Analysts at JP Morgan have predicted an 85 percent chance that the United States will enter a period of recession based on the decline in the S&P 500. During the past 11 recessions, the S&P 500 declined by an average of 26 percent. In the current year, the index has fallen 20 percent from its…

The Federal Reserve raised its key interest rate by three quarters of a percent, the largest rate hike in 28 years. Gas prices are averaging over $5 a gallon. The White House is now calling on oil companies to increase capacity for less profit. The oil industry is striking back, pointing to what they call…

The European Central Bank (ECB) tried to calm fears of a debt crisis following an emergency policy meeting on June 15 by promising “flexibility” while managing its huge balance sheet, as well as creating a new tool to tackle the risk of eurozone bond fragmentation. During a meeting the previous week, the ECB stated that…

Cleveland Federal Reserve Bank President Loretta Mester recently said that she can’t rule out the possibility of a 75-basis-point interest rate hike by the Federal Reserve, depending on where inflation is heading. “We don’t rule out 75 forever, right? The cadence we’re going now seems about right to me,” Mester said during a May 10…

The European Central Bank (ECB) has pledged to end its bond-buying activities in a few months as the region battles high inflation rates. After looking at data since its previous meeting, the Governing Council, the main decision-making body of the ECB, judged in an April 14 meeting that net asset purchases under its asset purchase…

The Reserve Bank of New Zealand (RBNZ) has raised its official cash rate (OCR) by 50 basis points to 1.5 percent, its biggest such increase in 22 years amidst concerns about surging inflation. RBNZ’s Monetary Policy Committee decided on April 13 that it was best to tighten monetary conditions at a speed that will support…

On March 16, money became more expensive. Any time you buy something on credit, you are essentially “buying” money. You agree to pay that money back over time, but often pay interest on that borrowed money. The interest rate for that borrowing is determined using the federal reserve benchmark rate as a starting point. From…

Cleveland Federal Reserve Bank President Loretta Mester on Tuesday said she would like to raise interest rates to about 2.5 percent by year end, with bigger rate hikes in the first half, and further tightening next year to bring down high inflation and keep it from getting entrenched. “I find it appealing to front-load some…

Commentary At their March meeting, the Federal Reserve decided to raise interest rates a meager 0.25 percent. That hike will do little to head off the upcoming double-digit price increases that will begin before summer starts. The Fed’s shockingly irresponsible behavior will do little to reduce inflation. And because of their weak position, when they…

The governor of the Reserve Bank of Australia (RBA), Phillip Lowe, doesn’t believe a global coordinated financial response to the Ukraine conflict is required. Lowe said that while central banks worked closely together during the Global Financial Crisis, the current situation was entirely different. “[They worked together in the GFC] because financial markets had frozen…