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 […]
Tag: federal Reserve
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
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, […]
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 […]
Lima Stock Exchange closes the day with profits despite protests
The Lima Stock Exchange closed the session this Thursday, January 19, with gains in most of its indices, recording 12 upward indicators and 4 downward indicators. Thus, the S&P/BVL Peru General Index, the most representative of the Lima stock market, rose 0.35% to 22,973.34 points. For his part, he S&P/BVL Peru Selective Indexwhich is made […]
Inflation in the United States meets almost all of Powell’s expectations. Whats Next?
Put yourself in the shoes of the Fed. Less than two months ago, Chairman Jerome Powell laid out his analysis of inflation in a speech at the Brookings Institution. Today, most of your dreams and hopes are coming true. Supply chains are picking up and prices for basic goods are cooling. Perhaps most importantly, central […]