The latest report from the Bureau of Labor Statistics shows that the personal consumption expenditures (PCE) index rose by 0.3% from the previous month and 5% on an annual basis. The PCE price index, which is the Federal Reserve’s preferred measure of inflation, came in below expectations that called for a 0.4% rise. It was […]
Continue reading The US Bureau of Economic Analysis (BEA) has released its third and final estimate of GDP growth for the fourth quarter of 2022, reporting a 2.6% increase, a slight dip from the previous estimate of 2.7%. The third quarter saw a growth rate of 3.2%.[0] Despite rising interest rates, the economy maintained its resilience, however, […]
Continue reading The United States and Japan have announced a trade agreement on electric vehicle (EV) battery minerals, granting Japanese automakers greater access to the US EV tax credit of $7,500.[0] This agreement is seen as pivotal for uplifting battery supply chains and will allow Japanese auto manufacturers to source EV battery materials without having to pay […]
Continue reading China has spent $240bn bailing out 22 developing countries between 2008 and 2021, with the amount soaring in recent years as more have struggled to repay loans spent building “Belt & Road” infrastructure, according to a study by researchers from the World Bank, Harvard Kennedy School, Kiel Institute for the World Economy and the US-based […]
Continue reading President Joe Biden on Friday urged Congress to enact tougher punishments for banking executives whose mismanagement contributes to the failure of their institutions, alluding to the collapse of Silicon Valley Bank and Signature Bank in recent days. “No one is above the law – and strengthening accountability is an important deterrent to prevent mismanagement in […]
Continue reading The past week has seen a turbulent time for the banking industry, with the collapse of Silicon Valley Bank and the near-collapse of First Republic Bank. US regulators intervened to take control of Silicon Valley Bank, while a private sector rescue was arranged for First Republic Bank. This, along with a backstop from the Swiss […]
Continue reading On March 17, 2023, the US government took drastic action to respond to the collapse of Silicon Valley Bank and Signature Bank. A bailout of some $250k+ account depositors was proposed, though one adviser argued that this would create “moral hazard,” enabling more irresponsible behavior.[0] To avoid this, the Federal Reserve created a new facility, […]
Continue reading An economic downturn is looming as global banking crisis unfolds. Goldman Sachs on Thursday increased its odds of a recession by 10 percentage points, to 35%, and other economists are even less optimistic that the U.S. will be able to avoid an economic downturn, with those surveyed by Bloomberg putting the odds of a recession […]
Continue reading On March 14th and 17th, 2021, Silicon Valley Bank collapsed and caused a massive financial crisis, prompting the federal government to step in with a bailout.[0] But the question remains: whose fault was it?[1] Was it the bank’s management, regulators, or a combination of both?[0] Primary responsibility for the debacle lies with the bank’s management, […]
Continue reading The recent financial crisis in the United States has reignited debates about the most effective ways to safeguard the crumbling economy and identify potential causes, with economist Peter Schiff arguing that too much government regulation is to blame for the worst of the crisis. Schiff, a prominent economist and gold bug, shared his thoughts on […]
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