Fed Vice-President Brainard Warns Against Early Withdrawal From Inflation Battle

US Federal Reserve board member Lael Brainard speaks after being nominated by US President Joe Biden as vice chairman of the Federal Reserve, in the South Court Auditorium of the Eisenhower Executive Office Building in the White House in Washington, US, on 22 Nov 2021. Kevin Lamarque | Reuters Vice Chairman of the Federal Reserve, … 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

Stanley Druckenmiller sees ‘hard landing’ in 2023 with possible deeper recession than many expect

Billionaire investor Stanley Druckenmiller believes the Federal Reserve’s attempt to quickly resolve the excesses it has built up over a decade with accommodative monetary policy will not end well for the US economy. “Our pivotal case is a hard landing towards the end of ’23,” Druckenmiller said Wednesday at CNBC’s Delivering Alpha Investor Summit in … Read more

Prices for these staple items are rising even more in Canada, but for a new reason

While most Canadians have been financially overstretched in recent months, prices for many more basic household necessities are about to climb even higher, but not just because of inflation rates (which are finally starting to slow their upward trajectory, but still more than double the long-term average). Experts are now warning that the depreciating value … 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

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

From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

2-Year Treasury surpasses 4.2%, 15-year high as Fed drives up short-term rates

Yields moved higher on Friday, with the 2-year Treasury yield reaching a new 15-year high as markets assessed the latest Federal Reserve rate hike and what it means for the economy going forward. The policy-sensitive 2-year Treasury hovered above 4.2%, reaching a 15-year high of 4.266% earlier in the session. It last gained 12 basis … Read more

Turkey cuts interest rates again as country struggles with inflation

The number of Russian tourists to Europe dropped dramatically during the summer, but rose in several other destinations, including Turkey (here). Onur Dogman | Sopa images | Light rocket | Getty Images Turkey’s central bank surprised markets again with its decision Thursday to cut its key interest rate, despite inflation in the country soaring above … Read more

Fed hike, Bank of Japan, interest rates, currencies

Japanese Yen Strengthens Amid Reports Of Official Announcement Of FX Intervention The Japanese yen rose more than 2% against the dollar on reports from officials announcing immediate intervention to defend the currency. That comes after the yen weakened to 145 levels against the greenback, following the Bank of Japan’s decision to keep interest rates stable. … Read more