Why the Federal Reserve won’t rush to relax its fight against inflation

Jerome Powell, Chairman of the US Federal Reserve, speaks during a Fed Listens event in Washington, DC, USA, on Friday, September 23, 2022. This week, Federal Reserve officials gave their signal clearest so far that they are willing to tolerate a recession as the necessary trade-off to regain control of inflation. To Drago | Mayor … Read more

How the richest person in Asia gave Bezos a run for his money

Gautam Adani has had a very good year. The Indian billionaire briefly overtook Amazon founder Jeff Bezos to become the world’s second-richest person in September, according to Bloomberg. He is now ranked as the fourth richest person in the world. Outside of Southeast Asia, Adani is not a household name. That could be changing now … Read more

‘The Fed is breaking things’: Here’s what has Wall Street on edge as risks mount around the world

Jerome Powell, Chairman of the US Federal Reserve, during a Fed Listens event in Washington, DC, USA, on Friday, September 23, 2022. To Drago | Mayor Bloomberg | fake images As the Federal Reserve ramps up efforts to rein in inflation, sending the dollar higher and bonds and stocks plummeting, concerns are mounting that the … Read more

3 charts showing the collapse of the UK market

The so-called “mini-budget” of the new UK government on Friday triggered level market volatility not seen in the country since the Covid collapse or the Great Financial Crisis. A package of tax cuts expected to total £45bn over the next few years, combined with a massive increase in spending to help households and businesses deal … Read more

The ‘real cure’ for inflation has been ignored, says Steve Forbes

Sterling fell to a record low on Monday morning in Asia, following last week’s announcement by the new UK government that it would implement tax cuts and investment incentives to boost growth. By focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of keeping currencies stable, said Steve … Read more

From the Fed to Europe’s currency crisis, here’s what’s behind this sell-off in financial markets

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened on Friday as investors heeded a signal from the Federal Reserve that its battle against inflation could result in much higher interest rates and a recession. Friday’s sell-off was global, in a week … Read more

British Pound Plunges, Bonds Plunge After Tax Cut Announcement

The British pound hit its lowest level since July 1, 2020. Matt Cardy | fake images The embattled pound sterling fell 2.5% against the dollar on Friday, after the new UK government announced a sweeping economic plan in a bid to boost growth. Sterling had fallen as low as $1.0975 by 3:35pm London time, extending … Read more

Analysts discuss US interest rates, the dollar and the Asian financial crisis

The world economy may be facing conditions seen during the 1997 Asian financial crisis: aggressive US interest rate hikes and a strengthening US dollar. But history is unlikely to repeat itself, the analysts said, although they warn that some economies in the region are particularly vulnerable to currency devaluations reminiscent of the era. On Wednesday, … Read more

Turkey cuts interest rates again as the country battles inflation

Russian tourists to Europe dropped sharply over the summer, but increased to several other destinations, including Turkey (here). Onur dog man | soup images | Light Rocket | fake images Turkey’s central bank surprised markets yet again with its decision on Thursday to cut its key interest rate, despite inflation in the country topping 80%. … Read more

Asia’s developing economies will grow faster than China’s

Chinese workers working on a construction site at sunset in Chongqing, China. fake images Asia’s developing economies may be showing signs of recovery, but the Asian Development Bank (ADB) slashed its growth forecasts once again, thanks to China’s long-running zero-Covid policy. But this will be the first time in more than three decades that the … Read more