Inflation

Speaking in front of the House Financial Services Committee on Wednesday, Federal Reserve Chair Jerome Powell expressed increased concerns about price spikes, and said it's impossible to be sure that inflation will slow over the next year, the Associated Press reported. Powell said that while many economists regard the highest rates of inflation since 1990 as a temporary response by the market to challenges along the supply chain of dozens of products, no one can be certain that prices will improve at predicted rates. "The point is, we can't act as if we're sure of that," he said. "We're not at all sure of that. Inflation has been more persistent and higher than we've expected." At the same hearing, Treasury Secretary Janet Yellen defended various spending proposals of the Biden administration. Multiple Republicans on the committee blamed Biden's plans for the high inflation rates, claiming the $2 trillion social and environmental spending bill being debated in Congress …

[Read more...] about Federal Reserve can’t be sure inflation will ease in 2022, prices “higher” than expected

In a fresh sign of his growing concerns about inflation, Chair Jerome Powell said Wednesday that the Federal Reserve can't be sure that price increases will slow in the second half of next year as many economists expect. Powell told the House Financial Services Committee that most economists regard the current price spikes, which have sent consumer inflation to a three-decade high, as largely a response to the pandemic's persistent disruptions to supply and demand. As Americans have spent more time at home, they have ramped up spending on furniture, appliances, laptop computers. Soaring demand for such goods, combined with parts shortages, have resulted in supply chain snarls and higher prices. In the past, Powell has frequently expressed his belief that these supply-and-demand imbalances should fade as the pandemic eases, which would reduce inflation. But on Wednesday, he said that while such an outcome is “likely," it is only a forecast. “The point is, we can't …

[Read more...] about Powell: Fed ‘not at all sure’ inflation will fade next year

THIS is the "floating death trap" that sank with the loss of 27 migrants including a pregnant woman and three kids - after survivors claim it was hit by a container ship. Horrific details of the disaster emerged today as at least two more dangerously crowded rafts set sail from the French coast for the UK. This morning about 40 people packed into the two boats, reports the BBC. Before first light, a number of shivering migrants were seen being led ashore at Dover after being rescued by the RNLI . Last night four suspected people smugglers who are alleged to have organised Wednesday’s fatal crossing were placed in custody facing manslaughter charges. Just two men made a "miracle escape" from the flimsy inflatable - which was pictured by a fisherman after capsizing and losing most its air. The victims were mostly so-far unidentified Iraqi Kurds and Somalians who had paid the equivalent of up to £6,000 each. Very few of them were wearing life jackets, and most are …

[Read more...] about Pregnant woman & 3 children among 27 migrants killed after ‘floating death trap’ inflatable was ‘hit by container ship’

The Organization for Economic Cooperation and Development noted that rising price levels are tampering with global economic recovery from COVID-19 and the lockdown-induced recession. According to the group’s most recent economic outlook , the economic rebound is “losing momentum” amid supply chain bottlenecks, lockdowns, and scarcity of certain materials — all of which are contributing to stronger-than-expected inflation: Alongside cost pressures from manufacturing supply bottlenecks and food price increases, imbalances in the energy market are a key factor driving up inflation in all economies. Gas prices have risen sharply, notably in Europe, and risks are high, with storage levels around 28% lower than they would normally be at this time of the year. Rising food and energy costs are inevitably hitting low-income households the hardest. Inflationary pressures are proving stronger and more persistent than expected a few months ago. Consumer price inflation in the …

[Read more...] about OECD Forced To Slash Economic Growth Forecasts Due To High Inflation | The Daily Wire

Turkey’s central bank has intervened to support the lira for the first time in seven years after weeks of sharp falls that dragged the currency to a record low against the dollar. Policymakers intervened in foreign exchange markets following what they called “unhealthy price formations”, pushing the lira up as much as 8.5pc. The currency has been into freefall in recent weeks, after President Recep Tayyip Erdogan started pushing for interest rate cuts despite surging inflation in the country. In a speech ahead of the central bank’s announcement, he said rate cuts would continue in the run-up to the elections in 2023, causing the currency to drop further. Mr Erdogan, who has undermined the central bank’s independence in recent years ,  said Turkey needed to wean itself off “hot money” from foreign investment that could be quickly withdrawn and focus on home-grown industry. “Our country has now come to the point of breaking this vicious cycle, and there is no turning back …

[Read more...] about Turkey acts to support plunging lira for first time in seven years

The queue of well-wishers wanting to shake the hand of terror attack hero Dave Perry suggests the taxi driver will never have to buy a drink again. Luckily, he escaped with minor injuries when a suspected suicide bomber blew up his cab on Remembrance Sunday. But if he had not reportedly locked the passenger inside his vehicle at Liverpool Women’s Hospital we shudder to think about wider casualties. Experts upgrading the UK terror threat from substantial to severe means another attack is feared highly likely after the murder of MP Sir David Amess and the weekend explosion. And it is why the security services and the public must remain vigilant. The indomitable spirit of Liverpudlians represents the defiance of a nation but the danger posed by extremists is unlikely to be totally vanquished any time soon. We can defeat the hate-filled by pulling together and refusing to be divided by those wishing to inflict harm and conflict. Tories off rails Boris …

[Read more...] about ‘Unite and beat terror as Liverpool’s indomitable spirit represents UK’s defiance’

By Kevin Peachey Published 27 October comments Comments Share close Share page Copy link About sharing Related Topics Budget 2021 This is not the first, but the second Budget delivered by Chancellor Rishi Sunak this year. It is certainly not the first time we have heard some of the content. Despite a swathe of announcements having been released in advance, the measures as a whole will have a significant impact on your finances. This is how the money in your pocket will be affected. 1. Universal credit boost If you are working and also receiving universal credit, then you are probably affected by what is officially known as the taper rate. That means the universal credit payment you receive is reduced as you earn more. For every pound earned (sometimes above a base level of earnings known as the work allowance), 63p is automatically deducted from your …

[Read more...] about Budget 2021: Eight ways Rishi Sunak’s plans affect you

A U.K. parliamentary committee on Wednesday criticized government plans to deter migrants from trying to reach Britain in small boats, saying the measures will endanger lives without stopping dangerous journeys like the one that killed 27 people last week. British Prime Minister Boris Johnson has proposed legislation that would give authorities patrolling the English Channel the power to turn away boats carrying migrants. The Nationality and Borders Bill would also make it more difficult for people who enter the country illegally to claim asylum and allow asylum-seekers to be screened abroad. But the Joint Committee on Human Rights a cross-party panel that includes members from both houses of Parliament, said Wednesday that “a policy of pushbacks” would probably conflict with international human rights law and maritime law. “Pushbacks are known to endanger lives at sea,” the committee said in a report. “This is even more so when dealing with people on small, …

[Read more...] about UK panel asks govt to scrap plan to turn back migrant boats

Motorists who bought a new car between 2005 and 2015 will find out whether they should be able to automatically receive a payout from five of the world’s biggest shipping companies in a £150 million legal case. A three-day hearing at the Competition Appeal Tribunal in London begins on Monday, to decide whether a collective proceedings order (CPO) can be launched on behalf of UK consumers and businesses, which would see payouts on about 17 million vehicles. Mark McLaren, formerly of consumer group Which? will argue that the class action suit should proceed, which means anyone who bought an affected car will be automatically entitled to compensation. The companies are accused of setting up cartels to inflate charges for shipping during nine years. Recommended Marston’s positive about Christmas despite pub chain posting deeper losses Ofgem chief Brearley: Energy suppliers need to be more resilient National Grid and Scottish Power to …

[Read more...] about Tribunal to decide on motorist class action lawsuit against shipping cartel

Christmas shopping is set to be more expensive after November saw overall prices increasing for the first time in two and a half years, figures show. Overall shop prices rose year-on-year by 0.3% in November, spiking from October’s decrease of 0.4%, according to the BRC-NielsenIQ Shop Price Index. It is the first time that prices have risen since May 2019. The increase was driven by rising food prices and the slowing of non-food deflation, with the impact of labour shortages, rising commodity prices and transportation costs taking their toll. Recommended FTSE falls back below 7,000 mark as global virus fears rumble on Marston’s positive about Christmas despite pub chain posting deeper losses Ofgem chief Brearley: Energy suppliers need to be more resilient Food was also affected by a rise in global food costs where certain staples, such as vegetable oil, have doubled in price in the past two years. Fresh food inflation …

[Read more...] about Price rises hit Christmas shopping