Analysts at JP Morgan have predicted an 85 percent chance that the United States will enter a period of recession based on the decline in the S&P 500. During the past 11 recessions, the S&P 500 declined by an average of 26 percent. In the current year, the index has fallen 20 percent from its…
Chances of US Recession at 85 Percent, S&P Has Fallen 20 Percent From High in 2022: JP Morgan
Capitol Report (June 15): GOP Flips South Texas Congressional Seat; Biggest Rate Hike in 28 Years
The Federal Reserve raised its key interest rate by three quarters of a percent, the largest rate hike in 28 years. Gas prices are averaging over $5 a gallon. The White House is now calling on oil companies to increase capacity for less profit. The oil industry is striking back, pointing to what they call…
European Central Bank Promises ‘Flexibility’ in Managing Balance Sheet Amid Debt Crisis Fears
June 15, 2022
admin
Business & MarketsECB - European Central BankeconomyEU debt crisisEuropeeurozone bond fragmentationinterest rate hikeMarketsWorld
0 Comment
The European Central Bank (ECB) tried to calm fears of a debt crisis following an emergency policy meeting on June 15 by promising “flexibility” while managing its huge balance sheet, as well as creating a new tool to tackle the risk of eurozone bond fragmentation. During a meeting the previous week, the ECB stated that…
Fed Official Says 0.75 Point Interest Rate Hike Cannot Be Ruled Out
Cleveland Federal Reserve Bank President Loretta Mester recently said that she can’t rule out the possibility of a 75-basis-point interest rate hike by the Federal Reserve, depending on where inflation is heading. “We don’t rule out 75 forever, right? The cadence we’re going now seems about right to me,” Mester said during a May 10…
European Central Bank Pledges to End Bond Buying Soon
April 14, 2022
admin
Business & EconomyChristine LagardeECB - European Central Bankeconomic policieseconomyEuropeeuropean inflationinterest rate hikeWorld
0 Comment
The European Central Bank (ECB) has pledged to end its bond-buying activities in a few months as the region battles high inflation rates. After looking at data since its previous meeting, the Governing Council, the main decision-making body of the ECB, judged in an April 14 meeting that net asset purchases under its asset purchase…
New Zealand Central Bank Hikes Interest Rates by Highest in Over Two Decades
April 13, 2022
admin
Asia & PacificBusiness & Economyeconomic policieseconomyinflationinterest rate hikenew zealand inflationReserve Bank of New ZealandWorld
0 Comment
The Reserve Bank of New Zealand (RBNZ) has raised its official cash rate (OCR) by 50 basis points to 1.5 percent, its biggest such increase in 22 years amidst concerns about surging inflation. RBNZ’s Monetary Policy Committee decided on April 13 that it was best to tighten monetary conditions at a speed that will support…
The Pros and Cons (Mostly Cons) of the Interest Rate Increase
On March 16, money became more expensive. Any time you buy something on credit, you are essentially “buying” money. You agree to pay that money back over time, but often pay interest on that borrowed money. The interest rate for that borrowing is determined using the federal reserve benchmark rate as a starting point. From…
Cleveland Fed’s Mester Calls for Frontloading Rate Hikes, Sees Rise to 2.5 Percent in 2022
March 24, 2022
admin
Business & EconomyClevelandeconomic policieseconomyFederal Reserve bankinflationinterest rate hikeLoretta MesterMarkets
0 Comment
Cleveland Federal Reserve Bank President Loretta Mester on Tuesday said she would like to raise interest rates to about 2.5 percent by year end, with bigger rate hikes in the first half, and further tightening next year to bring down high inflation and keep it from getting entrenched. “I find it appealing to front-load some…
Fed’s Slow Pace on Interest Rate Hikes Will Lead to More Inflation and Then Recession
Commentary At their March meeting, the Federal Reserve decided to raise interest rates a meager 0.25 percent. That hike will do little to head off the upcoming double-digit price increases that will begin before summer starts. The Fed’s shockingly irresponsible behavior will do little to reduce inflation. And because of their weak position, when they…
Global Response by Central Banks to Ukraine Crisis Not Required: Head of Australian Reserve Bank
March 13, 2022
admin
AustraliaAustralian petrol pricesEuropeinterest rate hikephilip loweReserve Bank of AustraliaRussia-Ukraine WarWorld
0 Comment
The governor of the Reserve Bank of Australia (RBA), Phillip Lowe, doesn’t believe a global coordinated financial response to the Ukraine conflict is required. Lowe said that while central banks worked closely together during the Global Financial Crisis, the current situation was entirely different. “[They worked together in the GFC] because financial markets had frozen…
US News
RSS Error: A feed could not be found at `https://www.theepochtimes.com/c-us/feed`; the status code is `200` and content-type is `text/html; charset=utf-8`