What if the Fed’s own predictions are wrong?

The forecasts of the Fed governors will always paint a rosy picture. They are instructed to condition their vision on an optimal monetary policy, which naturally makes better results possible. In practice, as the past year has shown, policies are often far from that ideal, so actual results will usually be worse than forecasts suggest. … Read more

Rising interest rates and rising inflation are forcing Australians to look for new ways to make ends meet

There’s an old saying that central banks will raise interest rates in their fight against inflation “until something breaks”. That could lead to rising unemployment, falling asset prices or a general economic downturn. Falling inflation would of course also help to prevent further interest rate rises. The most recent data from the United States has … Read more

The US Federal Reserve is tightening monetary policy and this is likely to affect Australian households

Mortgage borrowers and renters may be plagued with higher monthly payments than even the most pessimistic forecasts currently suggest, and the Reserve Bank won’t be blamed. Instead, it is the US Federal Reserve that can absorb the wrath of Australian households. The reason is simple. The more the US Federal Reserve tightens its monetary policy, … Read more

Is Australia heading for a recession?

Is Australia heading for a recession? On Wednesday, the deputy governor of the Reserve Bank of Australia warned that the outlook for the global economy is not good. “It’s a bit on the cutting edge,” she said. Less than 48 hours later, the Bank of England said Britain was probably already in recession. There are … Read more

The warning signs: eight charts to watch as Canada flirts with recession

The Canadian economy is worsening on several fronts. The growth is slowing down. Jobs disappear in the labor market. And inflation is way too high. In turn, a growing number of domestic banks expect Canada to plunge into recession next year. The mood soured on Wednesday as the US Federal Reserve forecast that much higher … Read more

The loonie is at a low of almost 2 years. What does that mean for inflation? – National

As the Canadian madman falters against the rising US dollar, experts say the effect could exacerbate inflation on some goods imported from the south of the border. The Canadian dollar stands at 75 cents against the US dollar benchmark on Tuesday, a nearly two-year low for the loonie. Economists say there could be a few … Read more

Steep rate hike Fed seen as certainty after ugly inflation figures

Federal Reserve chairman Jerome Powell said policymakers must continue to act vigorously to address the raging price pressures that are weighing on American families. — AFP file photo Sunday 18 Sep 2022 13:45 MJT WASHINGTON, Sept. 18 — The Federal Reserve is poised to unleash another massive rate hike this week after the latest data … Read more

Fed raises US interest rate again by 75 basis points to fight inflation

Federal Reserve officials have raised interest rates by 75 basis points for the second straight month, triggering the most aggressive tightening in more than a generation to stem rising inflation — but at the risk of delivering a sharp blow to the economy. to get. Policymakers, facing the greatest price pressure in 40 years, on … Read more