Can Powell Tame Inflation and Keep the Market Happy?

The Federal Reserve is losing control over the inflation narrative

Jim Caron, head of macro strategies for global fixed income at Morgan Stanley Investment Management, warns of potential volatility in the market due to potential misinterpretations of Powell’s comments. Investors will be closely monitoring Powell’s outlook on the economy, with economists forecasting a potential recession and the Fed projecting slow growth and a rise in … Read more

Will Easy Credit and Rising Stocks Hinder the Fed’s Inflation Fight?

inflation on the rise

Could Overly Easy Credit and a Soaring Stock Market Threaten the Fed’s Fight Against Inflation? As the Federal Reserve kicks off its two-day meeting, stocks continue to rally, with the S&P 500 ending January with a gain of 6.2%. The tech sector performed even better, with a 9.2% increase in the same period. Meanwhile, interest … Read more

Federal Reserve Expected to Raise Interest Rates and Signal Continued Vigilance against Inflation

Federal Reserve Board Chairman Jerome Powell speaks during a news conference in Washington, DC, on July 27, 2022

The Federal Reserve is predicted to increase interest rates by a quarter of a percentage point and also likely indicate that it will continue to remain cautious in its efforts to combat inflation, even as it decreases the magnitude of its hikes. On Wednesday at 2 PM ET, the Fed will announce its latest rate … Read more

Barclays Upgrades Global Growth Forecast to 2.2% in 2023: Positive Data Surprises and China’s Reopening Drive Optimism

European Central Bank Eurosystem

The global economy is showing signs of improvement, with economists upgrading their previously gloomy outlooks. Last week, data releases revealed a slowdown in inflation and less severe downturns in activity. This prompted Barclays to raise its global growth forecast to 2.2% in 2023, an increase of 0.5 percentage points from its last estimate. China’s reopening … Read more

Argentina Raises Interest Rate to 69.5%

Argentina 100 Pesos

Argentina is out of options. I reported on the ongoing widespread protests occurring across the country. The majority of the nation is unemployed, and the currency is basically worthless. The people can no longer rely on the socialistic promises as the government is unable to fund its programs. Basic necessities are no longer available, and the people … Read more

The Fed could surprise markets by sounding even more aggressive as economy teeters

Federal Reserve chair Jerome Powell

The Federal Reserve is widely expected to raise interest rates by another three-quarters of a point Wednesday, and it could surprise markets by sounding even more unrelenting about tightening policy. That means the Fed would sound “hawkish,” or in a mode where it is bent on raising interest rates as much as it needs to … Read more

Mortgage demand drops to a 22-year low as higher interest rates and inflation crush homebuyers

House US Real Estate

The pain in the mortgage market is only getting worse as higher interest rates and inflation hammer American consumers. Mortgage demand fell more than 6% last week compared with the previous week, hitting the lowest level since 2000, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications for a mortgage to purchase a home … Read more