The US presented a rise in its GDP of 0.7% last year. This advance occurred in the context of moderate inflation and a low unemployment rate in the country. The economy of USA It increased 2.1% during 2022 compared to 2021, according to the first calculation of the country’s annual gross domestic product published last […]
Tag: Fed
Mohamed El-Erian: Why should the Fed raise rates by 50 points?
Some market and economic indicators support such policy action, but it is far from uniform. In fact, my broader analysis of economic and financial conditions would favor the option of the Fed raising rates by 50 points, also due to risk management, credibility, and the persistent misalignment between market prices and policy stance. forward from […]
Debt Limit Debate Could Hasten End of Fed Tightening
By reducing its bond portfolio by up to $95 billion a month, the central bank drains liquidity from the US financial system, thus complementing its interest rate hikes in the fight to contain inflation. Therefore, an early end to quantitative tightening could provide some relief to the US economy. Through a complex series of reactions, […]
Former Treasury Secretary warns of crisis if inflation targets are raised
The commentary is a response to suggestions from economists, including Olivier Blanchard, former chief economist of International Monetary Fundwho have suggested raising inflation targets from 2% to 3% to avoid recessions. “To assume that some kind of inflation targeting increase would be a salvation would be a costly mistake, ultimately having an adverse effect, as […]
Dollar closes the week at S/3.8590 and the Lima Stock Market rises 0.14%
So far in January, the dollar has presented variations that respond to the local factor. Although at the end of the first week of 2023 it stood at S/3.7940 —one of the lowest prices in the last six months—, last Thursday it rose to S/3.860, one of the highest levels since November of 2022. “It […]
Fed’s Waller is in favor of a 25 basis point hike at the next meeting
“I am currently in favor of a 25 basis point hike at the next FOMC meeting later this month,” said Waller Friday in remarks prepared to be delivered at the Council on Foreign Relations in New Yorkreferring to the Federal Open Market Committee, entity in charge of setting interest rates. “Beyond that, we still have […]
Fed continues to “probe” the necessary level of rates to control inflation
The US Federal Reserve is still “probing” the right level of interest rates to control inflation, Fed Vice Chair Lael Brainard said on Thursday, noting the reason for a slower pace of rate increases is to create a balance of risks in the economy. “We are looking for the sufficiently restrictive levelBrainard said. “We are […]
Fed’s Mester says rates need to rise “a little” above 5%
The Federal Reserve needs to raise interest rates.”a little” above the range of 5% to 5.25% to control inflation, said Wednesday the president of the entity in Cleveland, Loretta Mester, who did not want to reveal what would be her preferred decision for the next meeting. “We are not at 5% yet, we are not […]
When was money invented and at what point did the dollar become the main currency in the world?
Archaeologists, historians, philosophers and economists have their own theories about the mysterious leap that humans took when we developed the first commercial systems born after barter. This system, which allows us to set prices and register debts, originates from the money in the transactions that thousands of years ago they were made with cereals, grams […]
Major US banks brace for a downturn in the economy
With information from AFP The great banks of USA, after the increase in rates and market volatility, had solid results in the last quarter of 2022. However, for these months they foresee a deterioration in the economy. In addition, they have set aside money to deal with possible defaults by their clients. In that line, […]