Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 19 January 07:43 (GMT -05:00)

Business And Politics News

Emerging Markets Ask Fed For Interest Rate Hikes

It is reported that the Fed’s FOMC members are still at odds over the idea of increasing the interest rates as promised. We remind you that the FOMC meeting is going to take place just in a few days (less than a week).




At the same time, the central banks of many countries with emerging economies ask the Fed to make up their mind and eventually start raising the interest rates since the uncertainty over the rates does them a lot of harm.
The expert for The Wall Street Journal assume that the Fed is finally ready to start a series of interest rate hikes for the first time over the last 9 years. At least they say that the Fed’s latest statements and announcements give us to understand and expect just that. One again, the Fed’s forthcoming FOMC meeting is going to take place in mid September.
The supporters of the idea to raise the key interest rate from the current 0,25% (which has been at this level for 7 years) say that such a step is going to result in some positive improvements in the U.S. labor market. According to several reports, in mid summer the USA had around 6 million vacancies all across the country, which means that there is a lack of skilled workers in some industries. This is expected to trigger salary growth, which in its turn is going to back higher inflation. By the way, the current rate of inflation (which is at its lows) is a point of great concern for local economists.
At the same time, experts say that a stronger dollar and ultra low oil prices are currently hindering inflation growth in the USA while an economic slowdown in China coupled with the recent Chinese stock market crash is provoking instability in the U.S. stock markets and other stock markets around the globe. All of that is important to take into account. Still, the experts say that most of the signals coming from the USA are reassuring and supporting the chances of an interest rate hike.

However, there are some factors chilling the expectations. In particular, some FOMC members assume that the idea of raising the rates should be delayed for a couple of months. At the same time, some experts believe that such a step may trigger market panic and shocks around the globe given the current economic process seen worldwide. A new economic crisis may break out, thereby forcing a flight of capital from emerging markets. As the result, emerging currencies will start devaluing against the U.S. Dollar. If this is the case, the U.S. Dollar whill get much stronger, thereby affecting the American exports and the entire economy, which not what the Fed wants.


You are free to discuss this article here:   forum for traders and investors


Add to blog
Got a question? – Ask it here »

Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM