How does the Central bank control inflation?
You may have heard in the news in the last year, that the Fed has been raising the interest rate. In this post, I will… Read More »How does the Central bank control inflation?
You may have heard in the news in the last year, that the Fed has been raising the interest rate. In this post, I will… Read More »How does the Central bank control inflation?
In this post, we will discuss the top 6 economic trends that will become more popular in the year 2024. 2. The continued growth of… Read More »Top 6 economic trends
Devastating monsoons, on which Indian agriculture relies heavily, are the main reason affecting this price surge.
The unpredictable weather has wreaked havoc on rice production in India, creating concerns about food supplies in India and beyond.
And that’s why the Indian government had to make some tough decisions.
So, there’s been some big news in the banking world. First, Silicon Valley Bank, which had a lot of high-profile tech investors as clients, collapsed… Read More »Why did SVB collapse?
The bureau of labor statistics (BLS) just released the inflation number for January 2023 for the United States.
There is a 0.5% increase from the December number, and inflation sits at still a whooping high of 6.4% over the last 12 months from January 2022.
What people like you and me think about inflation directly impacts the actual inflation rate. So, if we think inflation will be high in the… Read More »How does people’s expectation about inflation affect the actual inflation?
Yesterday, in the news, I read President Biden saying the US had 0% inflation in July. The BLS, the official source of inflation numbers, reported… Read More »Did inflation fall to 0% in the US in July?
Two days ago, President Joe Biden proudly posted that the unemployment rate in the US was 3.5% in July. This matched the lowest rate in… Read More »The jobs market in the US is still going strong
MF predicts further slowdown for the world economies
The Fed decided to raise the target range for the federal funds rate from 2.25% to 2.5%.
Inflation is usually driven by strong consumer demand, which is not matched by the supply. Supply bottlenecks with China during the Covid pandemic, Ukraine war, etc have all contributed to a weaker supply of many essential items we use every day. Since many of the supply chain issues can’t be fixed in short term, the Fed is trying to govern the demand aspect of the inflation. By raising interest rates, and making borrowing more expensive, the Fed is hoping to weaken Americans’ willingness to spend money and ultimately bring inflation to its 2% target level.