Monetary policy Headlines

  • 5 of the world's biggest economies at risk of recession

    Five big economies are at risk of recession. It won't take much to push them over the edge. The UK economy shrunk in the second quarter, and growth flat lined in Italy. Data published Wednesday show Germany's economy, the world's fourth largest, contracted in the three months to June. Mexico just dodged a recession— usually defined as two consecutive quarters of contraction — and its economy is expected to remain weak this year. Data suggest Brazil slipped into recession in the second...

    WPLG
  • UK inflation edges back above 2% target in July

    Official figures show that inflation in Britain has unexpectedly risen back above the Bank of England's target, but with the Brexit date approaching there is little pressure on policymakers at the central bank to raise interest rates

    ABC News
  • Dow rises nearly 400 points after US delays certain tariffs on tech

    Stocks soared Tuesday, erasing an early deficit, after the United States delayed some tariffs on Chinese goods. The US Trade Representative announced a delay in new tariffs on several categories of Chinese-made consumer goods until December 15. Those goods include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. The Dow finished the day with a gain of about 373 points, or 1.4%, recovering much of the losses from...

    WPLG
  • Venezuela's moribund economy shows a pulse amid US sanctions

    Venezuela's moribund economy is showing a surprise bounce from the government's little-noticed decision to dismount a decade of rigid currency controls, though economists caution that the dose of new life is unlikely to last

    ABC News
  • IMF contradicts Trump: China hasn't manipulated its currency

    Contradicting Trump administration, IMF says China hasn't manipulated its currency, the yuan

    ABC News
  • Why aren't Americans buying more homes?

    Interest rates are dropping and American mortgages are cheaper than they've been in years. The US economy is strong. That's a recipe for a booming housing market — but it isn't booming at all. In June, existing home sales decreased 1.7% from May and 2.2% from a year earlier. That's about on par with where home sales were in 2015. America's housing market has stagnated for four years. Last week, the 30-year fixed-rate mortgage fell to its lowest level since November 2016, according to the...

    WPLG
  • Trump calls on Fed to make 'substantial' rate cuts

    Trump calls for Federal Reserve to make 'substantial' rate cuts to lower dollar's value

    ABC News
  • India's central bank cuts rates to 9-year low as economy stumbles

    India's central bank has cut interest rates for a fourth time this year, slashing its key lending rate to the lowest level in nine years in a bid to support the country's faltering economy. The Reserve Bank of India said Wednesday that another rate cut was needed to boost growth and private investment. Shaktikanta Das has now cut rates at each of his four meetings since taking over as governor of the central bank in December. The economy has slumped in recent months, with gross domestic...

    WPLG
  • Gold climbs to six-year high, bond yields collapse

    Frazzled investors are rushing to buy gold and government bonds as fears of a global recession, sparked by a trade war, grow more real. The push into safer investments lifted US gold futures briefly above $1,500 per ounce on Wednesday for the first time in more than six years. US Treasury yields, which move opposite price, collapsed to levels unseen since just before President Donald Trump's 2016 election. Meanwhile, investors sold stocks. The Dow fell as much as 589 points, or 2%, in the...

    WPLG
  • Cash no longer king as rates plunge around the world

    When the Federal Reserve cut interest rates for the first time since 2008 last week, people were quick to point out how that was good news for consumers and companies looking to borrow money. While lower rates are good news for anyone with debt, they are a curse for anyone needing to keep their money in cash. "It's a fantastic time for businesses to borrow for expansion since the long-term bond yield is crazy low. But low rates are a double-edged sword," said Gene Dunford, corporate banking...

    WPLG
  • Stocks slide as rate cuts stoke fear of an economic slowdown

    U.S. stocks slide as central banks around the world cut rates and stoke fear that the U.S.-China trade war will damage global economic growth.

    ABC News
  • India's central bank cuts lending rate to 5.40%

    India's central bank has cut its key interest rate for the fourth consecutive time, reducing the repo rate by 0.35% to 5.40% to shore up the economy

    ABC News
  • Goldman Sachs: Trade war will drag on until after 2020 election

    The trade war between the United States and China has sharply intensified in recent days, raising the risk that the bruising battle will drag on through the 2020 presidential election. Goldman Sachs warned clients on Monday that a trade agreement "now looks far off" because officials in Washington and Beijing are "taking a harder line." The Wall Street firm said the most likely outcome is that no deal will be reached before the 2020 election and that President Donald Trump's threatened 10%...

    WPLG
  • Asian markets mixed as China sets the yuan lower again

    Asian markets were calmer Wednesday as central banks across the region moved aggressively to shore up slowing economic growth. Currency fears took a back seat despite China fixing the yuan at another new 11-year low within a whisker of the symbolically important 7 to the dollar level. China's Shanghai Composite Index ended down 0.3%, marking a sixth consecutive day of declines. Japan's Nikkei lost 0.3%, extending its losing streak to a fourth straight day. South Korea's Kospi dropped 0.4%, down...

    WPLG
  • New Zealand cuts benchmark interest rate to lowest-ever 1%

    New Zealand's central bank has cut its benchmark interest rate to an all-time low of 1% as it forecasts tougher economic conditions ahead

    ABC News
  • Global selloff continues after US labels China currency manipulator

    Stocks in Asia clawed back some of their losses and US stock futures rebounded on Tuesday after China took steps to shore up the falling yuan. Major Asian markets still ended Tuesday in the red: Hong Kong's Hang Seng Index finished down 0.7%, while Japan's Nikkei closed 0.7% lower. China's Shanghai Composite Index lost 1.6%. South Korea's Kospi fell 1.5%. Taiwan's Taiex settled lower by 0.3%.But they recovered significantly from earlier in the day, when all of those indexes fell by more than...

    WPLG
  • US Treasury Department labels China a currency manipulator

    Beijing pushed down the value of its yuan, escalating the trade conflict.

    ABC News
  • US names China a currency manipulator after Beijing pushes down the yuan

    US names China a currency manipulator after Beijing pushes down the yuan

    ABC News