Federal Reserve Bank President Jay Paul sent the right message from Jackson Hole to markets about the bank’s determination to curb inflation, but he failed to avoid past policy mistakes in his speech, according to renowned economist Mohamed El They were. “He finally sent the right message. He should have done it months ago,” Allianz’s […]
Tag: Interest Rates
US two-year bond at high since 2007
Two-year U.S. Treasury yields hit a 15-year high today as investors reassessed their stance on a more extended period of aggressive Fed rate hikes that the Fed chief signaled on Friday. The Fed will continue to raise interest rates in an effort to curb inflation, even if those hikes cause “financial pain” to households and […]
BlackRock: Fed ‘must go on vacation’ after 2022 rate hikes
The Federal Reserve’s rate hikes in 2022 to fight inflation are likely enough to put its officials on hold, limiting the risk of too much tightening damaging the U.S. economy, BlackRock said. This position was expressed in a note by Rick Reeder, head of fixed income investments at the world’s largest asset manager. The Fed […]
Olli Wren: Time for action for the ECB
The European Central Bank needs to act strongly to curb inflation and maintain expectations of future price growth as the weak euro exacerbates rising energy costs, according to Olli Rehn. It is important for policymakers to continue with a “consistent and smooth” normalization of monetary policy, Rehn, who heads Finland’s central bank, told Bloomberg Television […]
Powell’s 8-minute speech wiped $78 billion from wealthiest Americans
In just eight minutes, the chairman of the Federal Reserve Bank of the USA (Fed) Jerome Powell triggered a market crash that reduced the fortunes of America’s richest people by $78 billion, according to Bloomberg. Elon Musk saw $5.5 billion wiped from his fortune. Jeff Bezos lost $6.8 billion, the most of anyone on the […]
M. Kazaks (ECB): The ECB needs another big interest rate hike in September
A recession in the euro zone is now highly likely, but that alone will not reduce inflation and the European Central Bank should opt for a big rate hike next month, ECB policymaker Martins Kazaks said on Saturday, according to with reuters. The ECB raised interest rates by 50 basis points in July to zero, […]
Powell also ‘throws’ cryptocurrencies
Cryptocurrencies are following the decline in international markets and are taking losses after US Federal Reserve (Fed) Chairman Jerome Powell warned against premature easing of monetary policy, with Bitcoin hovering just above $20,000. “Powell’s admission that there will be pain before there is relief is hawkish,” said Josh Olszewicz, head of research at digital asset […]
Powell: The Fed will aggressively use its tools to rein in inflation
LAST UPDATE: 17.39 Federal Reserve Chairman Jerome Powell spoke of a tough commitment Friday to contain inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “financial stress” on the US economy, according to the CNBC. In his much-anticipated annual speech on monetary policy in Jackson […]
Bostic (Fed): Smaller rate hike in September as PCE eases
The member of the Board of Directors took a position in favor of a milder increase in Fed interest rates. and head of the Atlanta branch, Rafael Bostic, shortly after data showed that the personal expenditure index (PCE) – the Bank’s preferred gauge of inflation – was slowing. In particular, in his statements after the […]
El Erian: The Fed has no room after ‘falling asleep at the wheel’
The Fed can’t even turn a blind eye to inflation after it “fell asleep at the wheel” and Jerome Powell faces a huge challenge to find a way to control prices without damaging the economy, says the famous economist Mohamed El Erian. “The Fed has delayed so long that it now faces two challenges. Putting […]