In Europe we are experiencing a new déjà vu. It was almost a year ago that Christine Lagarde promised that the European Central Bank had learned from the mistakes of previous crises and would not derail the economic recovery by withdrawing emergency support too early. The ECB president’s comments were a reference to the fateful […]
Tag: Interest Rates
Daley (Fed): ‘Sane’ move to increase 50 points in September
The Federal Reserve would be “sensible” to raise interest rates by 50 basis points next month, San Francisco Fed President Mary Daley said today, but stressed that policymakers are determined to reduce inflation. “I’m starting with the idea that 50 bp would be the logical thing to do in September because I think I’m seeing […]
Alpha Bank analysis: Rising interest rate cycle, investment and credit expansion in the Eurozone
The increase in interest rates by the European Central Bank (ECB) by half a percentage point – its first increase in more than a decade – marks the first move away from the policy of pursuing unconventional monetary policy, Alpha Bank economic analysts point out , in the bank’s weekly financial report. The ECB’s move, […]
Larry Summers: Fed Continues ‘Wishful’ Inflation Policy
Strong criticism of the Fed and its head Jerome Powell was expressed by former US Treasury Secretary and long-time Harvard President Larry Summers, saying he fears the central bank is continuing to pursue a policy of “wishful thinking” in its actions against inflation. . “Jay Powell said things that, to put it bluntly, were unsupported,” […]
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 […]
Hungary hikes interest rates to double digits as inflation continues to rise
The National Bank of Hungary (NBH) raised its key interest rate by 100 basis points to 10.75% on Tuesday, taking borrowing costs into double-digit territory for the first time since late 2008, and signaled that more rate hikes are coming due to rising inflation. “It is justified to tighten the key interest rate decisively in […]
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, […]
The ECB entered the ‘dance’ of interest rate hikes – Restrictive policy from 75 central banks
The European Central Bank’s rate hike of 50 basis points (half a percentage point) on Thursday, for the first time in 11 years, was the first in a cycle of tightening policy it will implement to reduce inflation, which has climbed to 8, 6% in June for the Eurozone. How high interest rates will go […]
Lagarde: The ECB will raise interest rates until inflation drops to 2%
The European Central Bank will continue raising interest rates until inflation falls back to its 2% target, Bank President Christine Lagarde said in an interview with Germany’s Funke Mediengruppe published today, Friday. As Reuters comments, it is Ms Lagarde’s strongest commitment to date to fight inflation, which reached 8.6% in the euro zone last month, […]
