Category: News Desk

Federal Reserve Planning to Raise Interest Rates


The Federal Reserve made it clear that interest rates are likely to rise in June.  After raising rates in December, the market has seen much confusion about the timing of the next interest rate hike.

While GDP growth was soft in the first quarter of this year, recent Fed estimates show strong growth of over 2% for the second quarter, while strong retail sales growth and higher inflation indicate renewed strength in aggregate demand throughout the U.S. economy.

IMF Warns That Iran Cannot Rely on Oil Alone to Resuscitate Its Economy


The International Monetary Fund (IMF) warned Iran that its oil industry couldn’t remain the key pillar of its economy if it wishes to return to prosperity. It also warned the nation that it has far greater challenges ahead, despite the lifting of international financial sanctions.

First Deputy Managing Director of the IMF David Lipton said on Tuesday “I speak here today at a pivotal moment for Iran’s economy…With important sanctions lifted; your country has a new opportunity to deepen its integration into the global economy.

Cameroon Continues Corruption Fight: Opponents Suspect Ulterior Motive


Cameroonian authorities have arrested 14 officials tied to corruption, but political opponents argue that the probe is used to silence dissent, according to Voice of America. Officials charged them with embezzling $9 million, but some question the allegations. President Paul Biya changed the constitution allowing him to run for future terms and now may run as president for life.

Housing Starts, e-Commerce Rise Boosts Inflation


More houses are being built in America, and Americans are buying more products online, which is helping inflation rise.  New housing starts jumped 6.6% from the prior month to 1.17 million in April, according to a new report by the Census Bureau. Single-family building permits saw a 1.5% rise from March, and are continuing to drive the increase in housing in America.

World Bank Report: Cities are ‘Woefully Unprepared’ for Increasing Disaster Risks


The climate is changing at an ever increasing pace, creating extreme weather and other hazards. These threats pose serious threats to cities around the world. However, the World Bank notes that these same cities are failing to plan for these possible scenarios.

According to a study by the Global Facility for Disaster Reduction and Recovery (GFDRR), by the year 2050 1.3 billion people and $158 trillion in property will exist in areas that could be threatened by rising rivers, sea levels, and extreme weather.

The Olympics will not Add Significant Value to Brazil’s Economy


According to a report from Moody’s Investor Service, the Summer Olympics will yield some short-term economic benefits to Brazil, but little overall value in the long-term, as CNN Money reports.

The South American nation suffers through an ailing economy, while contending with a Zika threat that could spread as visitors from around the world congregate. Brazil spent over $7 billion in infrastructure projects in preparation of the Olympics.

Fed Eyes June Rate Hike


Mixed economic data persists, but that isn’t stopping the Federal Reserve from raising interest rates.  In an attempt to make borrowing more expensive for consumers, the Federal Reserve may increase its Federal rate target in June.

While markets have been pricing a very low probability of a June rate hike, the Federal Reserve has gone on the offensive, with officials giving several interviews with the press hinting that June will see a rate hike.

Latvia to Become OECD’s 35th Member State


Last week, the leadership of the Organization for Economic Cooperation and Development (OECD) decided unanimously to invite the European nation of Latvia to join as its 35th member. The Baltic nation had met all of the OECD’s membership requirements, and the decision to invite it to join the OECD was made by unanimous vote of the OECD’s governing council.

Venezuelan President Threatens Factory Owners


In a speech to supporters, Venezuelan President Nicolas Maduro threatened to seize control of non-productive factories and imprison owners if they stop production, according to Associated Press.

His threat comes on the heels of an emergency decree granting him more authority, and he blames the “bourgeoisie” for worsening the South American nation’s widespread food and product shortages. Venezuela’s economy is on the brink of ruin, with opposition leaders gathering signatures to launch a recall referendum.

Retail Sales Rebound Hints at Improving U.S. Economy


Retail sales in America posted a surprising jump, as consumers are feeling more comfortable about opening their wallets.  Retail sales rose 1.4% on a month-over-month basis in April after falling 0.3% in March on a seasonally adjusted basis. Sales also rose 2.7% on a year-over-year basis, with non-store retailers seeing a 10.2% gain on a year-over-year basis.

That jump helped to boost overall retail sales from February to April, which saw a 2.8% year-over-year gain.