Tag: Economy

  • Fed’s Powell versus inflation versus the markets

    Fed Chairman Jerome Powell at yesterday’s press conference. Photo: Alex Wong/Getty Images On Wednesday afternoon, the Federal Reserve not only raised interest rates for the ninth consecutive time in the face of a banking crisis. It also confirmed that its plans for the year remain more or less intact and that almost all of its […]

  • Financial instability as the biggest market risk: Wells Fargo

    A major Wall Street firm ranks financial instability over inflation as the biggest economic risk for the next three months. In an interview following the Federal Reserve’s quarter-point rate hike, Michael Schumacher of Wells Fargo Securities suggested that policymakers are underestimating how quickly tightening credit conditions could hurt the economy. “The Fed doesn’t give enough […]

  • 5 things you need to know before the stock market opens on Wednesday, March 22

    The Fed is expected to raise its benchmark rate. Google releases its AI product Bard for testing. Nike sees momentum in China after Covid-induced slump. Here are the most important news items investors need to start their trading day: The decision day has arrived. Will the Federal Reserve raise its reference rate by another quarter […]

  • US Treasury Bond Yields Ahead of Fed Interest Rate Decision

    US Treasury yields fell on Wednesday as investors awaited the Federal Reserve’s latest interest rate decision and central bank monetary policy guidance. At 5:48 a.m. ET, the 10-year Treasury yield was down 2 basis points to 3.587%. The 2-year Treasury was trading at 4.134% after falling about 4 basis points. Yields and prices move in […]

  • Euro pushes higher as ECB chief Lagarde says inflation is still too high

    Christine Lagarde, President of the European Central Bank (ECB), announces a new monetary policy decision. Frederik Florin | Afp | Getty Images The euro was seen trading higher against the US dollar on Wednesday following comments from European Central Bank President Christine Lagarde that inflation is “still high”. The euro rose about 0.2% against the […]

  • UK inflation breaks 3-month decline with surprise rise to 10.4%

    UK inflation data paints a picture of the UK economy. Bloomberg/Contributor/Getty Images UK inflation unexpectedly spiked in February as food and utility bills continued to rise, putting further pressure on households. The consumer price index (CPI) rose 10.4% annually, above the consensus forecast of 9.9% among economists in a Refinitiv poll and up from 10.1% […]

  • Gold price could run high amid SVB, Credit Suisse, banking troubles

    The gold price has more room to rise and could reach as high as $2,600 an ounce. Investors are turning to gold and government bonds after the collapse of Silicon Valley Bank and Credit Suisse’s troubles. According to Refinitiv data, the all-time high in gold was $2,075 in August 2020. Investors are flocking to gold […]

  • TSLA, FRC, UBS, FL and more

    A vehicle charges at a Tesla Supercharging station in Corte Madera, California, USA on Thursday, March 2, 2023. David Paul Morris | Bloomberg | Getty Images Check out the companies making the biggest strides in premarket trading: Tesla – The electric vehicle maker rose 2% after Moody’s gave it a Baa3 rating and removed its […]

  • Finance Minister Yellen says the government can hold back more deposits if necessary

    U.S. Treasury Secretary Janet Yellen testifies before the Senate Finance Committee on the proposed 2024 budget request, on Capitol Hill in Washington, DC, March 16, 2023. Andrew Caballero Reynolds | Afp | Getty Images Treasury Secretary Janet Yellen said on Tuesday that the government is ready to provide further deposit guarantees if the banking crisis […]

  • What happens during a ‘credit crunch’ and how to prepare for it

    A credit crisis is a sharp tightening of credit conditions at banks. Loans are harder to get and more expensive. The banking crisis caused by the failures of Silicon Valley Bank and Signature Bank is likely to lead small and medium-sized institutions to prioritize healthy balance sheets. The prospect of a recession caused banks to […]