Interest rates: European Central Bank sets record hike to fight inflation

London CNN Business — The European Central Bank raised interest rates by a record three-quarters of a percentage point on Thursday and promised more action to come as it struggles to contain the inflationary fallout of the invasion of Ukraine by Russia and the ensuing energy crisis. This decision will bring the reference rate of … Read more

Economist predicts recession ‘whopper’ in 2023 – and it’s not necessarily due to higher interest rates

Financial market investors fear the United States is on the brink of an economic slowdown as central bankers in Jackson Hole reaffirmed their determination to raise interest rates to tame inflation. Steve Hanke, a professor of applied economics at Johns Hopkins University, said he believes the United States is heading into a recession next year, … Read more

Fed Chief Powell ‘did what he had to do’ in Jackson Hole, says Larry Summers

“ “The Fed is positioned as well as it can be – given the credibility losses and mistakes that have been made – with these remarks to handle things going forward.” ” —Larry Summers On Friday, former US Treasury Secretary Lawrence Summers praised the Federal Reserve, saying Fed Chief Jerome Powell’s latest pledge to contain … Read more

Stock market today: Dow drops after Powell’s hawkish remarks

Text size Fed Chairman Jerome Powell’s speech hovered over markets all week. Drew Angerer/Getty Images The stock market was selling off on Friday, as Federal Reserve Chairman Jerome Powell makes belligerent remarks on monetary policy at the annual symposium in Jackson Hole, even in the face of falling inflation. The Dow Jones Industrial Average lost … Read more

Financial markets brace for what could be a ‘very hawkish’ Jackson Hole speech from the Fed’s Powell

Financial markets are bracing for Friday’s highly anticipated Jackson Hole speech by Federal Reserve Jerome Powell and expect him to signal the continued need for aggressive interest rate hikes to fight inflation despite the risks for economic growth. That’s the general conclusion of analysts, economists and investors on the eve of Powell’s remarks, a day … Read more

Disappointing US data prompts traders to consider possible Fed half-point rate hike in September

In the blink of an eye on Tuesday, the U.S. bond market’s focus shifted to fears of a sharp and unexpected economic slowdown and away from persistently high inflation for most of the day. negotiation. This shift in sentiment came after data showed the U.S. new home sales plunged in July to its lowest level … Read more

Dow: Stocks fall on fear of another big Fed rate hike

New York CNN Business — We might as well hope that the Federal Reserve will rein in its aggressive interest rate hikes. Shares fell on Monday as investors began to fear again that the central bank could raise rates by three-quarters of a point next month. The Dow ended the day with a loss of … Read more

Dow drops more than 500 points, S&P 500 loses 1.7% as investors question Fed pivot thesis

US stocks slid on Monday on fears that the recent rally was based on an overly optimistic view about the Federal Reserve’s potential to back away from using sharply higher interest rates to fight inflation. How are stocks traded? The S&P 500 SPX, -1.86% fell 71 points, or 1.7%, to 4,156. The Dow Jones Industrial … Read more

Will the stock market rally turn into a clearance sale? This bond market gauge could alert investors

Now that the Federal Reserve seems to have given up its foresight tool in favor of being “data dependent” to help inform its future path for rates, investors should keep an eye on this gauge of inflation expectations for signs of a shift in market sentiment. Watch the five-year breakeven inflation rate, one of the … Read more