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Saturday, 24 February 17:28 (GMT -05:00)



Business And Politics News

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict


According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

 

 

 

 

 

In particular, the experts assume that the American economy is nearing 2018 with fairly strong stats. This economic strengthening is expected to push earnings and inflation higher. Naturally, the Fed is likely going to respond with tougher money-and-credit policies, including interest rate hikes. The U.S. unemployment rate is expected to shrink down to 3,7% and 3,5% by the end of 2018 and 2019 respectively. If that’s the case, this will be the lowest unemployment rate in more than 50 years. By the way, the current unemployment rate is at 4,1%.
 
 
Still, some experts believe Goldman Sachs’ forecast is way too optimistic. They appeal to macroeconomic stats when reasoning their standpoint. In particular, they say that the figures only seem really strong while the real state of affairs is not that clear.
 
For example, let’s take a look at the U.S. labor market. American businesses created 261K new jobs in October, but 89K of them belong to waiters and bartenders. Hourly earnings almost stopped growing – only 2,4% in 12 months.
For those of you who don't know, the Fed went back to raising interest rates in December 2015. They have raised the rates 4 times since then. Yet, another interest rate hike is expected in December. In 2012, the Fed introduced several goals – stable employment and inflation at 2%. Formally, this matches Goldman Sachs’ forecast for 2018 (1,8%).
 
Also, don’t forget about the staffing changes in the Federal Reserve. This is the moment when the Fed will probably have to revise their strategies and policies.

 

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Any Brexit Scenario Will Damage the British Economy

In practice, there can be multiple Brexit scenarios, i.e. the scenarios of how the United Kingdom will exit the European Union. Experts say that almost any scenario will damage the British economy to some extent. Moreover, there will be some economic damage to both the UK, the USA, and the EU.

Publication date: 25 December 02:48 AM

The Era of Cheap Money from Central Banks is Over

According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.

Publication date: 25 December 02:05 AM

Will Bitcoin Mining Leave the World without Electricity?

It seems like people have been obsessed with cryptocurrencies. While loading up on them like crazy, they seem to have forgotten that everything has a price. When it comes to mining cryptocurrencies, this is all about the growing deficit of electricity. The thing is that all those mining farms consume tons of energy. Maintaining that cryptocurrency infrastructure is rather energy-consuming as well since all of that requires really powerful and capacious hardware, which consumes big amounts of electricity.

Publication date: 04 December 01:04 AM

Brexit and Bank Capital Outflow

Since the Brexit referendum that took place in the United Kingdom last year, European banks have already withdrawn from the UK as much as 350 billion euros. That’s reported to be the official stats provided by the European Union, The Financial Times reports.

Publication date: 30 November 01:52 PM

Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM

Bitcoin Market Cap Exceeds $150 Billion

Bitcoin’s market capitalization exceeded $150 billion the other day. At the same time, the international expert community keeps on pondering upon the near-term prospects of Bitcoin and other digital currencies.

Publication date: 03 September 11:22 PM