Author: Financial Reporter
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January CPI Report: Inflation Remains Well Above Fed Target
The Consumer Price Index (CPI), a closely watched measure of inflation, increased 6.4% in January compared to the same month one year ago, according to the Bureau of Labor Statistics.[0] This marks the seventh consecutive month of cooling inflation since peaking at 9.1% in June of 2021, the highest reading since 1981.[1] Core inflation, which…
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Emerging Markets: Poised for Stronger Performance in 2023
Emerging markets (EM) have shown resilience despite a confluence of unprecedented shocks, and appear to be positioned for stronger performance in 2023.[0] The MSCI Emerging Markets Index is up 6.7% so far this year, versus 7.7% for the developed market MSCI World Index.[1] In 2022, this showed roughly a 3 percent drop in performance.[1] Cracks…
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Larry Summers Warns of Inflation Risk if Fed Fails to Act
Former Treasury Secretary Larry Summers warned that the US economy could face a sudden downturn if the Federal Reserve fails to rein in inflation.[0] Speaking on NPR’s ‘Here & Now Anytime’ podcast Wednesday, the American economist and former president of Harvard University said consumer price pressures have eased and the economy is very strong, given…
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Navigating the Markets in the Wake of Recent US Monetary Policy Changes
The Federal Reserve has been steadily raising interest rates in an effort to combat rising inflation, which currently stands at 6.5% in America. On Feb. 1, the Fed lifted its benchmark interest rate another 0.25 of a percentage point to a range of 4.50% to 4.75%. This is the highest level in more than 20…
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Blackstone’s $50 Billion Investment in India: “The Best is Yet to Come
US-based Blackstone, the largest owner of commercial and retail real estate in India, has been investing in India since 2006.[0] The global investment giant has pumped in an impressive $50 billion across sectors ranging from IT services and asset & wealth management to auto components and online learning. With roughly half of its Asia exposure…
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U.S. Stocks Retreat Following Hawkish Fed Remarks, Tech Shares Suffer Losses
This week, U.S. stocks experienced some pressure following hawkish remarks from Federal Reserve officials.[0] The Dow Jones Industrial Average (DJIA) edged down 0.2% in last week’s stock market trading, while the S&P 500 index fell 1.1%.[1] The tech-heavy Nasdaq Composite lost 2.4%.[1] All three indexes closed in the green on Tuesday.[2] After jumping 1.3% the…
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Russia Cuts Oil Production by 500,000 Barrels Amid Price Caps, Global Fuel Prices Rise
On Friday, Russia announced that it would cut its oil production by 500,000 barrels a day in March, as a response to Western energy sanctions and price caps.[0] This cut is equivalent to around 5 percent of Russian oil output and could have a major impact on global fuel prices.[1] The price caps, which were…
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Wells Fargo & Co. Research Note: Bear Market Over, S&P 500 Predicted to Reach 4,200 Points by Year-End
Wells Fargo & Co., one of America’s leading banks, has recently released a research note stating that the bear market in stocks is over.[0] The report was produced by the bank’s top analyst, Chris Harvey, who believes that the market could be entering “a different animal” and is not yet bullish. The bear market, which…
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Lael Brainard to Become First Woman to Head National Economic Council Since 1996
President Joe Biden is set to name Federal Reserve Vice Chair Lael Brainard as the head of his National Economic Council (NEC), according to two sources familiar with the matter.[0] Brainard, who has served on the Fed’s board since 2014, will become the first woman to head the agency since 1996.[1] Jared Bernstein, a longtime…
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Fed Continues Battle to Rein in Inflation with Fresh US CPI Report
The Federal Reserve’s battle to rein in inflation continues, with Tuesday’s US consumer inflation report expected to show prices rising briskly from the prior month. The Consumer Price Index (CPI) is forecast to rise 0.4% month-on-month and 6.2% year-on-year, while the core CPI is seen increasing 0.3% and the annual rate dropping to 5.5%.[0] The…