The authorities of the Federal Reserve of USA They were divided on Wednesday on whether recent high inflation data and a stubbornly hot job market will call for further tightening of interest rates, or simply keeping monetary policy tighter for longer. At a business event, Minneapolis Fed President Neel Kashkari said he was leaning “to […]
Tag: federal Reserve
Summers sees signs of a sharp drop in economic activity
The former secretary of Treasure Lawrence Summers He said worrying signs of a possible sharp decline in activity, combined with strength in other indicators, point to uncertain economic prospects. “We have an extremely difficult economy to interpret,” noted Summers on the show Wall Street Weekfrom Bloomberg Television with David Westin. “People may be reading the […]
Americans raise their credit card debt to almost US$1B
Stubbornly high prices and robust consumer spending collided in the fourth quarter of 2022, pushing credit card balances to a record $986 billion. The $61 billion increase from the prior quarter was the largest seen in data going back to 1999 and pushed total American credit card debt past the previous high of $927 billion, […]
Traders begin betting on another half-point Fed hike
Traders began betting on Thursday that the Federal Reserve could raise interest rates again at its next March policy meeting, after an official suggested that at their last meeting he saw arguments.”convincing” for a rise of that magnitude. Interbank index swaps are now discounting around 29 basis points of adjustment for the March meeting, after […]
Biden will name two top economic advisers
President Joe Biden will appoint the vice president of the Federal ReserveLael Brainard, as the new director of its National Economic Council, a key person in coordinating policies, dialogue with business leaders and negotiations with Congress. Biden will also name his adviser Jared Bernstein as chairman of the White House Council of Economic Advisers, according […]
FED raises the interest rate in line with expectations
The US Federal Reserve announced the eighth consecutive increase in interest rates as a measure to combat inflation. The United States Federal Reserve (FED) announced this Wednesday, February 1, 2023 the eighth consecutive increase in interest rates, a rise of 0.25 points, which confirms a slowdown in increases. With this increase, less than the previous […]
US GDP recovered 2.1% in 2022
Advance. In a scenario of moderate and low inflation unemploymentthe US economy continues to grow. The US economy advanced 2.1% during 2022 compared to 2021, According to the first calculation of the annual gross domestic product, made by the Bureau of Economic Analysis (BEA). It is so that the GDP The US advanced 0.7% compared […]
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 […]
The Trillion Dollar Coin: Crazy Idea or Solution to US Debt?
Considered by most economists as a crazy and improbable idea, the theory of a trillion dollar coin (“One Trillion Dollar Coin”) to eliminate the deficit has resurfaced again in USA as a radical way out of the impasse caused by the debt ceiling. The head of the Treasury Department herself, Janet Yellen, has had to […]
Debt Limit Debate Could Hasten End of Fed Tightening
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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, […]