“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.
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.
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
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
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%.
(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