FED warns of an upcoming recession due to fallout from the U.S. banking crisis, with projections indicating GDP growth of just 0.4% for 2023. Despite inflation data being mostly cooperative with the Fed’s aims, officials have expressed concerns over broader economic conditions, with some members leaning towards a half-point rate rise before the banking problems. Markets currently estimate a 72% chance of one more quarter percentage point rate hike in May before a policy pivot where the Fed cuts before year-end.
Category: World finance
UK Future Fund ‘s Millions Wasted on Failed Firms
Rishi Sunak’s Future Fund, a loan scheme designed to help dynamic start-ups survive the Covid-19 pandemic, has been criticised for funding firms that were not fast-growing and ended up being a drain on taxpayers.
Chancellor declares Britain’s economy ‘back’ despite recent setbacks
Chancellor Jeremy Hunt says Britain’s economy is “back” and his growth strategy is praised, but IMF predicts a 0.3% shrink in 2023.
BRICS Grouping: The Core of the New World Order
The shift from neoliberalism to economic nationalism has widened the wealth gap, leading to a rejection of globalization. Capitalism is adapting, but the future is uncertain, with potential for progress beyond capitalism.
House Republicans Seek $3-4 Trillion in Cuts and Revenue to Raise Debt Ceiling
House Republicans discuss a one-year debt ceiling plan with cuts and revenue raisers to strengthen their negotiating position with the White House.
Diesel Demand Drop Signals Recession: US, China and Europe Hit as Economies Falter
Diesel demand weakens in major economies, signaling reduced industrial activity and consumer spending amid concerns of an impending recession.
Silicon Valley Bank’s Failure Could Devastate America’s Banking System
Federal bailout saved Silicon Valley Bank from collapse, preventing potential havoc on economy. Critics argue the banking system’s vulnerabilities remain.
California ‘s Economy: Tech Layoffs Cause $22.5 Billion Deficit
California’s economy suffers as key industries such as tech and entertainment struggle due to high interest rates, labor unrest, and investor concerns. The state faces a deficit and potential economic problems.
IMF Lowers Global Growth Outlook – Risk of Recession Looms
IMF lowers growth forecast amid concerns of global recession due to rising interest rates and banking system risks.