Category: News Desk

Fed Sees U.S. Facing “Severe Economic Headwinds”


The U.S. is resisting severe economic headwinds to global markets, according to a new release from the Federal Reserve.

In a public statement, the Fed said they see a “limited impact from global slowdown” on the United States economy, which is seeing steady improvement after its slow recovery from the 2008 global financial crisis. The Federal Reserve Open Market Committee acknowledged that “recent foreign economic developments” were one of many significant “downside risks” currently facing the United States.

The End of Quantitative Easing


The Federal Reserve (The Fed) has finally ended ‘quantitative easing’ (QE), a policy that forced trillions of US dollars into the financial system. The jury will be out for some time on whether or not the QE strategy worked, and what will ultimately be the consequences. For now, the Federal Reserve’s main policy committee has suggested that there has been a substantial improvement in the labor market, and that there is underlying strength in the economy on a broader scale.

Surprise Inflation in U.S. as Services Grow Pricey


Wholesale prices rose in October despite falling oil prices and lower energy costs.

The producer-price index (PPI) rose 0.2% in October after falling 0.1% in September, according to the Bureau of Labor Statistics.  Expectations for a 0.1% decline were far off due to a rise in trade services, which rose 0.8% in October after rising 0.2% in September.

Transporting and warehousing costs were flat, while other services prices rose 0.1%.  In total, services prices rose 1.6% year-over-year in October, mostly in line with the prior five months.

Surprise Japanese Recession Stuns Monetarists


Despite extreme money printing and aggressive growth targets, the Bank of Japan has failed to bring Japan into growth as the world’s third-largest economy falls into recession.

Data released on Monday showed that the nation’s GDP fell 0.4% in the third quarter of 2014, causing an annualized economic contraction of 1.6%. A combination of higher taxes and demographic pressures are being blamed for the slump.

What the new Republican congress REALLY Means for the Economy


The historical impact of Republicans taking over the senate this year has given the Republicans a powerful chance to reshape the landscape of the United States that has been in turmoil these last six years. This is mainly because of President Obama’s Affordable Care Act, which, if you look at the numbers, is anything but affordable. 

The Income Inequality Issue in the U.S.


Currently, the top one percent of all Americans holds about 40% of the complete wealth of the nation. Recent studies have indicated that the biggest income gap in history is having a huge impact on the economy of the United States. This is causing the disappearance of the middle class because of high taxes, regulations that devastate small businesses and regulations that deter risk taking.

European Growth Reaccelerates from the Brink


The European Union saw an acceleration of economic growth, according to new figures. Seasonally adjusted GDP rose by 0.2% in the Eurozone and by 0.3% in the European Union in the third quarter of 2014, according to Eurostat.

Iraqi Economy to Shrink for the First Time since the War


Recent evidence suggests that Iraq’s economy will see some shrinkage this year, to the tune of 2.7%. This is the first contraction that the country will have experienced since the invasion led by the United States in 2003. The impending economic downturn for the country has emerged after a gross domestic product growth rate of approximately 4.2% in 2013, the weakest rate in six years.

The Week in Review: U.S. Stocks, Unemployment Rise as Dollar Falls


U.S. stocks saw a small gain despite an unexpected rise in jobless claims that disrupted a steadily declining unemployment rate over the past few months. Meanwhile, recent strength in the U.S. dollar turned soft as the currency consolidated towards a more mixed view.

European Finance Ministers Planned to “Crush” Greek Economy in Quest for Revenge


European finance ministers conspired to “crush” the Greek economy and punish Greece for overspending, according to leaked documents from former U.S. Secretary of Treasury Timothy Geithner.

The Financial Times, a London-based newspaper, in which Mr. Geithner describes a meeting of the Group of Seven (G7) in February 2010, republished the leaked documents. According to the documents, finance ministers from European countries entered the meeting and planned to punish Greece for overspending before the financial crisis of 2008.