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Tuesday, 20 August 20:26 (GMT -05:00)



Business And Politics News

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.
 
Market leader experts report that any changes in interest rate cuts mean changes in the national economy. To be more specific, depending on the direction and the degree of the change, you can tell how good or bad the things are in the national economy at a given point. Back to the Federal Reserve, this time the regulator has cut the interest rate by as much as 0,5% at a time, while usually, this is a 0,25% change if any.
 
The thing is that the USA has been involved in a series of trade wars with other major economies. In particular, the United States has been exchanging duties and other pleasant surprises with China and the European Union. This makes the Fed worry about a possible economic slowdown in the USA and the entire world.
 
Previously, the Fed used to stick to the policy of gradually increasing the interest rates even though President Trump was against this policy and criticized the Fed severely for that. Back in late 2018, the interest rate was increased from 2,25% up to 2,5%, which was the 4th interest rate hike in 2018.
 
For those of you who don't know, higher interest rates lead to more expensive loans while interest rate cuts make those loans cheaper. The current interest rate decision made by the regulator may well enliven the lending market, which is something the Fed is really hoping for. American businesses have now gained access to cheaper loans, which is expected to lead to a production boost and expansion., which in their turn lead to more taxes and new jobs.
 
At the same time, Washington claims that the overall economic situation in the country is good. The U.S. GDP gained 3,7% in Q1 2019, with 2% inflation and record-low unemployment (lowest in 50 years). With that being said, the latest interest rate cut is a preventive step.
 
The U.S. economy is still the world's biggest economy, with the U.S. Dollar still playing the key role in the global economy, trade, and finances.

 

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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

Roma May Drag Moscow and Brussels Into Major Financial Crisis

International experts are trying to evaluate the situation in Italy. Some of them are convinced that the EU is not going to save the Italian populists. For those of you who don't know the details, in October, the European Commission rejected the draft budget devised by the new Italian government. This means that the draft budget needs to be improved in order to approved.
Publication date: 19 December 11:48 AM