Joseph Lavorgna, counselor to Treasury Secretary Scott Bessent, believes tariffs are not inflationary and says economists who have been predicting that prices would rise due to President Donald Trump‘s import duties are wrong. Where many such economists saw effects of tariffs in consumer price inflation data last week, Lavorgna was not persuaded. Economists had been … Read more
Chinese middlemen launder the proceeds of North Korean hackers’ cyber heists while Chinese ships deliver sanctioned North Korean goods to Chinese ports. Chinese companies help North Koreans workers – from cheap labourers to well-paid IT specialists – find work abroad. A Beijing art gallery even boasts of North Korean artists working 12-hour days in its … Read more
WASHINGTON: U.S. President Joe Biden on Monday summoned the four top congressional leaders to the White House next week after the Treasury warned the government could run short of cash to pay its bills as soon as June. The U.S. Treasury said that it could run out of money to pay all of the government’s … Read more
Mumbai: The Reserve Bank of India has extended its US bond buying spree to the fourth consecutive month, amid surging US treasury yields. India’s investment in US treasury securities surged by a net $9.2 billion in August to $221.2 billion, the highest in nearly two years, show latest data compiled by ETIG. A tiny part … Read more
By Abhishek Vishnoi Veteran investor Mark Mobius said the recent spike in US Treasury yields has room to run as market participants are underpricing inflation risks. The yields “can go much much higher,” Mobius said in an interview on Bloomberg Television, as investors won’t be buying treasuries if their yields are far below the rate … Read more
Palladium extended its blistering rally to an all-time high within striking distance of $3,000 on Friday on supply concerns and bets for improving demand, while gold pulled back on strong US economic data. Palladium jumped more than 3% to a record high of $2,925.14 per ounce, poised for a second straight weekly gain. Many analysts … Read more
FRANKFURT: The European Central Bank said Thursday it would significantly ramp up the pace of its pandemic emergency bond buys, in a bid to soothe market jitters about a rise in government borrowing costs. The move over the next quarter is aimed at “preventing a tightening of financing conditions” while the eurozone economy is still … Read more
A stable rupee also squeezed the chances of accretion in the currency and gold revaluation account (CGRA), even as there is debate on whether RBI should dig into this account to pay the government. Synopsis The returns for the Reserve Bank of India (RBI) are likely to be squeezed with investments in low yielding US … Read more
LONDON/NEW YORK: Typically a boon for emerging markets, this year’s plunge in the US dollar may fail to boost the developing world’s prospects as the raging pandemic hits economic activity, increases poverty and exposes weak policymaking. The greenback plummeted by its most in a decade in July and US Treasury yields fell to record or … Read more