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Policy Rates

All articles tagged with #policy rates

economy2 years ago•3 min saved

China's Central Bank Takes Action with Rate Cuts Amidst Economic Downturn

China's economy slowed further in July, with industrial output growing at a slower pace of 3.7% and retail sales rising by 2.5%, the slowest growth since December 2022. The weak data prompted the central bank to unexpectedly cut key policy rates for the second time in three months. The property sector continued to decline, with investment falling for the 17th consecutive month. The youth jobless rate also rose to a record high in June. The data highlights the need for policymakers to provide more support measures to bolster the economy.

via Reuters|

#china #economic-outlook #economy

finance2 years ago•3 min saved

The Fed's Struggle to Control Inflation: A Status Update.

The Fed's policy rates have been raised by 500 basis points in a little over a year, but "core" CPI, which excludes the volatile food and energy components, has gotten stuck at around 5.5% to 5.7% for the fifth month in a row. Negative real policy rates are still a form of interest rate repression, and are still stimulative of the economy and of inflation. The crybabies on Wall Street are out there in force screaming about those unfair interest rates and clamoring for immediate rate cuts, like in June, to remove this incredible injustice of 5% short-term rates and even lower long-term Treasury yields (the 10-year Treasury yield is at 3.43%, LOL), when core CPI is 5.5%.

via WOLF STREET|

#core-cpi #fed #finance