Analysis: Looming U.S. default risk prompts investors to cut some debt exposure
NEW YORK, Feb 21 (Reuters) – Bond investors are starting to trim holdings of U.S. debt to brace for a possible government default that they see as highly unlikely but potentially seismic for financial markets around the world.The U.S. Treasury hit its $31.4 trillion borrowing limit last month. Unless congress raises or suspends that cap, […]
Global shares sink, dollar soars on rate-hike outlook
LONDON, Feb 17 (Reuters) – Stock markets dropped across the globe on Friday and the dollar leapt to six-week highs as jobs data revived expectations the U.S. central bank would stick to its monetary tightening path.Data from the U.S. Labor Department overnight showed monthly producer prices had accelerated in January and the number of Americans […]
Argentine savers ‘drown’ under spiraling prices as inflation hits 99%
BUENOS AIRES, Feb 14 (Reuters) – Argentina’s inflation rate has hit just shy of 100%, the government said on Tuesday, with savers feeling more pain from some of the world’s fastest rising prices and workers’ budgets straining as costs outstrip salaries.The South American country, which has battled spiraling prices for years, saw monthly inflation speed […]
At least two more Fed rate hikes and no cut this year, say economists: Reuters poll
BENGALURU, Feb 14 (Reuters) – The U.S. Federal Reserve will raise interest rates at least twice more in coming months, with the risk they go higher still, according to a majority of economists in a Reuters poll who see no cut by year-end.This brings the majority of private-sector forecasters in line with the central bank’s […]
United States tells citizens: Leave Russia immediately
MOSCOW, Feb 13 (Reuters) – The United States has told its citizens to leave Russia immediately due to the war in Ukraine and the risk of arbitrary arrest or harassment by Russian law enforcement agencies.”U.S. citizens residing or travelling in Russia should depart immediately,” the U.S. embassy in Moscow said. “Exercise increased caution due to […]
U.S. posts $39 billion January deficit after pension fund bailout
WASHINGTON, Feb 10 (Reuters) – The U.S. government posted a $39 billion budget deficit for January after a $119 billion monthly surplus a year earlier, as revenues dipped and one-time costs, including the bailout of a union pension fund, pushed outlays sharply higher, the Treasury Department said on Friday.The report, which comes as Treasury employs […]
Debt talks can include everything but cuts to Social Security and Medicare, Republicans say
WASHINGTON, Feb 12 (Reuters) – Republicans say they would not cut Social Security and Medicare programs but “everything else is on the table” in talks over raising U.S. government borrowing limits, House Oversight Committee Chair James Comer said on Sunday.”We need to shore those programs up. They’re running out of money. But at the end […]
In State of the Union speech, Biden challenges Republicans on debt and economy
WASHINGTON, Feb 7 (Reuters) – President Joe Biden challenged Republicans to lift the U.S. debt ceiling and support tax policies that were friendlier to middle class Americans on Tuesday in a State of the Union speech that served as a blueprint for his 2024 re-election campaign.Assailing oil companies for making high profits and corporate America […]
Morning Bid: Powell confesses ‘This time it’s different’
A look at the day ahead in U.S. and global markets from Mike Dolan.Jerome Powell calmed the horses, a bit.In attempting to parse last week’s blockbuster January jobs report, the Federal Reserve Chair on Tuesday reprised his take from last Wednesday’s policy meeting – essentially that another couple of Fed rate hikes were probably needed […]
China says it will set up yuan clearing arrangements in Brazil
BEIJING, Feb 7 (Reuters) – China’s central bank has signed a memorandum of understanding on setting up yuan clearing arrangements in Brazil, it said on Tuesday, in a move to help boost the currency’s global clout.The establishment of such arrangements for the renminbi (RMB), or the yuan, would be beneficial to cross-border transactions, and further […]