Tag: inflation

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US banks made $1tn windfall from Fed’s higher rates

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US banks made $1tn windfall profit by failing to pass on to savers the higher interest rates that were kept in place by the Federal Reserve for the past two and half years. Lenders earned higher yields for their deposits at the Fed but kept rates lower for many savers, according the review of Federal Deposit Insurance Corporation data. The boost to the country’s in excess of 4, 000 banks has helped increase their profit margin. While rates on some savings accounts were raised in line with the Fed’s target of more than 5 per cent, the majority of depositors, … Continue reading US banks made $1tn windfall from Fed’s higher rates

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Pound hits $1.30 amid global market jitters

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The Sterling Pound hit its highest level against the dollar in a year on Wednesday as investors bet on UK interest rates staying higher for longer. The data reveal the rate of inflation was proving more stubborn than expected by some analysts which prompted traders to cut bets on an easing of rates in August, and sent the pound above $1.30 for the first time since last July. The Pound has also boosted by market hoping new Labour government will offer economic stability. UK inflation was steady in June, in line with Bank of England’s target rate of 2 per … Continue reading Pound hits $1.30 amid global market jitters

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Central Banks could bring about price stability

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Shock Value tells the untold story of prices and price stabilisation in the United States, many foundational moments in American economic history – the establishment of paper money, wartime price controls, the rise of the modern Federal Reserve- occurred during financial panics as prices either inflated or deflated sharply. The government’s decisions in these moments, intended to control price fluctuations, have produced both lasting effects and some of the most contentious debates in the American’s history. Shock Values reveals how the American state and been shaped by a massive, ever-evolving effort to insulate its economy from the real and perceived … Continue reading Central Banks could bring about price stability

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Unilever’s Ice cream businesses valued around €17 bn to be sold

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Unilever plans to hive off it’s ice cream business including Walls and Ben & Jerry’s. Unilever is drumming up interest from private equity groups for its ice cream division after the consumer goods business announced  plans to hive off the unit. Both Morgan Stanley and JP Morgan had reached out to buy out investors to solicit interest for  popular ice cream brands  like Wall’s Magnum and Ben & Gerry’s valued at around €17 bn. This move comes after CEO Hein Schumacher set out plans to split off ice cream business and cut  7, 000 jobs, and expects the ice cream … Continue reading Unilever’s Ice cream businesses valued around €17 bn to be sold

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Currency must be defended from democratic interference

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After the 2008 financial crisis, when the critical attention shifted from the economy to the most fundamental feature of all market economies, money, 2022, is turning out to be the year that puts the politics back into the monetary policy, with the impending fight for the next Conservative party leader between Rishi Sunak and Liz Truss, “to reduce the tax now or later”.  For over the last 30 years inflation was dormant despite the tremors of the tech crash and the global financial crisis, even the exceptional monetary policy implemented after 2008, failed to provoke any real political controversy. The … Continue reading Currency must be defended from democratic interference