Category: Banking and Financial Institutions

Why the Fed Might Raise Interest Rates When Borrowing Costs Are Surging

The New York Times – Business:
Elevated interest rates have raised the cost of mortgages and car loans without dampening consumer spending.
The World Economy Is Becoming Wary of the U.S.

The New York Times – Business:
America’s position of global economic stability is starting to look shakier as the Trump administration piles on debt and doubles down on sanctions.
Warsh Set for Showdown With Trump as Fed Faces Pressure to Raise Rates

The New York Times – Business:
The Federal Reserve is expected to raise interest rates on Wednesday, putting Kevin M. Warsh, the chairman, at odds with the administration just before the midterms.
European Central Bank Raises Rates in Bid to Quell Inflation

The New York Times – On the Runway:
The bank, fighting price pressures spurred by the war in the Middle East, raised its benchmark rate to 2.5 percent.
Help! We Canceled a Vacation Rental 2 Years Ago. Where’s Our $13,000?

The New York Times – Travel:
In July 2024, a couple used Booking.com to reserve two apartments in Hawaii, but quickly changed their minds. Getting a refund was no day at the beach.
Treasury Plans $6 Billion in Debt Repurchases to Battle Rising Yields

The New York Times – Business:
Bond yields rose after the announcement, suggesting investors were underwhelmed by the size of the purchases.
Trump Threatens to Halt Some Trade Unless the Fed Cuts Rates

The New York Times – Business:
The president said he could halt trade between the United States and countries with which it has a trade deficit if the central bank doesn’t do his bidding.
The Bond Markets Are Pushing Up Rates. Will Central Banks Follow?

The New York Times – Business:
Around the world, rising bond yields reflect shifting expectations on how fast policymakers will raise interest rates.
U.A.E. To Review Banque Misr, Targeted by Iran Sanctions

The New York Times – Business:
The Treasury Department accused Banque Misr’s branches in the United Arab Emirates of helping Iran. The Emirati central bank promised an examination.
Warsh, After Talking Tough on Inflation, Faces a ‘No-Win Situation’ on Rates

The New York Times – Business:
Kevin M. Warsh, the chairman of the Federal Reserve, must soon decide whether to raise interest rates if inflation does not ease, even if it draws President Trump’s ire.
Fed Chairman Seeks to Calm Concerns About Elevated Inflation

The New York Times – Business:
In a high-profile speech, Kevin M. Warsh said that the Federal Reserve was chiefly responsible for taming inflation. If price increases did not return to the central bank’s target quickly, “we have work to do,” he said.
Wall Street Loved Scott Bessent and Kevin Warsh. Not Anymore.

The New York Times – On the Runway:
We are approaching a credibility crisis with Scott Bessent and Kevin Warsh leading our economy.