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

Asset class poised to rise 38% as markets overestimate risk of global recession, Goldman says

Still reeling from Fed Chairman Jerome Powell higher ratings for longer last weeka riskier asset like equities is set to take another hit on Monday. “You can’t see the stock market crashing more than 5% on the words of one man,” grumbled FWDBONDS chief economist Chris Rupkey, who sees a major credibility problem for the … Read more

The Fed’s Powell triggered a 1,000 point rout in the Dow Jones. Here’s what investors should do next.

Now might be a good time to consider hiding in short-term Treasuries or corporate bonds and other defensive parts of the stock market. On Friday, Federal Reserve Chairman Jerome Powell spoke of a willingness to inflict “a bit of pain” on households and businesses in an unusually blunt speech from Jackson Hole that hinted at … 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

US stocks generally up as strong economic data bolsters sentiment ahead of Powell speech

U.S. stocks traded mixed midday on Thursday, with the S&P 500 and Nasdaq Composite heading for back-to-back gains after a string of strong economic data as investors awaited news from Federal Reserve Chairman Jerome Powell. How Stocks Trade S&P500 SPX rose 18 points, or 0.4%, to 4,158. Dow Jones Industrial Average DJIA lost 3 points, … Read more

US stocks climb as strong economic data bolster sentiment ahead of Powell speech

U.S. stocks rose on Thursday, with major benchmarks heading for back-to-back gains after a string of strong economic data as investors awaited news from Federal Reserve Chairman Jerome Powell. How Stocks Trade S&P500 SPX rose 18 points, or 0.6%, to 4,163. Dow Jones Industrial Average DJIA advanced 22 points, or 0.1%, to 32,984. Nasdaq Compound … Read more

US housing market ‘in much worse shape’ than Fed admits: economist

The Federal Reserve’s policy tightening has sent the US housing market into a slump – and policymakers have yet to fully recognize the scale of the problems, according to a leading economist. Ian Shepherdson, chief economist at Pantheon Macroeconomics, provided a bearish outlook for homeowners after federal data showed sales of new single-family homes bottomed … Read more

Home prices plunge in ‘pandemic boom towns’ as market crashes

Landlords in markets that boomed when the real estate sector was hot during the COVID-19 pandemic are now being forced to cut prices due to falling demand, according to data released Monday by Redfin. Salt Lake City is among the most overheated markets.Getty Images In the United States, 21% of home sellers lowered their asking … Read more

Watch out for a ‘bear trap’ stock pullback after big summer rally, strategists warn

It looks like a “bear trap” may be lurking in this summer’s big rebound for the stock market, which could lead to painful losses for investors, Glenmede strategists warned in a Monday report. Investors are already appearing reconsider some factors of the strong rebound this summer, including rethinking hopes that the Federal Reserve might not … Read more