Fed Rate Increases to Persist Until Inflation Eases, Barkin Says

“Inflation should come down, but I don’t expect its drop to be immediate nor predictable,” said Barkin, who isn’t a voter on the rate-setting Federal Open Market Committee this year. “Significant shocks simply take time to evaporate,” he said, referring to the disruptions created by the Covid-19 pandemic, supply-chain snarls, and Russia’s invasion of Ukraine.

BOE Steps Back Into Bond Market to Restore Stability

The move was recommended by the Financial Policy Committee, amid fears of a “material risk” to financial stability if the dysfunction continued. “This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy,” the BOE said. It is not a monetary policy decision.

IMF Tells UK to ‘Re-Evaluate’ Tax Cut as Global Criticism Mounts

(Bloomberg) — The International Monetary Fund criticized the UK’s package of tax cuts and other steps as “untargeted” and said the measures are likely to increase inequality, weighing in after the plan sent the pound to a record low.

Traders More Worried by Liz Truss Than a Far-Right Win in Italy

Meloni’s party, Brothers of Italy, has its roots in the post-fascist movements of the late 20th century and Meloni herself has attacked the European Union, immigrants and LGBTQ rights on the campaign trail. When she spoke to her supporters gathered at a hotel in downtown Rome in the early hours of Monday however, she struck … Read more

This Is What Life’s Like in the World’s Strictest Covid Zero City

Seven times since last March, Ruili—on China’s Myanmar border—has felt the full force of Xi Jinping’s Covid Zero policy.

Liz Truss’s Historic Gamble With the UK Economy Is Already Unraveling

That’s reference to the ill-fated 1972 budget drawn up by Kwarteng’s Tory predecessor Anthony Barber. Barber, like Kwarteng, delivered a massive package of unfunded tax cuts which, in his case, saw the economy overheat and inflation soar before collapsing into recession. Barber’s boss, Edward Heath, was defeated by the Labor opposition two years later, and … Read more

UK’s Biggest Tax Cuts Since 1972 Trigger Crash In Pound, Bonds

Liz Truss’s government set out the most radical package of tax cuts for the UK since 1972, reducing levies both on worker pay and companies in an effort to boost the long term potential of the economy.

ADB Cuts Developing Asia Growth View on Slowing China Expansion

The region is seen expanding 4.3% this year, according to the bank’s Asian Development Outlook Update released Wednesday, compared with a 4.6% projection in July. Growth in China, the largest economy in Asia, is expected to be slower at 3.3% against a 4% expansion seen previously.

Fed Set to Reveal ‘Pain’ Coming in Next Stage of Inflation Fight

In June, the median policy maker’s projection for the unemployment rate called for a half-point increase, to 4.1%, by the end of 2024. Since then, monthly data on consumer prices have been disappointing: The latest report, published by the Labor Department on Sept. 13, showed inflation over the last year was still 8.3%.

The Global Race to Hike Rates Tilts Economies Toward Recession

(Bloomberg Businessweek) — Central banks are intent on driving the world economy perilously close to a recession. Late to see the worst inflation in four decades coming, and then slow to crack down on it, the Federal Reserve and its peers around the globe now make no secret about their determination to win the fight … Read more