All Posts Tagged With: "Jean-Claude Trichet"
Did Bernanke and Trichet Cosy-Up to Avoid Dollar Disaster?
Are we seeing a change in fortunes for the much maligned greenback? It would certainly seem so. The US currency has climbed to a one week high against the euro and the yen. And the G8 leaders are expected to signal support for the dollar at their meeting today.
How did this happen? The dollar was heading for a drubbing against the euro last week. Currency expert Chuck Butler believes that Fed chief Ben Bernanke sent ECB chief Jean-Claude Trichet a memo pleading with him to help the dollar out by not signaling further rate hikes in Europe.
Is the Fed to Blame for Chinese Inflation?
Last year, China was viewed as the driver behind rising commodities prices.
Now the blame for spiraling food and oil prices is increasingly being laid at the door of Fed Chairman Ben Bernanke for cutting the fed funds rate to 2% and unleashing yet another wave of inflationary surplus liquidity.
The fallout is now being seen as India, China, the Philippines and Indonesia hike their own interest rates to rein in rising prices.
Consumer prices jumped 7.7% last month, down from 8.5% in April, but inflation there remains top of the list of economic concerns.
Bank of Japan Plays Down Inflation Concerns
Despite having the lowest overnight rate of the Group of Seven nations, Japan’s central bank unanimously voted today (Friday) to keep its key interest rate steady at 0.5%.
Why Europe’s Got It Right on Inflation
Interest rates are set to rise next month!
Interest Rates Will Go Up, Not Down
I was delayed on my way in this morning. By the Luftwaffe. Yes, an unexploded bomb in east London played havoc with the District Line.
But Dollar, Meanwhile, Hits the Skids - Hawkish ECB Comments Cited
In the currency market, the dollar tanked against the euro. Late Thursday, the euro was trading at $1.5568 vs. $1.5435 on Wednesday.
ECB Stands Firm Against Inflation
After voting to hold rates steady at its monthly meeting today (Thursday), European Central Bank (ECB) President Jean-Claude Trichet said a rate hike in July is “possible.”
Inflationary Tortillas
Consumers are suffering because the stupid European governments boosted spending for a decade or more, the money financed by debt, and it is all of this spending that has made the purchasing power of the euro to fall. How do we fix this? The Mogambo has an answer.
Buffett: US Recession ‘Will Not Be Short and Shallow’
President Bush insists the US economy is in a “downturn,” but legendary investor Warren Buffett warned today that the US is in a recession — one that will be more severe than most people expect.
“This will not be short and shallow,” said Buffett on CNBC. “I think consumers are feeling gas and food prices and not feeling they’ve got a lot of money for other things.”
Speaking about the ongoing US credit crisis, Buffett said: “I think there will be rippling secondary, tertiary effects …
BOE Cuts Rate, ECB Holds Steady
The Bank of England (BOE) cut its interest rate 25 basis points to 5.0% yesterday (Thursday) while the European Central Bank (ECB) held its rate steady at 4.0%.
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