Next big shoe to drop in financial markets: Inflation that fails to respond to Fed rate hikes

Traders, investors and strategists are adding one more factor to the list of reasons why financial markets may be more than volatile through the next three to four months: . Wednesday’s price action reflected the continued anxiety gripping stock market, with all three major indexes sporting sharp losses. The Dow Jones Industrial Average DJIA, -3.48% … Read more

This Selloff Has Been a Long Time Coming. That Should Make It Less Scary.

Monday’s market slump had an eerie feel to it, almost as if investors had been expecting it. After the obvious low trigger, things appear to be stabilizing again Tuesday morning. At least for now, it’s a drop, but not a panic. Treasury Secretary Janet Yellen sees them as similar. “The US financial system has continued … Read more

How the Inflation Rate Is Measured: 477 Government Workers at Grocery Stores

READING, Pa. — Emily Mascitis has one of the most important jobs you’ve ever known. Four years in the fastest rate at As Americans’ monthly bills Mascitis’s work confirms that $ 9 you just paid for a 4-pound bag of clementines is not an anomaly. Newsletter Sign-up The 10-Point. A personal, guided tour of the … Read more

Ships Carrying Russian Oil for EU Considers Insurance Ban

EU officials have proposed a ban on insured ships that carry Russian oil, a move aimed at blocking Russia’s access to global oil markets and the revenues that have fueled its military invasion of Ukraine. “In effect, it would be a very strong hindrance to export Russian crude,” said Lars Barstad, chief executive of Frontline … Read more

Fed, Lower-Income Areas for Biden Administration Float New Lending Rules

WASHINGTON — Top US banking regulators are poised to overhaul how banks leverage billions of dollars annually in low-income communities, after scrapping a Trump-era revamp that had divided regulators and industry officials. The latest proposal for the Modernize Rules of the 1977 Community Reinvestment Act is set to be aimed at ensuring that lower-income individuals … Read more

Fed Raises Interest Rate By Half Point, Ratcheting Up Its Inflation Fight

The Federal Reserve has approved a rare half-percentage-point interest rate increase and plans to shrink its $ 9 trillion asset portfolio to a double-barreled effort in the next month. The moves, after a two-day policy meeting Wednesday, will raise the central bank’s benchmark federal-funds rate to a target range of between 0.75% and 1%. Together, … Read more

The Postpandemic Normal Is Here And It Is Not That Special

There are higher inflation and interest rates than the stock market’s downdraft. This is also a sign that the economy has arrived at a new postpandemic normal — and it is not as lucrative as investors have hoped. The Pandemic Catalyzed a once-in-a-generation change in consumer, worker and company behavior: From a shift to remote … Read more

How Far The Fed Will Go On Rate Hikes? Here Are Some Under-the-Radar Gauges.

Federal Reserve Chairman Jerome Powell and his central bank colleagues are likely to raise interest rates by a half-point and start demanding the size of their balance sheet when they announce their policy decision Wednesday. Samuel Corum / Getty Images Text size A half-point interest-rate hike and a start-up so-called quantitative tightening are all but … Read more

Bond Runoff with Fed Prepares Double-Barreled Tightening

This Wednesday, officials will announce how they will shrink those holdings. Expect the process to be faster and more disruptive to financial markets than last time. The Fed first undertook large-scale bond buying, dubbed “quantitative easing,” during and after the 2007-09 financial crisis. At a time when the Fed’s short-term interest rate was near zero, … Read more

Strong Dollar Aids US Inflation Fight, Adds to Price Pressures Abroad

Text size Chinese 100 yuan bank notes. Paul Yeung / Bloomberg While a certain social-media site, the global currency markets are arguably the wilder and perhaps more important, Asian currencies, notably China’s yuan and Japan’s yen, took their sharpest dives in years, while the other side of the globe, the euro slide to a five-year … Read more