Tag: Inflation

Central banks face threats to their independence − and that isn’t good news for sound economic stewardship (or battling inflation)

Nearly every country in the world has a central bank – a public institution that manages a country’s currency and its monetary policy. And these banks have an extraordinary amount of power. By controlling the flow of money and credit in a country, they can affect economic growth, inflation, employment and financial stability – all […]

Policymakers now expect only one rate cut in 2024

It was a double-whammy Wednesday for economic-data enthusiasts. During the morning of June 12, 2024, the Bureau of Labor Statistics published its latest inflation figures. The news was relatively good, showing that inflation rose 3.3% in the year to May 2024 – less than some analysts had expected. A few hours later, the Federal Reserve […]

Latest inflation figures are good news – even if they give a lot of people heartburn

The U.S. economy is slowing, but not crashing. In the dismal science, this is what counts as good news. That’s the message I took away from the latest inflation data, released May 15, 2024, which showed U.S. consumer prices rising 3.4% in the 12 months to April 2024. This is down slightly from the 3.5% […]

why a gradual approach would have been better

Nigeria removed fuel subsidies entirely in May 2023. This came as a surprise because of the political risks associated with subsidy removal. Previous administrations were reluctant to jettison the subsidies. The subsidies had been in place since the 1970s, when the government sold petrol to Nigerians at a price below cost – though most consumers […]

Young people are lukewarm about Biden – and giving them more information doesn’t move the needle much

Recent polling for the November 2024 election shows that President Joe Biden is struggling with young voters, who have traditionally supported Democrats. A December 2023 poll showed that 49% of young people supported former President Donald Trump, while just 43% of 18- to 29-year-olds said they preferred Biden. Biden is even struggling with young people […]

With the economy looking bright enough, the Federal Reserve seems content to play the waiting game

If there’s one thing you can say about Fed policymakers, it’s that they don’t make decisions on a whim. When the Federal Open Market Committee met on Jan. 31, 2024, it held interest rates steady – as most observers expected. That marks six months since the Fed last changed the base rate. And people should […]

What’s at stake this Election Day – 7 essential reads

As Election Day closes in, uncertainty and concern about potential chaos – from violence at polling sites to candidates refusing to accept defeat – continue to rise. Problems that have historically plagued the U.S. electoral and political system – like voter intimidation – are cropping up ahead of the midterms. But so, too, are less […]

Fed faces twin threats of recession and financial crisis as its inflation fight raises risks of both

There is wide agreement among economists and market observers that the Federal Reserve’s aggressive interest rate hikes will cause economic growth to grind to a halt, leading to a recession. Less talked about is the risk of a financial crisis as the U.S. central bank simultaneously tries to shrink its massive balance sheet. As expected, […]

UK prime minister forced from office amid economic turmoil, chaos in parliament and a party in disarray

The U.K. government is in tatters after Prime Minister Liz Truss resigned on Oct. 20, 2022 – the second leader to be forced out in mere months. It follows an economic mess largely of her own making that resulted in U-turns, a high-profile firing, curious absences and plummeting support. The resignation means that Truss will […]

five essential reads on why there isn’t an inspiring story to tell

As Nigeria marks its 62nd independence anniversary, many will be checking to see if there is indeed any reason for celebrations. Reasons for pessimism are not hard to find. Major statistics for the economy, security and human development paint a picture of a country in despair. Time was when the naira, Nigeria’s currency, was stronger […]

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