Inflation eased further in October, offering a dose of encouragement as the Federal Reserve looks for enough progress to let up on its fight to tame consumer prices and slow the economy.—washingtonpost.com
Tag: Monetary transmission
Strongest US Growth Since 2021
Gross domestic product is projected to have grown at an annual rate of 4.5% last quarter. The Fed has been trying to quell inflation by dampening demand while avoiding a recession. The Fed chief said that policymakers are likely to hold rates steady at their next meeting.—bloomberg.com
IMF Urges Central Banks to Remain Firm on Inflation
World inflation is expected to remain high despite a series of rate rises by multiple central banks. The IMF expects weaker global economic growth in 2024 and projects world inflation next year at 5.8 percent. Returning world inflation to a 2 percent target is expected to take until 2025.—ft.com
Turkey Shocks With Big Rate Hike to 25% to Cool Raging Inflation
Turkey’s central bank hiked its key interest rate by a surprisingly large 7.5 percentage points to 25%, signaling a new determination to address inflation, which soared to 48% last month. President Erdogan’s past drive to slash interest rates sent inflation above 85% last year.—cnn.com
The Fed’s Favorite Inflation Measure Cooled Down Even Further in June
The Personal Consumption Expenditures price index rose 3% for the 12 months ended in June, down from 3.8% in May. The Fed uses the core PCE index as the benchmark for its 2% inflation rate target. The core PCE index showed prices increased 4.1% in June from the year before.—cnn.com
Inflation Eased to 3% in June
Inflation cooled in June, boosting chances that the Fed will stop raising interest rates. Fed officials are focused on core inflation because they see it as a better predictor of future inflation than the headline inflation rate. The U.S. economy continues to defy predictions of an economic downturn.—wsj.com
Turkey Hikes Interest Rates to 15%
Turkey’s central bank almost doubled interest rates to 15%. Annual consumer inflation has come down from 85.5% in October but was still 39.6% in May. The lira weakened further after Thursday’s rate hike news, dropping more than 2% to a new record low of 24 to the US dollar.—cnn.com