Banks borrow a record $153B from Fed in scramble for liquidity

Bank borrowing from the US Federal Reserve spiked to a record $153 billion this week, shattering the peak seen during the 2008 financial crisis as banks scramble for liquidity. It was the largest amount of borrowing on record from the Fed’s discount window, which offers banks 90-day loans at the central bank’s policy rate, currently … Read more

Federal Reserve announces that ALL depositors at Silicon Valley Bank will be protected

The Federal Reserve on Sunday night announced that all those with money in collapsed Silicon Valley Bank will get their money back, as a second bank was revealed to have closed. On Sunday morning Janet Yellen, the Treasury Secretary, said there would be no government bail-out, and the Federal Reserve statement said no taxpayer money would … Read more

Biden hopes inflation is back to normal by the ‘end of next year’

President Joe Biden said Tuesday that he hoped inflation would be under control by the end of next year, but told reporters he couldn’t make any guarantees.   In answer to a question about when he expected prices to get back to normal, he replied: ‘I hope by the end of next year we’ll be much … Read more

Consumer expectations for inflation are rising in troubling sign for the Fed

Americans expect costs to RISE even more next year in sign that consumers are losing confidence that the Fed can tame soaring inflation, new survey shows UMich poll showed inflation expectations increased for first time since March Consumers expect inflation at 5.1% a year from now, up from 4.7% a month ago It’s a sign … Read more

US inflation: Older Americans fear rising prices more than young people

Older Americans and those living in the South and the Midwest are more likely to be worried about rising inflation than their younger counterparts in the Northeast and West, according to new survey data from the Federal Reserve of New York. The survey data released on Monday showed another increase in short-term inflation expectations in November, … Read more

Soaring wealth during pandemic highlights rising inequality

The wealth of American households rebounded last quarter to a record high as the stock market quickly recovered from a pandemic-induced plunge in March and a gusher of federal payments swelled individual portfolios and savings accounts.  The gains, however, have flowed mainly to the most affluent households even as tens of millions of people endured … Read more

Gold hits its highest price ever at £1,515 an ounce amid fears of coronavirus and US-China tensions

The price of gold hit a record high Monday as investors rushed into the safe-haven amid concerns about China-US tensions, a spike in virus infections around the world and a lack of progress on a new stimulus bill in Washington. After months of healthy rallies across equity markets – fuelled by trillions of dollars in … Read more

Coronavirus UK: FTSE 100 falls on opening after downbeat assessment from US Fed

London stock markets opened down this morning as hopes faded for a quick economic rebound following the coronavirus pandemic. The FTSE 100 index of Britain’s biggest companies fell by 89 points or 1.51 per cent to 5,815 in the first ten minutes of trading this morning. Fears are growing about a second wave of infections, … Read more