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A U.S. housing slump is here that could lead to a 20% drop in house prices and Fed interest rate cuts by 2023, chief economist says

A U.S. housing slump is here that could lead to a 20% drop in house prices and Fed interest rate cuts by 2023, chief economist says

A recession in the US market has already arrived as mortgage rates soar, according to ING chief economist James Knightley. Demand for mortgages has fallen 30% since the start of the year and sales transactions are starting to slow. “A slowdown in the housing market will weaken US growth, but it’s also important to remember …

A U.S. housing slump is here that could lead to a 20% drop in house prices and Fed interest rate cuts by 2023, chief economist says Read More »

Pound crashes as new UK PM bets on tax cuts for the rich

Pound crashes as new UK PM bets on tax cuts for the rich

LONDON — If anyone thought Britain needed a period of calm after Boris Johnson’s tumultuous prime minister, no one told his successor. The country was already facing an ugly menu of challenges. But the solution proposed by new Prime Minister Liz Truss quickly threw the economy into chaos, threatening both immediate and lasting consequences for …

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Larry Summers calls UK tax cuts 'totally irresponsible' and warns of possible contagion

Larry Summers calls UK tax cuts ‘totally irresponsible’ and warns of possible contagion

Larry Summers Cameron Costa | CNBC LONDON — Former US Treasury Secretary Larry Summers warned on Tuesday that the United Kingdom had lost its sovereign credibility after the new government’s fiscal policy sent markets tumbling. The pound hit an all-time low against the dollar in the early hours of Monday morning, before recovering slightly on …

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Fed official warns UK tax cuts increase risk of global recession

Fed official warns UK tax cuts increase risk of global recession

The British government’s budget plan has heightened economic uncertainty and raised the chances of a global recession, a senior US Federal Reserve official warned after the pound rose to a record high. Speaking as the pound soared as traders digested British Chancellor Kwasi Kwarteng’s £45billion tax cut package, Atlanta Fed Chairman Raphael Bostic said the …

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Britain scares away investors with historic tax cuts and borrowing

Britain scares away investors with historic tax cuts and borrowing

Kwarteng slashes top income tax rate amid growth momentum Huge increase in UK government debt issuance expected Gilts suffer biggest drop in decades Pound drops 3% to new 37-year low against dollar LONDON, Sept 23 (Reuters) – Britain’s new finance minister Kwasi Kwarteng on Friday announced historic tax cuts and huge increases in borrowing in …

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