US Fed chair admits recession a ‘possibility’ after rate hikes
WASHINGTON, June 22 — The US economy remains strong but a series of aggressive rate hikes meant to cool soaring inflation could eventually trigger a recession, Federal Reserve...
Powell, whose testimony before senators was closely watched by investors and analysts, also said the world’s largest economy faces an “uncertain” global environment and could see further inflation “surprises.”But when peppered with questions about the prospect of a recession, Powell admitted it could not be ruled out.
In his opening remarks, Powell insisted the US economy “is very strong and well positioned to handle tighter monetary policy.”The Fed is facing intense criticism that it was too slow to react to the changing economy, which benefited from a flood of federal government stimulus.
PM: Cabinet ministers have agreed to take 20% pay cut
PUTRAJAYA: The Cabinet ministers have agreed to a 20% pay cut until Malaysia reaches economic recovery, says Prime Minister Datuk Seri Anwar Ibrahim. Read more >>
US home sales slide as prices break above US$400,000 for first timeWASHINGTON (June 21): US existing home sales tumbled to a two-year low in May as prices jumped to a record high — topping the US$400,000 mark for the first time — and mortgage rates increased further, pushing out entry-level buyers from the market.Despite the fourth straight monthly drop in sales and declining affordability, reported by the National Association of Realtors on Tuesday, the housing market remains fairly hot, with properties typically staying on the market for a record low 16 days. With
Lebanon FX reserves down US$2.2b in 2022, US$11b left, says central bank governorBEIRUT, June 22 — Lebanese central bank governor Riad Salameh said yesterday the bank’s foreign currency reserves had dropped by US$2.2 billion (RM9.67 billion) so far in 2022...
Amber Court Apartment not haunted, residents fed up with rumoursKUALA LUMPUR: Residents of the Amber Court Apartment here are fed up with rumours and bad press that the building is haunted. Hahahaha,I was there before,but too scary,u wanna me send a picture, whatever u said,but it's look like ghost place,and can u answer me? It is true,there is one room was locked until now, something cruel,I was told someone was killed inside that room?
Ringgit opens marginally higher against US dollarKUALA LUMPUR, June 21 ― The ringgit opened marginally higher against the US dollar today despite fragile market sentiments over expectations of an aggressive monetary... lol 'marginally higher' my ass
Gold inches higher as US dollar dips; wider rate-hike narrative in focusBENGALURU (June 21): Gold prices edged up on Tuesday as the US dollar eased, while investors kept a keen eye on posturing from major central banks on interest rate hikes for a clearer outlook for bullion.A weaker US dollar makes greenback-priced bullion more attractive for buyers holding other currencies.Spot gold was up 0.2% at US$1,841.13 per ounce by 0200 GMT, after largely range-bound trading on Monday. US gold futures firmed 0.1% to US$1,842.90. However, benchmark US 10-year Treasury yields
Ringgit opens marginally higher against US dollarKUALA LUMPUR (June 21): The ringgit opened marginally higher against the US dollar today despite fragile market sentiments over expectations of an aggressive monetary tightening by the United States Federal Reserve (Fed) that would take a toll on the economy, said a dealer.At 9 am, the local currency traded at 4.3970/4015 against the greenback from yesterday's close of 4.3985/4015.Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said talks of a possible recession would also make market participants to
for the latest news you need to know.A WASHINGTON (June 21): US existing home sales tumbled to a two-year low in May as prices jumped to a record high — topping the US$400,000 mark for the first time — and mortgage rates increased further, pushing out entry-level buyers from the market.for the latest news you need to know.Amber Court Management Corporation chairman Datuk Seri Dr KK Chai said more than 100 residents gathered outside the apartment on Saturday (June 18) to protest against YouTubers and conmen who come to the apartment to make videos on supernatural activity, claiming that the building was haunted.
Wednesday, 22 Jun 2022 11:23 PM MYT WASHINGTON, June 22 — The US economy remains strong but a series of aggressive rate hikes meant to cool soaring inflation could eventually trigger a recession, Federal Reserve Chair Jerome Powell cautioned today. Powell, whose testimony before senators was closely watched by investors and analysts, also said the world’s largest economy faces an “uncertain” global environment and could see further inflation “surprises. With supply still undesirably low, prices could remain elevated, though sellers are reducing the list price in some areas where bidding wars were prevalent.” The Fed chair again stressed that the US central bank understands the hardship caused by rising prices and is committed to bringing down inflation, which has reached a 40-year high.67 billion) so far in 2022 to about US$11 billion, about a third of the level three years ago. Last week, the Fed announced the sharpest interest rate increase in nearly 30 years and promised more action to combat the price surge, with gas and food costs skyrocketing and millions of Americans struggling to make ends meet."But in the absence of a deep and sustained economic downturn, home sales should not drop as they did in the housing bust — allowing prices to continue to move higher on average. But when peppered with questions about the prospect of a recession, Powell admitted it could not be ruled out. He said for decades, the apartment has been labelled as haunted.
“It’s not our intended outcome at all, but it’s certainly a possibility,” he told the Senate Banking Committee.4% to a seasonally adjusted annual rate of 5. Once celebrated as a financial wizard, Salameh has been on the defensive since 2019, when Lebanon slipped into an economic meltdown that has seen the currency lose more than 90 per cent of its value. “And frankly, the events of the last few months around the world have made it more difficult for us to achieve what we want, which is two per cent inflation and still a strong labor market.” In his opening remarks, Powell insisted the US economy “is very strong and well positioned to handle tighter monetary policy. Sales rose in the Northeast, but declined in the Midwest, the West and densely populated South.” “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store,” the Fed chief said in his semi-annual appearance before Congress.2 billion dollars since the end of the year,” he said yesterday. Policymakers “will need to be nimble” given that the economy “often evolves in unexpected ways,” he said.40 million units. "These baseless and irresponsible claims are damaging the name of the apartment.
The Fed is facing intense criticism that it was too slow to react to the changing economy, which benefited from a flood of federal government stimulus. Last week’s super-sized 0.0 million to 4. Lebanon is set to name a new prime minister tomorrow, who would then be tasked with forming a new government.75-percentage-point increase in the benchmark lending rate was the third since March, taking the policy rate up a total of 1.5 points. Home resales, which account for the bulk of US home sales, tumbled 8. Powell at the time said more such increases were likely in July. The statement contradicts the position of Lebanon’s deputy prime minister Saade Chami, who told Reuters he was “not seeing any benefits to keeping” banking secrecy in the country. "They will take legal action," he said, adding that his legal team is looking into the matter.
“I think it’s going to be very challenging. Sales in May were mostly closings on contracts signed one to two months ago, before mortgage rates started accelerating amid a surge in inflation expectations and the Federal Reserve's aggressive interest rate hikes. We’ve never said it was going to be easy or straightforward,” Powell said when asked about efforts to stave off recession. ‘Essential’ to curb inflation In addition to easing the financial strain on less-wealthy American families, the Fed chief said tamping down inflation was “essential.78%, according to data from mortgage finance agency Freddie Mac... The rate has surged more than 250 basis points since January.
if we are to have a sustained period of strong labor market conditions that benefit all.” The US economy recovered quickly from the Covid-19 pandemic, helped by robust consumer spending, and has continued to create jobs at a strong pace, averaging 408,000 in the past three months. It was also the latest indication that the US central bank's rapid monetary policy tightening was slowing the overall economy. Unemployment is near a 50-year low. But the buoyant demand for homes, cars and other goods clashed with transportation and supply chain snarls in parts of the world where Covid-19 has remained a challenge.01 in May from 0. That fuelled inflation, which got dramatically worse after Russia invaded Ukraine in late February and Western nations imposed stiff sanctions on Moscow, sending food and fuel prices up at a blistering rate.
Powell said the fallout from the conflict “is creating additional upward pressure on inflation. A zero value for the monthly index has been associated with the economy expanding at trend growth.” In addition, “Covid-19-related lockdowns in China are likely to exacerbate ongoing supply chain disruptions.” But he noted that the issue is not unique to the United States. The Fed has increased its benchmark overnight interest rate by 150 basis points since March. “Over the past year, inflation also increased rapidly in many foreign economies,” he said. In fact, many major central banks have joined the Fed in beginning to tighten monetary policy — with the notable exception of the Bank of Japan. The dollar fell against a basket of currencies.
Powell pointed to signs that rising rates are having an impact, as business investment slows and “activity in the housing sector looks to be softening, in part reflecting higher mortgage rates.” Average home loan rates jumped to 5. Slow migration The housing market is the sector most sensitive to interest rates.23 per cent in May for a 30-year, fixed-rate mortgage, from 4.98 per cent in April, according to Freddie Mac, while the median price for homes topped US$400,000 (RM1. The median existing house price raced 14.7 million) for the first time.
“The tightening in financial conditions that we have seen in recent months should continue to temper growth and help bring demand into better balance with supply,” Powell said. The US$250,000-US$500,000 price bracket accounted for 42. — AFP Advertisement .