Updated on 12/23/2021 02:07 am The biggest risks to markets in 2022 would be inflation, coronavirus and geopolitical tensions, according to about 700 respondents to the Markets Live Global Survey. More than 30% of those interviewed mentioned inflation as one of their biggest concerns when asked: “What do you think is the greatest tail risk […]
Tag: Fed
Mohamed El-Erian: Fed takes a positive turn, but needs to be done
This new measure goes double-tailed: some perceive it as a tough-minded turn from the Fed, and others as a big reset. In just one meeting, the Federal Reserve’s policy committee abruptly dropped its characterization of inflation as “transitory” to label it as the “enemy # 1” of economic recovery. This change, although seemingly abrupt and […]
IMF Says Fed’s Tapering Acceleration Is A Well-calibrated Response
Updated 12/16/2021 02:13 pm The decision by the United States Federal Reserve (Fed) to accelerate the reduction of bond purchases is a well-calibrated response to the mounting pressures on wages and prices, but increases the risks for emerging markets, said the spokesman for the IMF, Gerry Rice. A day after the Fed flagged three potential […]
Fed anticipates end of asset purchases and foresees three rate hikes in 2022
The US Federal Reserve (Fed) announced on Wednesday that it will end its asset purchase program ahead of schedule, thus opening the door to three increases in its benchmark rate in 2022, with an eye toward fighting inflation. Inflation in the United States will be above expectations, at 5.3% in 2021 and 2.6% in 2022, […]
The Fed is expected to take one of the most restrictive turns in years
This week, Federal Reserve officials will accelerate the withdrawal of the bond purchase program and signal the rise in interest rates in 2022, economists surveyed by Bloomberg said, announcing a historic shift in policy to counter inflation further. fast since the 1980s. More than half of the economists surveyed estimate that the Fed’s quarterly forecasts, […]
Fed prepares to de-mark on inflationary fears for another uncertain year
The US Federal Reserve, pressured by persistently high inflation and encouraged by lower-than-expected unemployment, is set to set an agenda for higher interest rates next year on Wednesday, as its authorities announce when and how much it will have to pay. increase the cost of borrowing to keep the economy in balance. Fed Chairman Jerome […]
US bank executives are concerned about persistent inflation
Bank executives from USA expressed concern about the impact of a sustained acceleration of the inflation, which increases pressure on the Federal Reserve to accelerate plans to reduce the pace of its asset purchases. Senior banking officials are increasingly concerned that inflation could affect borrowers’ ability to repay loans, slow US economic growth and destabilize […]
Clear or confusing? Central bank communication skills put to the test
Financial markets, which this year have tried to decipher the signals about the future of monetary policy sent by central banks, face their biggest challenge to date in December, when in the space of 24 hours the Federal Reserve (Fed), the Banco Central Europea (ECB) and the Bank of England (BoE) they hold crucial meetings. […]
US Treasury Bonds Record Highest Weekly Earnings in Over a Year, BofA Says
Updated on 03/12/2021 09:54 am US Treasuries posted their highest earnings since October 2020, while high-yield, investment-grade debt funds posted strong outflows on concerns over high inflation and a tightening of the Federal Reserve’s monetary policy. (Fed) said the BofA. Cash funds posted the largest weekly inflows, at $ 27.1 billion, followed by stocks at […]
Fed’s Williams says omicron variant may prolong imbalances
Updated on 12/01/2021 05:05 pm The omicron variant of COVID-19 could extend some of the challenges and supply chain tension that have led to higher inflation, and Federal Reserve (Fed) officials will need to take this into account when deciding how to withdraw their monetary policy. supportive, said New York Fed Chairman John Williams. “Clearly, […]