The Federal Reserve’s preferred gauge of inflation rose again in June, defying hopes that the price rally may have peaked, which could leave some room for the central bank to ease rate hikes in the coming months. Specifically, the price index for personal consumption expenditures rose 1% in June from the previous month, with the […]
Tag: FED (Federal Reserve)
Is the recession ‘locked in’ after the Fed’s new interest rate hike?
75 base units and… with the bullet. The central US Federal Reserve raised its interest rate, while an aggressive move of 1 percentage point should not be ruled out next time. The markets had discounted the July hike, which is why the stock markets are crashing. Here’s the Fed’s rationale: “Recent indicators of spending and […]
Morgan Stanley warns: ‘Trap’ post-Fed stock recovery
Morgan Stanley chief analyst Mike Wilson, who correctly predicted Wall Street’s first-half plunge, is warning investors to hold back on stocks despite the market’s rally in response to yesterday’s Fed decisions. According to Wilson, who spoke to CNBC after yesterday’s Wall Street jump, Wall Street’s excitement over the idea that the Fed will begin to […]
Gulf central banks raised interest rates after the Fed’s move
Gulf central banks raised their key interest rates on Wednesday, following a similar move by the US central bank to fight inflation. All Gulf countries have their currency pegged to the US dollar except Kuwait, which pegs its dinar to a basket of currencies that includes the dollar. Kuwait’s central bank said it would raise […]
Powell (Fed): ‘Window’ for another rate hike of 75 basis points in September
LAST UPDATE 22:20 The Federal Reserve has the right tools and determination to bring inflation back to its 2% target, central bank governor Jerome Powell said shortly after decision on the second consecutive increase in US interest rates by 75 basis points. The Fed governor underlined that inflation remains high and in this context the […]
US: Second consecutive rate hike of 75 basis points by the Federal Reserve
The Federal Reserve hiked its interest rates by another 75 basis points today, confirming analysts’ estimates, with the central bank taking another decisive step towards bringing inflation back closer to its 2% target. Today’s decision to increase interest rates by 75 bp. at 2.25% to 2.5% it was unanimous. In June, the Fed surprised analysts […]
Is the worst over for stocks or not? Morgan Stanley and JPMorgan disagree
The deep uncertainty of the investment environment was underscored by reports from top Wall Street strategists, who were divided on their estimates of the path the stock market will take in the second half of the year, amid uncertainty over the Fed’s stance in the shadow of deterioration of economic data. In particular, while analysts […]
Fed Will ‘Crush Growth’ Before Changing Policy, BlackRock Warns
Volatility in markets will intensify as central banks believe they can tame high inflation without “crushing growth,” the world’s biggest asset manager, BlackRock, said. “We expect more volatility ahead as central banks choose sides in the difficult trade-off between growth and inflation,” strategists at BlackRock Investment Institute said in a note today. “We believe the […]
The Fed has failed on four counts
Of Mohamed A. El-Erian Global economic watchers and market participants will pay close attention next week to how the U.S. Federal Reserve describes the country’s economic outlook, the size of its rate hike and whether it changes the pace of its balance sheet shrinkage. . But for the well-being of the U.S. and global economy, […]
Because the ‘beast’ of inflation will be out of control for years – and it will change our lives
By Allison Schrager We have awakened the beast and now we may have to learn to live with it. After more than 20 years of low, steady inflation, it’s rebounding—to over 9%—and may never return to pre-pandemic levels. We’ve already lost the advantages of our once economy: the low interest rates and wage increases that […]
