Category: News Desk

Blame it on the Brits? Fed Points at Brexit


Citing the economic risk of Britain leaving the European Union, Federal Reserve chief Janet Yellen kept interest rates low in an effort to help America’s deteriorating economy.

While several negative economic indicators at home have moved analysts to predict a rate hike would not happen in June, the Fed chair cited the risks of a Brexit for both Americans and people around the world. When asked if the possibility of a Brexit influenced the Fed’s decision to delay its plan on increasing Americans’ borrowing costs, Yellen said it was a factor.

New Myanmar Government Welcomes World Community


Newly elected ruling party National League for Democracy (NLD) will welcome French Foreign Affairs and International Development Minister Jean-Marc Ayrault in the latest effort to open up Myanmar to the world, according to The Diplomat.

Ayrault intends to strengthen diplomatic ties with Myanmar and ensure that French development efforts enhance the economy. Myanmar has been plagued by decades of civil war and has slowly transitioned from military rule to a civilian-led government.

Indian Infrastructure Public and Private Investment at a Ten-Year Low


According to a report by the World Bank, in 2015 India hit a decade low level of investment in public infrastructure from sources both public and private, foreign and domestic. The reduction appears akin to similar contractions in investments seen in other distressed emerging economies, like China and Brazil.

Are Central Banks Losing Control or Credibility?


More fund managers are preparing for a steep decline in stocks as the Federal Reserve announces whether it will raise interest rates.  The Federal Open Market Committee press release, due Wednesday afternoon, is a much-awaited announcement on whether this is the meeting where the Federal Reserve will change monetary policy.

After months of pricing in a low chance of a rate hike, markets reacted sharply last month after several Fed executives gave public speeches and interviews asserting the strength of the American economy and the need to rein in inflation.

Syria’s Central Economy Remains Broken: Survival Economy Emerges


BMI Research states that Syria’s economy will contract at an annual 3.9 percent from 2016 to 2019 as civil war rages on, according to Business Insider. Growth is expected to return in 2020, but only through humanitarian assistance and investment from Russia and Iran. Syria’s GDP has plummeted since 2011.

OECD Finally Issues Opinion on Brexit Issue


The Organization for Economic Cooperation and Development (OECD) issued a policy paper this week on the matter of Great Britain’s exit from the European Union (EU), often called “Brexit.” According to the OECD, exiting the EU would cause “a major negative shock to the UK economy.” Thus, the organization has strongly warned against Brexit.

More Warnings as Mainstream Urges Brexit Rejection


As Britain nears its vote to leave the EU, several new warnings have appeared urging voters to vote against an exit.  While several politicians, economists, and financial chiefs have attempted to deter voters from voting to split from the EU in recent months, new warnings in recent days have cast aspersions on the UK’s ability to go it alone economically.

The BBC reported a 0.2% decline against the U.S. dollar, a 0.6% decline against the euro, and a 1% decline against the Japanese yen in recent trading, while noting volatility has increased in recent days.

U.S. House Approves Package for Puerto Rico Debt Crisis


In a 297-127 vote, the U.S. House passed a bill that helps Puerto Rico manage its debt crisis, according to NPR. Puerto Rico is $70 billion in debt and is expected to miss a July 1 payment. Under federal law, Puerto Rico is prohibited from using bankruptcy to restructure its debt.

Is Ukraine’s Dependence on IMF Aid Actually Doing More Harm than Good?


Ukraine has undergone a recent wave of political, social, and economic instability well documented in the media. Rampant corruption, a flagging economy, and uncertainty over its future have left the nation in desperate straits.

To pay its obligations, it has relied heavily on loans from the International Monetary Fund (IMF); loans that it may not be able to repay. In addition, the nation may not be finished borrowing from the IMF.

Interest Rate Eyed as Federal Reserve Meeting Looms


Markets are becoming increasingly skeptical of the Federal Reserve as the world’s most important central bank heads into a meeting to decide on interest rates.

After several weeks of strong hints to the world that interest rates were going upwards, both economists and market participants are growing increasingly skeptical that the Fed will actually raise rates.