China and the European Union have engaged in productive discussions on various issues, resulting in significant outcomes and agreements, aiming to enhance their comprehensive strategic partnership.
Minneapolis Federal Reserve Bank President Neel Kashkari believes that the Fed should raise borrowing rates further and keep them high for an extended period to bring inflation back down to the target of 2% due to the unexpected strength of the US economy.
The domestic steel consumption in Thailand is expected to remain flat in 2023, with the threat of cheap steel imports potentially further impacting the country's market and manufacturing capabilities.
The UK's inflation-fueled cost-of-living crisis is predicted to increase premature deaths and widen the wealth-health gap, with the most deprived households experiencing four times the number of extra deaths compared to the wealthiest households, according to a study published in BMJ Public Health.
A potential US government shutdown could have a negative impact on the country's credit, according to Moody's, due to disrupted services, furloughed federal workers, and weakening fiscal policymaking.
A possible government shutdown in the United States could have a negative impact on the country's credit, warns Moody's, potentially leading to a downgrade of the credit rating if not addressed. The shutdown would disrupt government services and result in unpaid furloughs for federal workers.
Major Chinese banks have reduced rates for outstanding home loans in an attempt to stimulate demand in the country's troubled property sector, but analysts doubt that the cuts will be sufficient to boost demand due to low consumer confidence and income expectations.
A potential government shutdown in the U.S. could negatively impact the country's credit rating, highlighting weaknesses in institutional and governance strength, according to Moody's Investors Service. The economic impacts would be concentrated in areas with significant government presence, and the severity of the effects would depend on its duration. If prolonged, it could have a more pronounced effect on business and consumer confidence as well as financial markets.
A government shutdown in the US may cause the Federal Reserve to delay an interest rate hike and could impact the recent strength of the dollar, analysts have warned. The shutdown could also lead to a delay in key inflation data, which would affect Fed policy decisions, and may put pressure on consumer spending.
Home prices are estimated to have risen in July, despite higher mortgage rates.
The US economy is currently in decent shape, with a resilient labor market, moderated inflation, and expected strong GDP growth, but there are potential headwinds and uncertainties ahead, including UAW strikes, student debt payments resuming, and the risk of a government shutdown, which could collectively have a significant impact on the economy. Additionally, the labor market is slowing down, inflation remains a concern, and the actions of the Federal Reserve and other factors could influence the economic outlook. While there are reasons for optimism, there are also risks to consider.
The latest Federal Reserve study reveals that Americans outside the wealthiest 20% have depleted their savings during the pandemic, with cash on hand now lower than pre-pandemic levels, potentially leading to a decline in consumer spending and a potential economic downturn.
The US economy's growing debt and slow growth may lead to a "long, slow grind," while regional blocs in Asia and Europe pose a threat to the dollar's status as the global currency.
Canada and India are engaged in a heated dispute following Canadian Prime Minister Justin Trudeau's claim that India was behind the assassination of a Sikh activist in Vancouver, with the potential to escalate into a diplomatic crisis and draw other countries into the conflict.
A U.S. government shutdown would negatively impact its credit assessment and highlight the weakness of its institutional and governance strength compared to other top-rated governments, according to Moody's, although the economic impact would likely be short-lived.
A Bank of America survey reveals that 67% of American workers believe that the cost of living is rising faster than their wages, leading to increased financial stress despite the easing of inflation.
The EU's chief trade negotiator, Valdis Dombrovskis, expressed concern about European businesses in China due to tough security laws and a politicized environment, while also highlighting the EU's assertive actions against Chinese subsidies for electric vehicles; this signals a fraying in business ties between the EU and China, potentially leaving everyone worse off.
Germany's government has agreed on a 14-point plan to address the housing crisis, which includes putting stricter building insulation standards on hold and investing €18 billion in the sector by 2027. However, the plan has faced criticism from the construction industry and environmental groups.
China is facing a housing crisis with rows of empty homes, leaving the country with an estimated 65-80 million vacant units, indicating a long-term decline in housing demand and raising concerns about the nation's economic growth.
The Federal Reserve and Bank of England have decided to keep interest rates unchanged, but have left the possibility open for further increases to combat inflation.
Surging prices for soft commodities, such as orange juice, live cattle, raw sugar, and cocoa, driven by weather-related damage and rising climate risks, are contributing to higher inflation and increasing costs for consumers.
Goldman Sachs estimates that it may take six years for the Federal Reserve to reduce its mortgage bondholdings to less than $1 trillion, as the Fed's progress in shedding its $2.5 trillion mortgage-bond holdings has been slow due to climbing U.S. mortgage rates.
As federal student loan payments are set to resume, surveys indicate that the majority of borrowers plan to cut back on spending and will have difficulty saving for retirement, potentially leading to a drop in consumer spending and impacting economic growth. Some borrowers are already struggling with increased stress and debt from additional financial obligations taken on during the payment pause, while higher-earning households also anticipate difficulties in making payments. While there are options available, such as income-based repayment plans or a one-year grace period, the overall financial strain is expected to have significant repercussions.
Despite expectations of higher interest rates causing a spike in unemployment and a recession, the Federal Reserve's rate hikes have managed to slow inflation without dire consequences, thanks to factors such as replenished supplies, changes in the job market, and continued consumer and business spending.
The publication of major U.S. economic data, including employment and inflation reports, will be suspended indefinitely if the federal government shuts down due to lack of funding, leaving policymakers, investors, and businesses in the dark for key decision-making.
Goldman Sachs is not concerned about the recent surge in oil prices for three main reasons: the increase in oil prices is relatively small compared to previous periods, falling electricity prices offset higher oil prices, and the Federal Reserve is unlikely to raise interest rates in response to the increase in oil prices.
Japanese Prime Minister Fumio Kishida has announced his new economic package, which focuses on wage increases and measures to mitigate the impact of rising prices, as support for his Cabinet continues to dwindle despite a recent reshuffle; however, opposition lawmakers have criticized Kishida for using the package to appeal to voters ahead of a potential snap election.
Chinese President Xi Jinping visited Yiwu in Zhejiang Province, hailing it as a major industry and urging it to contribute to expanding markets at home and abroad, while promoting common prosperity; he also emphasized the importance of private enterprises in foreign trade and highlighted the success of the China-Europe freight trains. He further called for advancing rural revitalization and narrowing the gap between urban and rural areas, while emphasizing the development of the real economy and the manufacturing sector.
The Bank of England has been criticized for failing to predict high inflation, prompting a review of its forecasting models, with comparisons showing that alternative models have outperformed the bank's predictions in recent years, potentially exacerbating the inflation situation. The author suggests that the bank should be more transparent and open about its models and consider holding a prediction tournament to improve forecasting accuracy.
The Bank of England has been criticized for not accurately predicting inflation, leading to a review of its forecasting models by former Federal Reserve chairman Ben Bernanke and highlighting the need for diverse and combined forecasts in order to accurately predict inflation.
Yas and Saadiyat Islands in the UAE have become attractive investment opportunities and luxury destinations, with the Abu Dhabi Department of Culture and Tourism playing a key role in their development, according to the CEO of a real estate development firm. These islands continue to attract investments and tourists, contributing to the UAE's economic diversification plans.
The German government is allocating 18 billion euros for affordable housing and has put proposed building regulations on hold to support the struggling construction industry, which has been hit by high interest rates and falling housing prices.
The US economy experienced a slowdown in August due to a decrease in industrial activity, according to data from the Federal Reserve Bank of Chicago.
Rep. Alexandria Ocasio-Cortez contradicted President Biden's narrative on the economy, calling it a "crisis" and criticizing Washington insiders and Wall Street analysts for being out of touch with the struggles of working-class Americans.
The President of the European Central Bank, Christine Lagarde, indicates that borrowing costs may have peaked but will remain high to curb inflation and make a substantial contribution to its timely return to the target.
China's economy is still expected to grow 5% this year, despite outsized expectations and challenges such as a bloated property sector and demographic issues.
Nigeria and South Africa are expected to face economic challenges in 2023, with Nigeria experiencing slowing growth due to President Tinubu's reforms and South Africa grappling with issues in its oil sector.
Ghana's central bank has kept its main interest rate at 30.00% due to lower inflation, a stable exchange rate, and strong economic growth, surpassing IMF projections.
The US economy's resilience may be temporary as the trillions in stimulus spending and resulting debts could lead to a long and slow grind, similar to what other nations have experienced, warns Ruchir Sharma.
Gas prices in California slow down to an average of $5.83 per gallon, while there is a potential end to the months-long a writers' union strike, a possible strike by workers at GM and Stellantis plants, and the closure of major bank branches next year. Additionally, the Federal Reserve keeps interest rates steady, SNAP benefits will increase in October, and the 2024 Social Security COLA is expected to be lower than the previous year. Furthermore, there are concerns about the impact of a government shutdown on student loan repayments and the potential furlough of federal employees. Finally, Amazon Prime Video announces the introduction of ads for non-upgraded members, and housing market experts suggest that the first week of October may be the best time to buy a home due to increased options and fewer competitors.
The head of the European Central Bank, Christine Lagarde, stated that interest rates will remain high to combat inflation, despite acknowledging the impact it has on homeowners with variable interest rate mortgages, as upward pressure on prices persists in the eurozone.
There are four risks that could potentially push the US economy into a recession sooner rather than later, including a weakening labor market, headwinds for the consumer, high borrowing rates, and the rising chances of a government shutdown, according to Raymond James.
The Federal Reserve has upgraded its economic outlook, indicating stronger growth and lower unemployment, but also plans to raise interest rates and keep borrowing costs elevated, causing disappointment in the markets and potential challenges for borrowers.
BRICS countries are reducing their ties with the U.S. Treasury by selling off Treasury bonds, opting instead for gold, local currencies, and commodities like oil and gas, in order to hedge against U.S. economic policies that may limit the dollar's ability to fund its deficit. Data shows that BRICS has already offloaded $18.9 billion in U.S. Treasury bonds this month, with China leading the way by selling $117.4 billion worth of U.S. government debt this year. Other BRICS members, including Brazil, India, and the UAE, have also decreased their U.S. Treasury holdings. In total, BRICS has removed $122.7 billion worth of U.S. Treasury bonds in 2023.
The video is playing in picture-in-picture, and there are various Fox channels and radio shows airing at different times.
Fed Chairman Powell's response that a soft landing is not his base case and that factors outside their control may decide the outcome shocks the stock market, leading to three days of market declines, despite the recent surge in the US economy.
The Middle East's tourism sector remains resilient despite challenges such as rising construction costs, funding delays, and higher interest rates for development projects, with Saudi Arabia and the UAE showing determination to achieve their tourism targets through collaboration between the public and private sectors and international consultants being appointed for various projects across multiple markets.
The U.S. travel economy stands to lose nearly $1 billion per week during a government shutdown, as six in 10 Americans would cancel trips or avoid flying, according to analysis by the U.S. Travel Association. The previous government shutdown in 2018-2019 cost the economy $11 billion, with national parks, monuments, and tourism-dependent towns taking a significant hit. Closure of government-run museums and monuments in Washington, D.C., during a shutdown also leads to substantial economic losses. The hassle of traveling is exacerbated, further discouraging tourism and spending.
The Russian government seems to have found a way to bypass the $60 oil price cap implemented by Western governments to prevent President Putin from profiting off the conflict in Ukraine, raising questions about the effectiveness of the cap and the ability to enforce it in the future.
Daily Kos is taking action to support the Black community and encourages involvement in the upcoming elections.