US Fed chief Powell warns higher rates may tip economy into recession June 22, 2022 The chief of the US Federal Reserve has warned it may hike interest rates to a level that tips the economy into a recession. “It’s certainly a possibility” that a rapid tightening of monetary policy will force the US economy into reverse, Fed chair Jerome Powell said today in response to a grilling by American [...]
Recession concerns growing rapidly as central banks struggle to put inflation genie back in its bottle June 20, 2022 Despite attempts at a modest rebound on Friday, European markets still finished lower for the second week in succession, posting their lowest weekly closes since March. US markets also finished the week similarly mixed, but also sharply lower, with the S&P500 posting its worst week since March 2020, ahead of the Juneteenth long weekend. “As [...]
US Federal Reserve official warns investors to brace for more steep rate rises June 19, 2022 The US Federal Reserve will push through more steep rate hikes if inflation shows little sign of letting up, a top stateside central banker said over the weekend. Fed governor Christopher Waller said at a Society for Computational Economics conference in Dallas that “if the data comes in as I expect, I will support a [...]
Central banks face tough journey to ‘Goldilocks’ policy setting June 19, 2022 Goldilocks found the perfect bowl of porridge through trial and error. The US Federal Reserve, Bank of England and the rest of the central banking elite are following a similar rationale right now. They are grasping for that “just-right” policy setting which allows an economy to reach its full potential without knowing what that setting [...]
US Fed rate hike rally runs out of steam as Wall Street tumbles June 16, 2022 Wall Street bottomed out today after the rally triggered by the US Federal Reserve yesterday flexing its inflation fighting muscles ran out of steam. Traders ditched stocks as they brace for Fed chair Jerome Powell and fellow rate setters following an extremely hawkish path on interest rates. The tech-heavy Nasdaq, which has suffered heavy losses [...]
US Federal Reserve fires 75 basis point rate hike bazooka to tackle inflation June 15, 2022 The US Federal Reserve today fired a rate hike bazooka as it scrambles to tame the worst bout of inflation across the pond in recent history. Chair Jerome Powell and co lifted the world’s most important interest rate 75 basis points, the steepest rise since 1994, to between 1.5 and 1.75 per cent. The move [...]
Central banks must front-load rate hikes to tame inflation, Carney warns June 15, 2022 The world’s biggest central banks need to dial up the pace of rate hikes to shake inflation out of their respective economies, the former chief of the Bank of England said today. Canadian banker Mark Carney, 57, who led Threadneedle Street from 2013 to 2020, told Bloomberg that monetary authorities “need to start moving more [...]
US Federal Reserve to deliver 75 basis point rate rise tomorrow June 14, 2022 The US Federal Reserve will shock markets tomorrow by beginning a 75 basis point rate hike cycle in a bid to shake inflation out of the American economy. That’s according to top Wall Street analysts, who said last Friday’s inflation overshoot will force Fed chair Jerome Powell and rate setters to deliver a monetary policy [...]
US inflation smashes expectations in sign Fed will waive through further steep rate hikes June 10, 2022 US inflation has smashed expectations in a sign the Federal Reserve will waive through a series of steep and rapid rate hikes to prevent high prices from embedding in the American economy. Prices climbed 8.6 per cent over the last year, higher than Wall Street’s forecasts of 8.3 per cent, according to fresh figures published [...]
Q&A: will the gold price surge continue? March 31, 2022 | City Talk James Luke explains the effect that Russian sanctions and Fed rate rises are having on gold, and what may lie ahead for the precious metal. Gold prices have been on an upward trend since mid-January, accelerating sharply upon Russia’s shocking invasion of Ukraine towards the end of February as investors flocked to perceived safe haven [...]