VILNIUS/PRAGUE—The European Central Bank is likely to raise interest rates again in May after an already signaled hike in March, two policymakers said on Friday, with one arguing that the peak or “terminal” rate is at least starting to appear on the horizon. The ECB raised rates by a half a percentage point to 2.5…
Fed Needs Mortgage-Backed Securities Exit Plan ‘Earlier Than Later,’ Kansas City Fed President Says
WASHINGTON—Kansas City Federal Reserve President Esther George has urged her colleagues to come to terms “earlier than later” on a plan for the U.S. central bank to exit the mortgage-backed securities (MBS) market and be more explicit on how bond purchases will figure into future monetary policy. “You can’t just wake up one day and…
Fed Wants ‘Flexibility’ on Rates as Inflation Remains Key Focus, Minutes Show
WASHINGTON—All officials at the Federal Reserve’s Dec. 13–14 policy meeting agreed the U.S. central bank should slow the pace of its aggressive interest rate increases, allowing them to continue increasing the cost of credit to control inflation but in a gradual way meant to limit the risks to economic growth. The minutes of the meeting,…
Average Mortgage Rates Rise After 6 Weeks of Declines
WASHINGTON—The average long-term U.S. mortgage rate rose this week after falling for six straight weeks, adding to the challenges potential homebuyers face amid higher home prices and a limited supply of available houses. Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate increased to 6.42 percent from 6.27 percent last…
Australia Central Bank Raises Rates to 10-year High, Says More Needed
SYDNEY—Australia’s central bank on Tuesday raised interest rates to a 10-year high and stuck with its projection that more hikes are needed to cool inflation, a stance taken as slightly hawkish by markets that were looking for signs of a pause in the near term. Wrapping up its last policy meeting this year, the Reserve…
Credit Card, Personal Loan Balances Hit Record Highs Amid Soaring Inflation, Rising Rates
As consumers grapple with surging inflation and rising interest rates, more Americans are taking on extra debt to mitigate household financial pressures, a new report found. According to TransUnion’s Q3 2022 Quarterly Credit Industry Insights Report (CIIR), credit card balances advanced 19 percent year over year in the third quarter, to an all-time high of…
ECB Must Keep Raising Rates Even If Recession Risks Rise, Lagarde Says
FRANKFURT—The European Central Bank must keep raising interest rates to fight off inflation, even if the probability of a eurozone recession has increased, ECB President Christine Lagarde said in an interview published on Tuesday. “Our mandate is price stability and we have to deliver on that using all the tools we have available,” Lagarde told…
UBS Plans More Share Buybacks as Wealth Management Shines
ZURICH—UBS struck a confident tone on Tuesday, reaffirming key financial targets and pledging more share buybacks next year, buoyed by higher interest rates and strong wealth management inflows. The world’s biggest wealth manager reported a smaller-than-expected 24 percent slide in third-quarter net profit, with lower costs and rising interest income helping to mitigate the impact…
Bank of America Beats Profit Estimates as Interest Rates Climb
Bank of America Corp. on Monday reported a smaller-than-expected 9 percent drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking. The U.S. Federal Reserve’s aggressive move to tighten monetary policy this year to tame inflation has boosted the amount that banks can earn…
Senator Warren Worries That Fed Will Tip US Economy Into Recession
WASHINGTON—Sen. Elizabeth Warren (D-Mass.) said on Sunday that she was very worried that the Federal Reserve was going to tip the nation’s economy into recession and that interest rate hikes would put people out of work. “Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people…
US News
- The Associated PressHOLLYWOOD, Fla.—A former NFL player was arrested on a misdemeanor driving under the influence charge after troopers say his vehicle rear-ended a pick-up truck that was on the side of… [...]
- Daniel Y. TengAvoiding an incident like the Jan. 6 Capitol riots in Australia is one reason why voters should support a major alteration to the country’s Constitution, says Prime Minister Anthony Albanese.… [...]
- The Associated PressHOUSTON—A fire at Houston’s largest airport delayed flights on Sunday and forced passengers and employees to temporarily evacuate a terminal, officials said. No injuries were reported. Houston firefighters were called… [...]
- The Associated PressNEW YORK—A manhunt was underway Sunday for a gunman who critically wounded an off-duty New York Police Department officer who arranged on social media to meet at a Brooklyn street… [...]
- The Associated PressMITCHELL, Ind.—Two southern Indiana law enforcement officers were shot and wounded early Sunday during an exchange of gunfire with a suspect who fled a traffic stop on foot and fired… [...]
- Joshua PhilippThe CCP is threatening the United States with “resolute action” after the Biden administration shot down a Chinese spy balloon that flew across the country, and passed through the American… [...]
- The Associated PressHIGH SPRINGS, Fla.—Two abducted children who had been missing from Missouri for almost a year were found in a central Florida grocery store with their non-custodial mother, who was taken… [...]
- Terri WuFAIRFAX COUNTY, Va.—Virginia state senators Mark J. Peake (R-Lynchburg) and Chap Petersen (D-Fairfax) have written a joint letter asking President Joe Biden Biden to “address the crimes that the CCP… [...]
- The Associated PressEAST PALESTINE, Ohio—A mechanical issue with a rail car axle caused the fiery derailment of dozens of freight cars in Ohio near the Pennsylvania state line Friday night, federal investigators… [...]
- Bill PanAs national attention was captured by a Chinese surveillance balloon flying over the United States, the Biden administration has approved another $2.1 billion military aid package to strengthen Ukraine’s air… [...]