Thursday, May 2

Tag: inflation

Fed Comes Under Pressure As Inflation Persists
30Nov By Patti MohrNo Comments
Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief, Types of News: Videos

Fed Comes Under Pressure As Inflation Persists

Fed Chair Says Inflation Now Likely To 'Linger Well Into Next Year' November 30, 2021—After months of downplaying inflation as a temporary condition, U.S. Federal Reserve Board Chair Jerome Powell said inflation has now spread much more widely beyond the sectors impacted by supply chain bottlenecks. 'Transitory' No More "I think it's probably a good time to retire that word and explain what we mean," Powell told senators at a Banking Committee hearing. Surging Economic Growth The U.S. economy is now growing at 5 percent, which is the "fastest pace in many years," Powell said. Meanwhile, the unemployment rate is down to 4.6 percent. Asked by Sen. Jack Reed, D-R.I., about the drop in the U.S. labor participation rate, Powell said fears about the pandemic are the likely cause....
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High Food Prices Fueling Humanitarian Crises Worldwide
21Nov By Ramsha ZubairiNo Comments
Foreign Aid, International Development, Types of News: Brief

High Food Prices Fueling Humanitarian Crises Worldwide

WFP Director David Beasley makes plea for funds.Photo: WFP As Inflation Impacts The World, Aid Organizations Are Struggling To Meet The Needs Of The Hungry November 21, 2021—Aid agencies like the UN World Food Programme are making a desperate plea for funds this year to feed the hungry amid rising fuel and food prices and drought-related shortages. Almost 283 million people face acute food shortages or are at high risk in 80 countries in 2021, according to the UN World Food Programme. The agency warned that 45 million people across 43 countries are at risk of famine. The number of people at risk increased from 42 million earlier this year and 27 million in 2019. “Tens of millions of people are staring into an abyss. We’ve got conflict, climate change and COVID-19 driving up t...
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Inflation Issues ‘Fade Away,’ ECB Says
28Oct By Patti MohrNo Comments
Europe, EU, Eurozone, Global Economics, Types of News: Brief

Inflation Issues ‘Fade Away,’ ECB Says

European Central Bank Keeps Stimulus Policy Despite Rising Prices October 28, 2021--The European Central Bank decided to keep its emergency purchase program in place, even though the economy is recovering and prices are rising. The decision lets the central bank continue its policy of purchasing financial assets and keeps interest rates in negative territory. That is in spite of an inflation rate of 3.4 percent, which is higher than the target of 2 percent. The Euro's short-term interest rate hovers below zero at -0.573 percent. Meanwhile, the 10-year government bond is also in negative territory at -0.16 percent. The EBC dismissed rising inflation, saying, "This is mainly because oil, gas and electricity prices have gone up a lot and demand is rising faster than supply. But we e...
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Inflation Jumps to 4.2 Percent in the United States
12May By Patti MohrNo Comments
Global Economics, Types of News: Brief

Inflation Jumps to 4.2 Percent in the United States

May 12, 2021--After months of speculation by economists and analysts about the potential for inflation in the United States, new government data shows the concerns were legitimate. Inflation in April rose to 4.2 percent, up from 2.6 percent in March. Moreover, it is the largest 12-month increase since 2008. It's a sign that the U.S. spending spree in the midst of the global pandemic may be hitting a wall. Further exacerbating problems are supply shortages in everything from labor to semiconductors to hot dogs. Highest Rising Prices The energy sector, in particular, draws attention as prices of oil and gas spiked. But even setting aside prices in food and energy, inflation nearly doubled, from 1.6 percent in March to 3 percent in April. Consumers found the highest rising ...
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Market Correction Could See 40 Percent Drop, JP Morgan Exec Says
8Mar By Patti MohrNo Comments
Finance, Investing, Global Economics, Types of News: Brief

Market Correction Could See 40 Percent Drop, JP Morgan Exec Says

March 8--Although equity markets are still in a growth cycle, an eventual correction could mean a decline of 20 to 40 percent, according to a top executive at JP Morgan Chase & Co. "Markets are functioning, and we're doing well," Daniel Pinto, JP Morgan Co-President and Co-Chief Operating Officer, said in an interview with Bloomberg Television on Thursday. "We know there will be a correction at some point." Pinto estimated that the markets have two to three years before the end of the growth cycle. He said that while volatility has come down, markets are still going to react to "anything that relates to inflation or growth." Eventually, when liquidity dries up, markets could fall as much as 40 percent. "The most important thing for someone like us is just to be prepared. Be...
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