Tuesday, December 6

Tag: economy

Federal Reserve hikes interest rates for the fourth time this year
Politics

Federal Reserve hikes interest rates for the fourth time this year

The Federal Reserve took an aggressive step on Wednesday to combat soaring inflation with the announcement of another larger than usual, three-quarters of a percentage point interest rate hike. The increase comes as central banking officials face a tough balancing act: bringing down rising prices amid growing concerns of an economic downturn.The latest increase brings the federal funds rate to between 2.25% and 2.50%, which is where it was at its most recent high in summer 2019 before the coronavirus pandemic. This marks the fourth interest rate hike of the year as consumer prices have risen at the fastest pace in more than 40 years. Five months ago, the federal funds rate was near zero percent. At its June meeting, the Federal Open Market Committee raised the federal funds rate by...
Asian Stocks up After US Inflation Fuels Rate Hike Fears | Business News
Business

Asian Stocks up After US Inflation Fuels Rate Hike Fears | Business News

By JOE McDONALD, AP Business WriterBEIJING (AP) — Asian stock markets rose Thursday after higher U.S. inflation stoked expectations of more rate hikes that investors worry will chill economic growth.Shanghai, Tokyo, Hong Kong and Sydney advanced. Wall Street futures edged lower. Oil prices advanced.Wall Street's benchmark S&P 500 index lost 0.4% on Wednesday after data showed U.S. consumer inflation accelerated to 9.1% in June over a year earlier from May's 8.6%. That was despite three rate hikes this year by the Federal Reserve.Investors worry aggressive action by the Fed and other central banks to cool inflation that is at four-decade highs might derail global growth.Political Cartoons“Growth fears are hitting the markets harder than inflation concerns,” said Stephen Innes of SPI Ass...
Sri Lankan president flees the country amid economic crisis
Politics

Sri Lankan president flees the country amid economic crisis

The president of Sri Lanka fled the country early Wednesday, days after protesters stormed his home and office and the official residence of his prime minister amid a three-month economic crisis that triggered severe shortages of food and fuel.President Gotabaya Rajapaksa, his wife and two bodyguards left aboard a Sri Lankan Air Force plane bound for the city of Male, the capital of the Maldives, according to an immigration official who spoke on the condition of anonymity because of the sensitivity of the situation.Rajapaksa had agreed to step down under pressure. Prime Minister Ranil Wickremesinghe said he would leave once a new government was in place. Lawmakers agreed to elect a new president next week but struggled Tuesday to decide on the ma...
I can turn around Sri Lanka’s economy: PM Ranil Wickremesinghe | Politics News
Politics

I can turn around Sri Lanka’s economy: PM Ranil Wickremesinghe | Politics News

Colombo, Sri Lanka – Ranil Wickremesinghe, the newly appointed prime minister of crisis-hit Sri Lanka, has said he is confident he can turn the economy around – but cautioned it will take 18 months before stability returns. “The year 2023 is going to be difficult, but by 2024 things should pick up,” Wickremesinghe told Al Jazeera last week [Thursday] in a wide-ranging interview at his official residence in the capital, Colombo. The 73-year-old leader, who in May became prime minister for the sixth time, said that he took up the job under extraordinary circumstances. “We had nearly two days without a government; things were getting out of hand,” he said, recalling the mass protests over shortages of fuel and electricity that forced Mahinda Rajapaksa, his predecessor and the brother of Presi...
Add Rent to the Rising Costs Bedeviling Small Businesses | Business News
Business

Add Rent to the Rising Costs Bedeviling Small Businesses | Business News

By MAE ANDERSON, AP Business WriterNEW YORK (AP) — The rent has come due for America’s small businesses and at a very inopportune time.Landlords were lenient about rent payments during the first two years of the pandemic. Now, many are asking for back rent, and some are raising the current rent as well. Meanwhile, most of the government aid programs that helped small businesses get through the pandemic have ended while inflation has sharply pushed up the cost of supplies, shipping, and labor.Martin Garcia, owner of gift and décor store Gramercy Gift Gallery in San Antonio, Texas, survived the first part of the pandemic in part by paying his landlord whatever rent he could each month. Then in August 2021, after the federal moratorium on evictions ended, his landlord asked for the full amoun...
WTO Ministers Reach Deals on Fisheries, Food, COVID Vaccines | Business News
Business

WTO Ministers Reach Deals on Fisheries, Food, COVID Vaccines | Business News

By JAMEY KEATEN, Associated PressGENEVA (AP) — After all-night talks, members of the World Trade Organization early Friday reached a string of deals and commitments aimed to limit overfishing, broaden production of COVID-19 vaccines in the developing world, improve food security and reform a 27-year-old trade body that has been back on its heels in recent years.WTO Director-General Nzogi Okonjo-Iweala, after a pair of sleepless nights in rugged negotiations, concluded the WTO’s first ministerial conference in 4-1/2 years by trumpeting a new sense of cooperation at a time when the world faces crises like Russia's war in Ukraine and a once-in-a-century pandemic that has taken millions of lives.“The package agreements you have reached will make a difference to the lives of people around the w...
Russia Hits Kyiv With Missiles; Putin Warns West on Arms | Business News
Business

Russia Hits Kyiv With Missiles; Putin Warns West on Arms | Business News

By JOHN LEICESTER, Associated PressKYIV, Ukraine (AP) — Russia took aim Sunday at Western military supplies for Ukraine, launching airstrikes on Kyiv that it claimed destroyed tanks donated from abroad, as Vladimir Putin warned that any Western deliveries of longer-range rocket systems would prompt Moscow to hit “objects that we haven't yet struck.”The Russian leader's cryptic threat of military escalation did not specify what the new targets might be. It came days after the United States announced plans to deliver $700 million of security assistance for Ukraine that includes four precision-guided, medium-range rocket systems, as well as helicopters, Javelin anti-tank systems, radars, tactical vehicles and more.Military analysts say Russia hopes to overrun Ukraine's embattled eastern indus...
Biden Struggles to Defend His Presidency Amid Setbacks | Politics
Politics

Biden Struggles to Defend His Presidency Amid Setbacks | Politics

President Joe Biden has a lot of problems, and he's spent the week trying to convince Americans he's doing something about them. From baby formula shortages to the war in Ukraine to high inflation, the president wants voters to know he has a plan to ease their pain.But those plans, experts say, may be just that – plans and proposals, many of which need unlikely approval by an uncooperative Congress or are subject to the whims of hostile foreign leaders, unpredictable markets or other forces beyond any president's control.And Biden, facing an unhappy public that emerged from a pandemic only to be hit with big grocery and gas bills, a war and two traumatizing mass shootings, is having a hard time making his case that he is taking whatever action the Constitution allows him to do.Political Ca...
China’s Russia Dealings Irk US, but Don’t Breach Sanctions | Business News
Business

China’s Russia Dealings Irk US, but Don’t Breach Sanctions | Business News

By JOE McDONALD, AP Business WriterBEIJING (AP) — China’s support for Russia through oil and gas purchases is irking Washington and raising the risk of U.S. retaliation, foreign observers say, though they see no sign Beijing is helping Moscow evade sanctions over its war on Ukraine.Beijing's importance as a lifeline to Russian President Vladimir Putin rose Monday after the 27-nation European Union, the main market for fossil fuels that supply most of Moscow's foreign income, agreed to stop oil purchases.President Xi Jinping’s government declared ahead of Russia's Feb. 24 attack that it had a “no limits” friendship with Moscow and has kept the West guessing about whether it might bail Putin out.China rejects the sanctions as illegal because the United States, Europe and Japan cut off Russia...
Biden Launches Indo-Pacific Trade Deal, Warns Over Inflation | Business News
Business

Biden Launches Indo-Pacific Trade Deal, Warns Over Inflation | Business News

By JOSH BOAK and AAMER MADHANI, Associated PressTOKYO (AP) — President Joe Biden on Monday launched a new trade deal with 12 Indo-Pacific nations aimed at strengthening their economies as he warned Americans worried about high inflation that it was “going to be a haul” before they feel relief. The president said he does not believe an economic recession is inevitable in the U.S.Biden, speaking at a news conference after holding talks with Japan’s Prime Minister Fumio Kishida, acknowledged the U.S. economy has “problems” but said they were "less consequential than the rest of the world has.”He added: “This is going to be a haul. This is going to take some time," even as he rejected the idea a recession in the U.S. was inevitable.The comments came just before Biden's launch of the Indo-Pacif...