This year, low-income countries will be hit with their largest bills for foreign debt servicing in 25 years due to higher interest rates. As a result, their spending on crucial areas such as health and education is in danger of being compromised. According to a study that will be published in the coming days by…
In late March, deposits at commercial banks in the United States increased for the first time in roughly a month, indicating a degree of stabilization after the banking system was rocked and depositors were rattled by the two biggest bank failures since the financial crisis. This is according to a Reuters report. On Friday, the…
The U.S economy is expected to sink into a recession in the next 12 months as the Federal Reserve ramps up efforts to bring down raging inflation and cost of living. This is according to the Wall Street Journal’s latest survey of economists. The report puts the probability of the U.S economy tipping into a recession…
The Federal Reserve increased interest rates by another 75 basis points on Wednesday to help cool the country’s stubbornly high inflation. This move sparked experts’ concern that the economy may have already entered a recession. In a press conference following the rate hike, Fed Chairman Jerome Powell stated that he doesn’t think the economy is…
Are we in a recession? Talks of a possible recession among bankers, economists, and analysts have increased due to an uncertain economic backdrop caused by raising inflation, sky-high interest rates, and chaotic stock markets. While the U.S economy has remained resilient with robust consumer spending, and a strong job market on average, worries of increasing borrowing…
It’s been a wild ride lately on the stock market, with indexes going up and down seemingly at will. The U.S. stock market closed out May essentially unchanged from where it started, a feat made possible only due to a strong month-end surge. As we roll out of June, the main U.S. stock indexes have…
During periods of surging inflation, prices of all commodities go up and cause money to lose value. The currency depreciates because consumers now need more money to buy the same bundles of goods as before. Mild, stable, and consistent inflation is beneficial to the economy as it maintains price stability and maximum employment. An annual…
In a bid to tame the runaway inflation that has seen Americans slammed with double-point percentage increases in prices of essential commodities, the Federal Reserve has taken more aggressive and drastic measures by announcing an interest hike of 75 basis points (bps). The hike is the third this year and comes after a period of…
The Federal Reserve announced a 0.75% increase in the target range for the federal funds rate on the 15th of June 2022. This means that consumers can expect an increase in interest rates across all types of loans including personal loans over the coming year. Market analysts largely anticipated the hike, but it still comes…
The U.S senate confirmed that Jerome Powell would be chairing the Federal Reserve Board for another four years in his second term. He secured this position on May 12, 2022, after the members of the Senate cast an 80-19 affirmative vote. Despite the expiry of his first term in February 2022, Powell has not left…