Category: recession

Shares Drop Ahead of US Debt Ceiling Vote; China Data Rattles Nerves

LONDON—Global shares fell on Wednesday ahead of a crucial vote in Washington on the U.S. debt ceiling, while commodities and the Chinese yuan came under pressure after data highlighted faltering growth in the world’s second-largest economy. The MSCI All-World Index of global shares, which is heading for its first monthly decline since February, was down…


Yen Firms on Policymaker Meeting, Dollar up After Debt Deal

LONDON/SINGAPORE—The yen strengthened on Tuesday on news of a meeting of Japan’s finance ministry and central bank, while elsewhere the dollar rose to a two-month high against a basket of its peers after the U.S. debt ceiling deal. The dollar was last down 0.18 percent against the Japanese yen at 140.18 after the country’s finance…


Dollar, European Stocks Steady With US Debt Deal in Focus

LONDON/SYDNEY—The U.S. dollar steadied after climbing to a two-month high and European stocks flattened on Tuesday as relief that a possible default by the U.S. government had been averted gave way to concern that the deal could face a rocky path through Congress. The U.S. dollar index and longer-dated U.S. Treasuries rallied as traders welcomed…


Indicators That Show the Recession Is Now

Commentary I’m not going to be one of those prognosticators who finds evidence of my predictions regardless of the facts. True, I said two months ago that the U.S. economy would be in a solid statistical recession by late summer. This is based on existing industrial trends and weakened labor markets at the high end…


European Shares Lack Momentum After Debt Ceiling Deal

LONDON—European stock indexes slipped slightly on Monday, lacking momentum in thin trade while optimism about the U.S. having reached a debt ceiling deal over the weekend kept Wall Street futures positive. U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal on Saturday to raise the federal government’s $31.4 trillion debt…


IMF Warns of Prolonged High Interest Rates, Urges Fiscal Tightening to Tackle Inflation

In a recent statement following its comprehensive assessment of U.S. policies, the International Monetary Fund (IMF) emphasized the need for the United States to maintain higher interest rates for an extended period to curb inflation. Additionally, the IMF urged Washington to adopt stricter fiscal measures to address the country’s mounting federal debt. Despite the U.S….


Chancellor Backs Interest Rate Hikes Even If They Risk UK Recession

Chancellor Jeremy Hunt has backed further interest rate hikes being used to rein in inflation even if they increase the risk of pushing the UK into recession. The Bank of England (BoE) has raised rates 12 times in a row to 4.5 percent from 0.1 percent in December 2021. The Consumer Prices Index (CPI) of…


Dollar Set for 3rd Week of Gains as US Debt Talks Loom Large

LONDON—The dollar eased on Friday but stayed on track for a third straight weekly gain, as markets raised bets on higher-for-longer interest rates to curb sticky inflation and nervously awaited resolution of last-ditch talks on the U.S. debt ceiling. Apparent progress on Thursday in the talks between President Joe Biden and top congressional Republican Kevin…


Investors Hold Their Breath as US Debt Talks Edge Towards Deal

LONDON—Global stock markets were muted on Friday, with investors holding their breath as the White House and U.S. lawmakers edged towards a deal on funding government spending to avoid an economy-shattering default. U.S. President Joe Biden and top congressional Republican Kevin McCarthy are closing in on an agreement that would raise the government’s $31.4 trillion…


Tight Labor Market and Stubborn Inflation Plague US Economy, Says Fed Governor

A top Federal Reserve official stated his support for more interest rate hikes as a tight labor market, persistent inflation, and uncertain credit conditions continue to threaten the U.S economy. Federal Reserve Governor Christopher Waller told the University of California Santa Barbara County Economic Summit on May 25 that the Fed should not stop raising…