With an objective of boosting economic growth, Serbia has slashed interest rate for a consecutive second month. The inflation rate is below the government's target and GDP growth rate was also eased in 2014. The decision of Serbia, the biggest former Yugoslav republic, to slash interest rate for a consecutive second month surprised everyone as it unexpected one both the times.
Tags: Federal Reserve
Two Fed officials say rate hike likely next month
There is a possibility of an interest rate hike next month, according to two senior officials of the Federal Reserve. Speaking before the House Financial Services Committee during a hearing on financial regulation, Fed Chairperson Janet Yellen said the economy had been growing at a pretty good clip, an indication it might be time to raise short-term interest rates.
Fed wants to shield taxpayers when banks go down
The Federal Reserve is implementing new rule especially in a bid to strengthen the global financial institutions. According to the proposal, all banks that operate in the US will be able to go down smoothly without causing too much collateral damage to the public.
Opinion among Federal Reserve Policymakers on U.S. rate hike isn't as divided as it seems
There are mixed opinions coming from the US Central Bank in the past few weeks, but the Federal Reserve policymakers aren't really as divided as they seem as they work under the same framework in determining when to increase interest rates.
Growth in U.S. employment could make Fed hike interest rate
American employers increased jobs at a quick pace last September, a signal that the labor market is close to full strength. This trend could possibly persuade the Federal Reserve to raise interest rates at one of its two remaining meetings this year, according to the Business Insider.
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The International group of governments and central bank governors from 20 major economies agreed Saturday to hasten slow growth, saying the low interest rates will not be enough to accelerate economic improvement, but they are optimistic that growth will happen.
Even giant Goldman Sachs has been adversely affected by the stock market chaos, as its 2015 distress trading desk lost about $50 million to $60 million.
Selling on Wall Street was so drastic Monday that the stocks and exchange-traded funds went through unprecedented emergency halts 1,200 times.
The last week witnessed a sudden jump in new applications for unemployment benefits while the four-week average showing a healthy situation in the job market as it touched a record low since 15 April 2000.
Cities such as Columbus (Ohio), San Francisco, Louisville (Ky), Virginia Beach (Va) are registering encouraging growth in wages of over five percent while other cities have only 2.1% growth.
Federal Reserve's Vice Chairman Stanley Fischer stated that although the US has achieved almost full employment, inflation is temporarily low.
The US State and Local government pension funds registered worst performance since 2012 following the bleak performance in global stock markets and bonds.
The S&P 500 and Nasdaq Composite rose on Wednesday following three days of losses as tech shares advanced, while the blue-chip Dow index ticked lower, weighed by Disney's largest daily drop in almost seven years.
The 40-year record high of US dollar against some major currencies is ringing alarm bells for another currency crisis. The ongoing situation could also trigger for another round of crash in the emerging markets. The world is more integrated now than in those days of 1980s and 1990s that witnessed major currency crisis.
