Fed Officials Planning 0.75-Point Rate Hike

Fed Officials Planning 0.75-Point Rate Hike

As part of an aggressive effort to combat high inflation, the Fed may raise interest rates by 0.75 percentage point later this month. The July 26-27 meeting left the door open for a full-point increase. In recent interviews and public comments before their premeeting quiet period, some of them dismissed… Continue reading

Inflation Is Now Out of Control

Inflation Is Now Out of Control

Eroding wealth is affecting many people in a variety of ways, including rising inflation on goods and services, plummeting equity markets, and falling housing prices, to name a few. Governments and central banks, however, deny responsibility for the economic climate they have created, blaming Putin for higher food and energy… Continue reading

Central Banks Are Being Caught off Guard by an Economic Tsunami

Central Banks Are Being Caught off Guard by an Economic Tsunami

The roaring economic recoveries that followed the pandemic’s first year slowed due to supply-chain issues. The world machine is far too large and complex to restart operations in a matter of months. Slowing growth was also an unexpected occurrence. To top it all off, Russia decided to invade Ukraine, while… Continue reading

Canada: Broad-Based Price Pressures Make a 75bp Increase Almost Inevitable

Canada: Broad-Based Price Pressures Make a 75bp Increase Almost Inevitable

In Canada, inflation reached levels not seen since 1983 in May. We believe that the CPI data make a 75 basis point interest rate hike at the next meeting a near inevitability, with rates peaking at more than 2.75 percent. There was no relief in May for those of us… Continue reading

As Inflation Surges, the Bank of England Raises Interest Rates for the Fifth Time in a Row

As Inflation Surges, the Bank of England Raises Interest Rates for the Fifth Time in a Row

The Bank of England raised interest rates for the fifth time in a row on Thursday in an effort to contain rising inflation. The Monetary Policy Committee voted 6-3 to raise the Bank Rate by 25 basis points to 1.25 percent, with three members calling for a 50 basis point… Continue reading

The Swiss Central Bank Has Surprised Investors by Raising Interest Rates for the First Time Since 2007

The Swiss Central Bank Has Surprised Investors by Raising Interest Rates for the First Time Since 2007

On Thursday, the Swiss National Bank hiked its policy interest rate for the first time in 15 years, following other central banks in tightening monetary policy to combat rising inflation and sending the safe-haven franc substantially higher. The central bank raised its policy rate from -0.75 percent to -0.25 percent,… Continue reading

The Federal Reserve Hikes Interest Rates by 0.75 Percent, the Highest Since 1994, in an Effort to Control Inflation

The Federal Reserve Hikes Interest Rates by 0.75 Percent, the Highest Since 1994, in an Effort to Control Inflation

The Federal Reserve hiked interest rates by 0.75 percent on Wednesday, the most in a single meeting since 1994. The Fed signaled that further interest rate rises will occur this year, as the Fed relies on increased borrowing costs to reduce the excessive demand that is contributing to higher-than-expected inflation…. Continue reading

Here’s What the Fed Is Expected to Announce, Including the Biggest Rate Raise in 28 Years

Here’s what the Fed is expected to announce, including the biggest rate raise in 28 years

The Federal Reserve is likely to raise interest rates by three-quarters of a percentage point on Wednesday, something it hasn’t done in 28 years. In reaction to rising inflation and unpredictable financial markets, the central bank will hike the rate that banks charge each other for overnight borrowing to a range… Continue reading