ever has to do is to try to get the timing right when there are moments of transition." Sign up here. Goolsbee said he is uneasy assuming tariffs will be just a one-time shock to inflation and wants to see more data including wholesale price data due out this week and broader inflation data next month before coming to a view on whether a rate cut is warranted. The Fed left its benchmark overnight interest rate in the 4.25%-4.50% range at its meeting last month, a decision that drew dissents from Fed Vice Chair of Supervision Michelle Bowman and Fed Governor Christopher Waller. Bowman and Waller wanted to cut rates to head off what they worried was incipient weakness in the labor market. Two days after the end of that policy meeting, the U.S. Labor Department revised its earlier estimates of job growth in May and June sharply downward and reported a smaller-than-expected job gain in July. President Donald Trump called the data rigged and fired the commissioner in charge of producing it. Even so, allies including Treasury Secretary Scott Bessent have seized on the recent jobs report to call for rate cuts that Trump has pushed hard for all year. Some Fed officials also feel the July jobs report bolstered the case for easing policy. Goolsbee cautioned against reading too much into slowing job growth since that may reflect the sharp drop in immigration. He said he puts more weight on data like the unemployment rate, which at 4.2% is historically low. "I think the state of the labor market is pretty strong, pretty solid," Goolsbee said. Data earlier this week showed consumer prices rose 0.2% on a monthly basis in July, a downshift from the 0.3% reported for the prior month. Goolsbee said he took note of the rise in services inflation, which is not directly related to tariffs, and would be concerned if upcoming data continued to show a broadening of price pressures. https://www.reuters.com/world/us/fed-grappling-with-impact-tariffs-it-ponders-rate-decisions-goolsbee-says-2025-08-13/
2025-08-13 18:10
Bullish shares more than double in NYSE debut Crypto exchange prices IPO at $37 vs previously lifted range of $32-$33 Market reaction reflects positively for other crypto firms looking to list Bullish valued at ~$13.16 billion in NYSE debut Aug 13 (Reuters) - Cryptocurrency exchange operator Bullish (BLSH.N) , opens new tab was valued at about $13.16 billion after its shares more than doubled in their NYSE debut on Wednesday, underscoring investor confidence in the sector and lifting prospects for future U.S. listings by other digital asset firms. The parent of crypto news website CoinDesk raised $1.11 billion in its IPO, valuing the company at $5.4 billion — another sign of mainstream adoption in a market that recently topped $4 trillion. Sign up here. "Bullish came out with an attractive initial valuation, and investors responded by aggressively bidding it up during the pre-IPO process," said Jeff Zell, senior research analyst at IPO Boutique. The stock opened at $90 and was trading over 150% its IPO price of $37 in afternoon trading. It went as high as $118, before paring gains slightly to trade at $92.60. A string of regulatory wins under a pro-crypto White House, corporate treasury adoption and ETF inflows have prompted investors to embrace the once-scorned digital asset class, driving bellwether bitcoin to record highs. Exchange operator Gemini and asset manager Grayscale are also among the crypto firms that have confidentially filed to go public. "We've gone public today, and there's a slew of others that are going to follow us, and I think that is net beneficial, because it gives people more options in terms of how they access this asset class," Bullish President Chris Tyrer told Reuters in an interview. Bullish is close to concluding a two-year process to obtain a virtual currency license known as a "BitLicense" in New York, which would allow the company to operate in the state, Tyrer said. The BitLicense requires companies to comply with requirements related to know-your-customer, anti-money laundering and capital. Peter Thiel-backed Bullish plans to convert a significant portion of the IPO proceeds to stablecoins — a slice of the crypto space that has boomed since U.S. President Donald Trump signed the Genius Act, creating a regulatory regime for the dollar-pegged cryptocurrencies. INSTITUTIONAL FOCUS Bullish's debut marks a rare U.S. listing by a crypto exchange, joining larger retail-focused rival Coinbase (COIN.O) , opens new tab, which became the first crypto player to be included in the benchmark S&P 500 (.SPX) , opens new tab index in May. Founded in 2020, Bullish targets institutional clients, whose crypto holdings are expected to rise as a new White House order aims to allow alternative investments in 401(k) retirement plans. "A pure institutional strategy positions Bullish for more stable, recurring revenue than exchanges reliant on retail volumes, which tend to be cyclical and sentiment-driven," said Michael Hall, co-chief investment officer and founding partner at Nickel Digital Asset Management. Bullish CEO Tom Farley was previously the president of the NYSE. "For a sector still overcoming reputational headwinds, that kind of leadership experience can be a differentiator in securing institutional mandates," Hall said. https://www.reuters.com/business/finance/crypto-exchange-bullish-valued-nearly-132-billion-blowout-nyse-debut-2025-08-13/
2025-08-13 17:43
By Promit Mukherjee and David Ljunggren OTTAWA, Aug 13 (Reuters) - Ahead of the Bank of Canada's July 30 interest rate decision, governors were divided on how much monetary policy could aid growth under current economic conditions, minutes of the meeting showed on Wednesday. Sign up here. The BoC kept its key policy rate unchanged at 2.75% for the third time in a row but said it could cut rates if the economy weakened as a result of U.S. tariffs and inflationary pressures were kept under control. "Monetary policy works to control inflation by influencing demand and is not well suited to shocks that push prices up because of a decline in aggregate supply," said the minutes. "In this context, there was some debate about what monetary policy could do to support the economy." The bank said the worst case tariff scenario had not transpired and noted there were no signs inflation expectations were becoming de-anchored. The minutes showed some members of the seven-person rate-setting team felt the BoC might have already provided all the support it could by bringing the rates to the middle of its so-called neutral range. The neutral rate is the point where the key rate is just enough to not stimulate or restrict economic growth, and the bank estimates this rate to be within the 2.25% and 3.25% range. "Given the lagged effects of monetary policy, there was a risk that further easing might take effect only as demand was recovering, which could add to price pressures," the meeting noted. But others believed that more support would likely be needed "given the estimated amount and persistence of slack in the economy, particularly if the labor market softened further". Members agreed the spillovers from lower export demand into business investment, employment and household spending had been limited so far. The BoC also discussed how much government spending could partially offset tariff-led weakness. But given the uncertainty and the path of trade negotiations between the U.S. and Canada, they would need to wait to draw firm conclusions on how the economy and inflation would evolve, forcing them to look "over a shorter horizon than usual." The bank's next rate decision will be on Sept. 17. Money markets see the odds of another pause are roughly 67% since most analysts and economists think the worst impact of tariffs on the Canadian economy is likely over. (Reuters Ottawa editorial) Keywords: CANADA CENBANK/ https://www.reuters.com/world/americas/bank-canada-divided-impact-monetary-policy-given-tariffs-say-minutes-2025-08-13/
