Erdogan says Turkey will keep cutting interest rates, mocks British pound

Turkish President Tayyip Erdogan addresses members of his ruling AK Party (AKP) during a meeting at the parliament in Ankara, Turkey May 18, 2022. Murat Cetinmuhurdar/Presidential Press Office/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. DO NOT RESCUE. DO NOT FILE. MANDATORY CREDIT Murat Cetinmuhurdar | Reuters Turkey will keep cutting … Read more

How the United States is exporting inflation to other countries

London CNN Business — The Federal Reserve is laser-focused on stemming price increases in the United States. But countries thousands of thousands away are reeling from its hardball campaign to strangle inflation, as their central banks are forced to hike interest rates faster and higher and a runaway dollar pushes down the value of their … Read more

Talking Heads 2022: Rates market ruckus

In August, when risk.net spoke to Michael Lublinsky – global head of the macro business at Barclays – he said this year’s unhinged markets had forced the bank to focus on how it would cope with episodes of severe, specific stress. Like a 100 basis point move in rates, for instance. “It becomes even more … Read more

Opinion: The Federal Reserve is missing a crucial turning point in its fight against inflation because it believes in flawed data

The Federal Reserve can’t see the probable economic crash that is coming because it’s still looking into the rearview mirror, where it sees nothing but high inflation. The danger arises because the consumer price index and the personal consumption expenditure price index — the two most important inflation gauges — have a fatal flaw in … Read more

Markets are now treating UK bonds like Greek and Italian debt

London CNN Business — The pound may have paused its headlong crash toward parity with the US dollar, but the damage to the UK economy sparked by Prime Minister Liz Truss’ huge tax-cutting gamble is still rippling through financial markets. Sterling stabilized early Tuesday to trade near $1.08, bouncing off Monday’s record low of around … Read more

UK lenders halt mortgage deals to customers after market chaos

The British bond and currency markets have been in turmoil since Finance Minister Kwasi Kwarteng announced his “mini-budget” on Friday. Oli Scarf | Getty ImagesNews | Getty Images LONDON – UK lenders Virgin Money, Halifax and Skipton Building Society pulled some of their mortgage deals to customers after the tumult in British bond markets. Virgin … Read more

Fed Chair Powell warned of ‘pain’ to come. Seniors on fixed incomes are already feeling it

CNN — America’s seniors are facing a lot of hard choices. despues de the Federal Reserve’s latest rate hike, the combination of climbing prices on everything from food to gas to utilities and ever-higher borrowing costs is making the finances of Americans on fixed incomes increasingly precarious. “Overall, they have an increase in daily living … Read more

Pound struggles to recover as Bank of England moves to calm markets

After a day of hellish headlines and forecasts around Britain’s pound, the Bank of England finally weighed in, saying it is “monitoring developments in financial markets very closely in light of the significant repricing of financial assets”. The statement, long-awaited alongside market speculation of intervention from the BoEcame hours after the pound plummeted to a … Read more

The ‘real cure’ for inflation has gone ignored, Steve Forbes says

The British pound plunged to a record low on Monday morning in Asia, following last week’s announcement by the new UK government that it would implement tax cuts and investment incentives to boost growth. In focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of maintaining stable currencies, … Read more

Market route has muni bonds looking good. How to add them to your portfolio

The recent market turbulence has investors searching for income. For some, municipal bonds may be the answer. The muni market has taken a beating this year, with net weekly inflows into muni mutual and exchange-traded funds negative for most of 2022, according to Refinitiv Lipper data. Yet their yields and tax benefits can make them … Read more