Consumer spending is softening, home starts and sales are down, industrial output is weakening with factory production in decline, and the U.S. Federal Reserve has just boosted its key interest rate the most in one jump since 1994. The Federal Bank of Atlanta’s closely-watched GDPNow gauge of economic strength indicates the U.S. economy will flatline...
Tag: june 21 2022
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FED LIFTS INTEREST RATE BY 75 BASIS POINTS
On 15 June, the U.S. Federal Reserve raised its benchmark interest rate by three-quarters of a point, the largest such increase since 1994. The Fed also indicated that it will continue to raise rates at every meeting this year in its attempt to quell inflation, which set a 40-year record pace of 8.6 percent in...
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INVESTORS DUMP CORPORATE BONDS
During the week ending 15 June, investors took $6.6 billion out of funds that buy high-yield “junk” bonds, raising the total withdrawal this year to $35 billion, data service EPFR reported. The spread between treasury yields and those of junk bonds moved up two-thirds of a point last week to 5.17 points, the widest gap...
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DHS: ARRESTS OF MIGRANTS ILLEGALLY CROSSING THE U.S. BORDER HIT RECORD IN MAY
The Department of Homeland Security announced last week that its agents made a record amount of arrests at the southern border, which represented a 10 percent jump from April. The department said agents arrested 22,656 individuals and about 25 percent were repeat offenders. The Wall Street Journal said these agents have been dealing with record numbers of...
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EUROPEAN COMMISSION GIVES NOD FOR UKRAINE TO JOIN EU
The European Commission said last week that it endorsed Ukraine’s official candidacy to join the EU, but what that exactly means is unclear. Ursula von der Leyen, the commission president, said Friday that Ukraine should be welcomed by European countries. The nod was largely embraced but the process could take decades. French President Emmanuel Macron...
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U.S. IN CLOSE CONTACT WITH ISRAEL BEFORE ATTACKS ON SYRIA
The U.S. and Israel maintain a closer relationship than previously known when it comes to Israeli attacks on Syria positions, according to a new report. Washington is informed by Jerusalem prior to these airstrikes and at times coordinates with Israel. Israel claims the main goal of these strikes is to counter Iran’s reach in Syria....
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NATO’S JENS “NUTS” STOLTENBERG WANTS TO KEEP UKRAINE WAR GOING
Jens Stoltenberg, the head of NATO, said in an interview on Sunday that it is likely that the Ukraine War could drag on for years and that Western countries should prepare for the long haul. Stoltenberg made the comment during an interview with the German newspaper Bild. He said we must “not let up” in...
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IS RUSSIA FIGHTING THE U.S. IN SYRIA?
Russia carried out airstrikes against the U.S.-led coalition earlier this month near the al-Tanf garrison, which is located near Syria’s border with Jordan, according to a report. The Wall Street Journal, citing U.S. military officials, reported that there is concern that these military actions by Russia could “escalate into an unintended conflict” between the U.S....
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EUROPEANS DIVIDED ON HOW THEY WANT UKRAINE WAR TO END
A recent survey by the European Council on Foreign Relations found a nearly even split on how people want to see the Ukraine War ultimately resolved. The poll included residents from 10 countries and showed that 35 percent of Europeans find themselves in the “peace camp,” which means they want a swift resolution to the...
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TREND TRACKING LESSON: HOW THE TRENDS JOURNAL WAS RIGHT ON INFLATION WHILE FED, BUSINESS JOURNALISTS GOT IT WRONG
The prevailing wisdom is that the Federal Reserve and large business news organizations who cover the central bank have some kind of valuable insight about future moves when it comes to fighting inflation. Greg Ip, a columnist for The Wall Street Journal, wrote a piece last week about how only a precious few economists devoted...