UK tax cut turns to politics, not economics, analysts say

LONDON – The UK government’s withdrawal from cutting the top income tax rate is due to political optics and will not reassure market timidity about its economic plan, analysts told CNBC on Monday. The tax cut, which Prime Minister Liz Truss defended a few hours earlier, is said to have abolished a 45% rate paid … Read more

Turkey inflation reaches 83%; Erdogan vows to continue cutting tariffs

Exchange rate information at an exchange office in Istanbul, Turkey, in June. Inflation for the country of 84 million people has soared in the past two years, especially as Turkish President Recep Tayyip Erdogan insists on continuing to lower interest rates rather than raise them — a departure from the conventional way of controlling inflation. … Read more

‘Painfully slow capitulation’: why investors continue to misunderstand inflation

A brutal third quarter in financial markets came to an end on Friday and one thing is overwhelmingly clear: inflation is currently the main factor driving asset valuation and yet few, if any, are able to accurately predict where it will go. The reason? Professional forecasters, policymakers and traders continue to dismiss the way inflation … Read more

‘The Fed Is Breaking Things Up’ – Here’s What Is Putting Wall Street On The Edge As Risks Grow Across The Globe

Jerome Powell, chairman of the US Federal Reserve, at a Fed Listens event in Washington, DC, US, on Friday, September 23, 2022. Al Drago | Bloomberg | Getty Images As the Federal Reserve ramps up its efforts to tame inflation, sending the dollar soaring and sending bonds and stocks into a tailspin, concerns are mounting … Read more

Erdogan says Turkey will continue to cut interest rates, mocking the British pound

Turkish President Tayyip Erdogan addresses members of his ruling AK Party (AKP) during a meeting in parliament in Ankara, Turkey, May 18, 2022. Murat Cetinmuhurdar/Presidential Press Office/Handout via REUTERS THIS IMAGE IS PROVIDED BY A THIRD PARTY SIDE. NO RESALE. NO ARCHIVES. MANDATORY CREDIT Murat Cetinmuhurdar Reuters Turkey will continue to cut interest rates, its … Read more

Fed’s Evans nervous about going too far and too fast with rate hikes

Charles Evans, president of the Federal Reserve of Chicago, says he is concerned that the US central bank is raising interest rates too quickly in its efforts to tackle runaway inflation. Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Evans said he remains “cautiously optimistic” that the US economy can avoid a recession – provided … Read more

British pound crashes to all-time low as a warning for Australia

The British pound has plunged to its all-time low on a catastrophic day for the British currency, a major warning sign for Australia. As the following chart shows, the pound has taken a massive blow in recent months and completely capitulated on Monday, Australian time. It crashed to even lower levels than the dark days … Read more

The ‘real cure’ for inflation has been ignored, says Steve Forbes

The British pound plunged to a record low in Asia on Monday morning, following last week’s announcement by the new British government that it would implement tax cuts and investment incentives to boost growth. By focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of maintaining stable currencies, … Read more

Britain’s jump to Reaganomics gets thumbs down from the markets

Truss has now set the country on an economic path that is completely at odds with most, if not all, of the major global economies. Hannah Mckay | Reuters LONDON — New British Prime Minister Liz Truss may have talked a lot about ‘trickle-down economics’ during her campaign this summer, but no one could have … Read more

British pound plunges, bonds fall after tax cut announcement

Sterling hit its lowest level since July 1, 2020. Matt Cardy | Getty Images The controversial British pound fell 3.5% against the dollar on Friday after the new British government announced a radical economic plan to boost growth. Sterling had fallen to $1,084, exacerbating the loss it made after the measures were unveiled in London … Read more