monetary-policy
Top StoriesECB Pledges New Crisis Tool to Help Indebted Southern States
TradingDollar Eases Ahead of Fed Interest Rate Decision
InvestingStocks, Bonds Rally Before Fed Meet, ECB Move Buoys Mood
InvestingECB Brings Relief to Battered Bond Markets With New Tool
Euro Jumps as ECB Holds Unscheduled Meeting, Dollar Awaits Fed Move
Date: June 15, 2022
By Samuel Indyk LONDON (Reuters) – The euro jumped after the European Central Bank’s governing council said it would hold an unscheduled meeting on Wednesday to discuss the recent sell-off in government bond markets, hours ahead of a closely-watched meeting of the U.S Federal Reserve. The European common currency rose as to as high as...
Swiss Cut Economic Growth Forecasts, Citing War Risks and Inflation
Date: June 15, 2022
By John Revill ZURICH (Reuters) -Switzerland became the latest country to downgrade its economic growth forecasts on Wednesday, with the government warning risks stemming from the war in Ukraine and food and energy inflation have increased. The Swiss economy is expected to expand by 2.6% in 2022, the State Secretariat for Economic Affairs (SECO) said,...
Analysis-East Europe’s Next Inflation Problem: Wages Racing With Prices
Date: June 15, 2022
By Gergely Szakacs BUDAPEST (Reuters) – With prices surging, 24-year-old Noemi Turi presented her employer in Budapest with a pay request 16% above what she considered acceptable just a few months ago as double-digit inflation across East Europe fuels wage demands. The small business, where the Hungarian university student works as a social media manager...
Analysis-How It Came to This: The Fed and White House’s Slow Inflation Awakening
Date: June 15, 2022
By Howard Schneider and Heather Timmons WASHINGTON (Reuters) – President Joe Biden’s top officials and Federal Reserve Chair Jerome Powell were quick to dismiss the first embers of inflation in the spring of 2021 in a single word: Transitory. More than a year later, price increases at 40-year peaks have proven to be anything but,...
Analysis: For Central Bankers, Tighter Financial Conditions May Be an Ally
Date: June 15, 2022
By Tommy Wilkes and Dhara Ranasinghe LONDON (Reuters) – Slumping stocks and surging bond yields are rapidly crimping global financial conditions, yet given their effect on dampening economic growth and eventually inflation, the moves might be welcomed by the Federal Reserve and other central banks. Financial conditions is the umbrella phrase for how metrics such...
Analysis – Weak Pound and Forceful Fed Pressure Bank of England to Act Big
Date: June 14, 2022
By Andy Bruce LONDON (Reuters) – With Britain’s currency sinking and the U.S. Federal Reserve poised to raise borrowing costs aggressively, Bank of England policymakers may suddenly feel pressured to announce an outsized interest rate hike of their own this week. Even though Britain’s economy shrank unexpectedly in April and there were some signs of...