Rogoff Says Markets Will Thwart Any Political Pressure on Fed
Harvard University economics professor Kenneth Rogoff said that financial markets would effectively impose restraint on any move by a US president to force the Federal Reserve into easing monetary policy. “If you take away Fed independence, investors are going to…
Kenya’s Ruto Lauds Zimbabwe’s ZiG as Boost to Economic Prospects
Kenyan President William Ruto hailed Zimbabwe’s gold-backed currency as a potential driver of economic recovery in the southern African nation. The introduction of the so-called ZiG demonstrated the authorities’ commitment to reviving the country’s economic fortunes, despite a a host…
The Fed Has Enough Pressure with Inflation Still High. Politicians Don’t Help.
As much as the Federal Reserve would prefer to avoid it, it appears that the U.S. central bank will be drawn into one of the most divided election campaigns in U.S. history. Two news stories appeared on Friday in separate…
Confounding US economic, inflation data muddy Fed’s rate path
By Howard Schneider (Reuters) – The Federal Reserve’s latest financial stability report was good news for anyone worried that a record run of interest rate hikes might overstress the banking system or trigger a recession with companies and households pushed…
Why the Fed’s keeping rates higher for longer may not be such a bad thing
With the economy humming along and the stock market, despite some recent twists and turns, hanging in there pretty well, it’s a tough case to sell that higher interest rates are having a substantially negative impact on the economy. So…
One spending ‘tailwind’ that maybe overlooked: Economist
Uncertainty has engulfed the Federal Reserve’s monetary policy path, with markets recalibrating their expectations in response to persistent high inflation data. RBC Capital Markets US Economist Michael Reid joined Yahoo Finance to discuss the his rate cut outlook. With new…
Australian Inflation Boosts Case for Higher-for-Longer Rates
Australia’s inflation came in faster than expected in the first three months of 2024, suggesting price pressures are proving stickier and bolstering the case for the central bank to hold interest rates at a 12-year high. Yields on the policy-sensitive…
German Rebound Drives Euro-Zone Private Sector to 11-Month High
Euro-area private-sector activity advanced to the highest level in almost a year, driven by a buoyant services sector and Germany’s return to growth. Data Tuesday showed S&P Global’s purchasing managers’ index increased to 51.4 in April, stronger than the 50.7…
Euro-Zone Consumers Increasingly Struggle to Pay for Housing
A rising number of euro-area consumers is struggling to pay for housing after years of above-target inflation and surging borrowing costs, according to European Central Bank research. The share of lower-income households expecting to make late payments for utilities or…
The Fed’s Forecasting Method Looks Increasingly Outdated as Bernanke Pitches an Alternative
The Federal Reserve is stuck in a mode of forecasting and public communication that looks increasingly limited, especially as the economy keeps delivering surprises. The issue is not the forecasts themselves, though they’ve frequently been wrong. Rather, it’s that the…