Priority #1 is still fighting inflation. Despite all the chaos in the banking sector this week, the European Central Bank (ECB) raised interest rates by 0.50 percentage points yesterday. But rising rates (+ poor risk management) is what nearly created a financial catastrophe in the first place. It’s already painful, so why would central banks…
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Fed Chair Jerome Powell Delivers Words No One Wants to Hear
Sick of rising interest rates yet? Better get cozy because there’s a lot more where they came from. Yesterday, Fed Chair Jerome Powell delivered words that broke investors more than Joel’s final words, “it’s okay baby girl, I got you,” did to The Last of Us viewers. Difference is JPOW doesn’t got us. In his…
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Fed Chair Jerome Powell raises rates by 0.25 percentage points
Queue Succession Main Title soundtrack. Power. That’s what Fed Chair Jerome Powell must feel right before he announces rate hikes. Yesterday, JPow raised rates by 0.25 percentage points — bringing the target to 4.50 to 4.75%. No surprises here. This is lower than the 0.50 percentage point hikes we got in December or the four…
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Here are the takeaways from the Fed rate hike; what should you expect next meeting?
As expected, we got another 0.75 percentage point increase from the Fed yesterday — the fourth consecutive increase of such size. Markets whipsawed — rising after the initial hike announcement just to finish the day down. Parsing JPow’s words Investors analyzed every word from Fed Chair Jerome Powell to understand what he’ll do at the…
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Canada caved into the pressure of slowing growth
Yesterday, the Bank of Canada (BoC) raised its benchmark interest rate by 0.50 percentage points — following a 1 and 0.75 percentage point raise in the past two meetings. It’s a shocking decision. Markets had expected a 0.75 percentage point hike. Inflation is guiding decisions on how much to raise by: Inflation in Canada remained…
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Watch famous Wharton Professor tear the Fed apart
That’s Wharton Professor of Finance Jeremy Siegel, famous economist and Fed critic. In a CNBC interview, he tore the Fed apart in a heated rant — criticizing their decisions over the past three years. “Poor monetary policy would be an understatement.” He thinks the Fed made two major mistakes: The first: The Fed didn’t raise…
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Fed gets aggressive with rate hike expectations
Exactly what happened again. Except this time, markets began crashing at 3 PM in reaction to Fed Chair Jerome Powell’s aggressive comments. As most expected, the Fed raised rates by another 0.75 percentage points yesterday — now at a target of 3-3.25%. Interest rates haven’t been this high since 2008, and there are no signs…
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Can Fed Chair Jerome Powell prevent a repeat of high inflation of the ’70s era?
Have you mentally recovered from Tuesday’s market drop yet? Cathie Wood has — going on her largest buying spree since February. Retail investors also snapped up $2B in stocks on Tuesday. Markets rebounded slightly yesterday, and now, investors are bracing for next Wednesday — when the Fed concludes its meeting to announce the next rate…
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Here are the takeaways from July’s inflation report
July’s Consumer Price Index (CPI)— a broad measure of consumer price for goods and services — was released yesterday, and the numbers were better than expected. Annually: Prices increased 8.5% from a year ago — down from June’s 9.1% increase. Monthly: Prices were unchanged from the previous month. What’s the big deal? Yesterday’s report was…
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The Fed raises interest rates by 0.75%
Yesterday, the Fed announced it will raise its benchmark interest rate by 0.75%, the largest increase since 1994. What’s the big deal? The Fed hopes higher rates will cool off the ever-increasing prices you see everywhere. Markets were up on the news as the rate hike was mostly expected. After this week’s devastating inflation report,…
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