Monetary Policy

US imposes 'swift and severe costs' on Russia after Putin's annexation of Ukraine |  CNN Politics

US imposes ‘swift and severe costs’ on Russia after Putin’s annexation of Ukraine | CNN Politics

CNN — The United States is imposing what it describes as ‘swift and severe costs’ on Russia, including sanctions on a figure the Biden administration says is key to Russia’s economy, after the president Vladimir Putin has announced the annexation of parts of Ukraine following what the West calls “sham referendums. Putin on Friday signed …

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Rate hikes spook the market, but equity investors focus on the wrong rate

Rate hikes spook the market, but equity investors focus on the wrong rate

The stock market was spooked by rising interest rates. Let’s think carefully, from a value investing perspective, about these fears. Warren Buffett has argued that investors should think of stocks as “bonds in disguise,” in that stocks pay dividends, analogous to coupons paid by bonds, and can be valued the same way. Bonds are regularly …

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Market volatility replaces inflation as the biggest risk, raising the odds of a Federal Reserve pivot

Market volatility replaces inflation as the biggest risk, raising the odds of a Federal Reserve pivot

Market instability is the biggest risk for central banks globally, superseding inflation, due to massive leverage. So far the US Federal Reserve is lucky as there is low volatility in the SPX stock market, -2.11%, even if there is a bear market. Market stability gives the Fed space for the most aggressive rate hike campaign …

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The UK is grappling with an economic crisis of its own making |  CNN Business

The UK is grappling with an economic crisis of its own making | CNN Business

London CNN Business — A week ago, the Bank of England took a hit in the dark. He raised interest rates by a relatively modest half a percentage point to fight inflation. He couldn’t know the magnitude of the storm that was about to break. Less than 24 hours later, the government of new British …

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Freefalling markets get a good dose of cold from the Bank of England |  CNN Business

Freefalling markets get a good dose of cold from the Bank of England | CNN Business

This story is part of CNN Business’ Nightcap newsletter. To receive it in your inbox, subscribe for free, here. New York CNN Business — All the UK government drama is keeping me from catching up on the only UK drama I really want to consume, which is Love Island season 8, which I still haven’t …

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Timber prices plunge as higher rates hit housing

Timber prices plunge as higher rates hit housing

Text size Homebuilders are seeing more cancellations following the sharp rise in mortgage interest rates. Justin Sullivan/Getty Images Timber prices have fallen more than 60% since the start of the year, but don’t count on a recovery soon. Rising interest rates and inflation will continue to dampen demand for single-family homes. “Homebuilders have faced a …

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The Federal Reserve misses a crucial turning point in its fight against inflation because it believes in bad data

The Federal Reserve misses a crucial turning point in its fight against inflation because it believes in bad data

The Federal Reserve cannot see the probable economic crash that is coming because it is always looking in the rear view mirror, where it sees nothing but high inflation. The danger arises because the consumer price index and the personal consumption expenditure price index – the two most important indicators of inflation – have a …

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Falling stocks and bonds jeopardize technology, the dollar and private equity

Falling stocks and bonds jeopardize technology, the dollar and private equity

Text size Japan had to step in to support the decline of the yen for the first time since 1998, even as it tries to keep interest rates low. Akio Ko/Bloomberg The world has been addicted to cheap money for years. Now we see what the withdrawal looks like. The lifting of interest rates from …

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