A recession-free landing for the Fed may be harder now.
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The Fed’s decision to raise rates is likely to put more pressure on regional banks, which will make it harder to avoid a recession.
Fed chair Jerome Powell opted for a cautious approach on rates.
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The Fed raised rates by a quarter-point – less aggressive than had been expected before the current banking crisis, but signaling inflation is still its focus.
Decision time: Jerome Powell, chair of the Federal Reserve.
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The two central banks were due to raise rates aggressively, but then came the banking crisis.
Just hold your nose and make a decision.
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Big interest rate hikes could cause more market turmoil, while doing too little could have the same effect.
Not for turning: ECB President Christine Lagarde.
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The banking crisis has been caused by the interest rate rises, and further hikes were supposed to be a no no.
The cracks in the financial system are growing.
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The Fed, Treasury and FDIC acted swiftly to protect depositors and stem any panic, but anxiety continues to grow about the state of the global financial system.
Fed Chair Jerome Powell has a tricky job in balancing inflation fears with recession fears.
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The latest consumer prices report shows cost of living is still rising far above the Fed’s target. But don’t expect monetary policymakers to aggressively hike rates.
Signature Bank collapsed at lightning speed.
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Lenders face a lot of risks, but two of them – interest rate and liquidity – were the main drivers of the sudden and rapid failure of Silicon Valley Bank and Signature Bank. That’s why more trouble may be ahead for the banking sector.
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The speed of SVB’s collapse was a surprise but central bankers can learn lessons from this failure.
SVB encountered a perfect storm of high interest rates and fearful clients.
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SVB, as it’s known, collapsed with lightning speed following a run on its deposits.
Is strong hiring fanning the flames of inflation?
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The Fed has been trying to tame employment and wages to keep inflation in check. It ain’t working.
Central banks have been signalling that rate rises are going to get more aggressive again, but can the economy actually take it?
Markets reacted positively to Fed Chair Powell’s acknowledging “disinflation” is happening.
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The Fed lifted its benchmark interest rate just 0.25 percentage point following a series of much more aggressive rate hikes in 2022.
Putting your money where his mouth is.
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The US spent $213 billion paying interest on the national debt in the fourth quarter of 2022 as the Fed jacked up borrowing costs at an unprecedented pace.
Calculating the cost of living in the country.
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The rising cost of living doesn’t hit all Americans equally. Yet the benchmark figure for charting the rising cost of living excludes people in rural areas.
Many countries are dealing with a rapidly rising cost of living.
January 6, 2023
Alan Shipman, The Open University; Aymen Smondel, IAE Nice - Université Côte d'Azur; Bhima Yudhistira Adhinegara, Center of Economic and Law Studies (CELIOS); John W. Diamond, Rice University; Luis Garvía Vega, Universidad Pontificia Comillas; Mohamad Hassan Shahrour, IAE Nice - Université Côte d'Azur; Peter Martin, Crawford School of Public Policy, Australian National University, and Wayne Simpson, University of Manitoba
Price inflation has hit countries differently, but most central banks and governments are concerned about the rising cost of living in 2023.
This could get ugly.
Central banks are raising interest rates to tame inflation, but 2023 will increasingly turn a technical decision into a political challenge.
Although a recession is likely on the horizon, it’s uncertain how deep it might go.
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Although many say the economic outlook for next year appears bleak, there is room for optimism.
Homebuyers are receiving something of a holiday gift in falling mortgage costs.
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The cost of borrowing for a home has fallen in recent months, despite repeated increases of the benchmark interest rate. An economist explains the seeming paradox.
Unbearable pressure: Fed Chair Jay Powell.
Central bankers are set to slow down their rate hikes.