Central Bank Intervention

The decision to raise the policy rate to 4.75% from 4.50% was fueled by stronger-than-expected consumer spending and concerns over elevated inflation. The decision to raise the policy rate to 4.75% from 4.50% was fueled by stronger-than-expected consumer spending and concerns over elevated inflation. FOLLOW US ON GOOGLE NEWS Read original article here Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified.…

LUSAKA, Zambia—Treasury Secretary Janet Yellen said the Federal Reserve likely wouldn’t accept a $1 trillion platinum coin if the Biden administration tried to mint one to avoid breaching the debt limit, dismissing an idea that has been floated to circumvent Congress on the issue. Some Biden administration officials and Democrats on Capitol Hill have discussed the possibility that the Treasury could use an obscure law authorizing platinum coins in the event…

OTTAWA—Bank of Canada Gov. Tiff Macklem says the central bank is moving toward a meeting-by-meeting approach on further interest rate increases, based on how the economy responds to its rapid-fire tightening of financial conditions. “We do expect that interest rates will need to go higher, to get inflation all the way back to the inflation target” of 2%, Mr. Macklem said during the “Policy Speaking” podcast of the Ottawa-based Public Policy Forum. “Exactly how much higher it has to go and for how long…

Recent turmoil in British bond and currency markets is one. That disturbance has exposed potential risks lurking in pensions and government bond markets, which were relative oases of calm in past financial flare-ups. The Federal Reserve and other central banks are raising interest rates to beat back inflation by slowing economic growth. The risk, in addition to losses in wealth and household savings, is that increases can cause disruptions in lending, which swelled when rates were low. Major U.S. stock…

Fed Vice Chairwoman Lael Brainard said it will take time for policy tightening to take full effect. Photo: Al Drago/Bloomberg News…

The Bank of Mexico raised its reference interest rate for an 11th straight time Thursday, citing greater-than-expected price shocks that will keep inflation above target for longer than it had previously estimated. The five-member board of governors voted unanimously to raise the overnight interest-rate target from 8.5% to 9.25%. It was the bank’s 11th consecutive rate increase since June of 2021 and the third straight three-quarter point move, matching the U.S. Federal Reserve’s last three increases.…

LONDON—Prime Minister Liz Truss looked to reassure the British public and rattled investors that her plan to cut taxes wouldn’t lead to prolonged financial instability, arguing in a series of interviews on Thursday that the country had been buffeted by global shocks rather than her government’s reforms and that her policies would result in faster growth.“We had to take decisive action,” Ms. Truss told the British Broadcasting Corp. in her first public comments since the tax plan was…

TOKYO—Japan intervened in the foreign-exchange market by buying yen for the first time in 24 years, shortly after the Bank of Japan accelerated a fall in the currency by confirming it would maintain ultralow interest rates. The rare intervention was the latest example of global concern triggered by the strong dollar, which has gained ground on the back of the Federal Reserve’s interest-rate increases. One nation hit by the fallout is Japan, the world’s third-largest economy, which has to pay…

LONDON—Central banks and governments around the world moved to increase interest rates or support their currencies after the Federal Reserve raised rates and signaled that they would remain high for some time, giving fresh impetus to an already strong dollar. The Bank of England was the latest to adjust rates higher, raising its key interest rate for the seventh consecutive time Thursday. Only the Bank of Japan—generally considered a perennial dove—and the often contrarian Turkish central bank bucked the trend, though…

The U.S. dollar is experiencing a once-in-a-generation rally. For the rest of the world, that is a big problem.The dollar’s role as the primary currency used in global trade and finance means its fluctuations have widespread impacts. The currency’s strength is being felt in the fuel and food shortages in Sri Lanka, in Europe’s record inflation and in Japan’s exploding trade deficit. The surge threatens to exacerbate a slowdown in global growth and amplify inflation headaches for global central banks. In a…