The Federal Reserve believes that its policies have potentially played a role in preventing a recession and achieving a “soft landing” for the US economy, which was previously seen as unlikely by analysts. Following the announcement of the latest interest rate hike, Fed Chair Jerome Powell stated that the central bank no longer predicts a …
In a positive turn of events, the second quarter of the year has seen an acceleration in economic growth in the United States. This shows promising signs that the country may avoid a recession, despite interest rates reaching a two-decade high. According to the Commerce Department’s report on Thursday, the nation’s economic output expanded at …
After three years of a global pandemic that caused massive fluctuations in unemployment rates and led to soaring inflation, the Federal Reserve and the Congressional Budget Office have given a positive outlook for the post-COVID U.S. economy. Fed Chairman Jerome Powell stated that the economy has shown resilience and is no longer expected to enter …
Troubling developments are unfolding in the credit markets, signaling potential economic distress. The federal funds rate, hovering above 5%, echoes levels last seen in 2007 before the economy plunged into a major recession and financial crisis. Cracks within the markets are becoming audible, with commercial property loan delinquencies reaching five-year highs. A distressing number of …
For quite some time, prominent economists have cautioned that the most effective way to control inflation would be to increase unemployment, essentially triggering a recession. Last summer, former Treasury Secretary Lawrence Summers even predicted that we would need five years of unemployment above 5 percent. Paradoxically, every strong jobs report seemed like a negative sign, …
The stress tests conducted by the Federal Reserve this year have shown that the nation’s 23 largest banks have passed, indicating resilience in the banking system despite recent failures in Silicon Valley Bank, Signature Bank, and First Republic Bank. However, there were some concerns raised about midsize and super regional banks, as some passed with …
Retail sales growth in Canada continues to surpass global markets this year, highlighting the resilience of Canadian shoppers despite inflation and recession concerns, according to a new report. The Colliers 2023 Retail Outlook reveals that consumers in Canada are still spending, although retail sales have slightly cooled compared to last year’s spike in prices and …
Retail sales in the US have fallen by 1% in March compared to the previous month, according to the Commerce Department. While the decline was steeper than expected, the figure is 2.9% higher year-on-year. Smaller tax returns and concerns about the labour market have been cited as reasons for the drop, which was particularly noticeable …
The Chancellor has set a tight fiscal rule to decrease debt-to-GDP within five years, leaving only a £6.5bn buffer, the smallest since at least 2010. However, the OECD forecasted an upgrade in the UK’s growth in 2023 while warning that the narrow margin could hinder the weak recovery. The OECD stated, “Significant risks surround the …