Pakistan receives Chinese loan to stabilize its falling reserves

Pakistan has received a $2.3 billion Chinese consortium loan that will help stabilize its fast-depleting foreign reserves, Finance Minister Miftah Ismail said Friday. The South Asian nation is still seeking International Monetary Fund (IMF) assistance to ease a dire financial crisis. Foreign exchange reserves held by the central bank have fallen to as little as … Read more

US recession fears darken outlook for global growth

Manufacturing growth is slowing worldwide as China’s COVID-19 curbs and Russia’s invasion of Ukraine disrupt supply chains and keep inflation at the highest in years, while the growing risk of a US recession poses a new threat to the global economy. Gauges of factory activity released Thursday in Japan, Britain, the eurozone and the United … Read more

‘Certainly a possibility’ rate hikes could trigger US recession: Fed’s Powell

Rapid interest rate increases are meant to cool demand and bring inflation down, but Federal Reserve Chair Jerome Powell on Wednesday acknowledged the risk that the hikes could trigger a US recession. “It’s not our intended outcome at all, but it’s certainly a possibility,” Powell said in testimony before the Senate Banking Committee. Powell also … Read more

Sounds of recession rise with Fed’s aggressive rate hikes

US Federal Reserve Chair Jerome Powell has pledged to do whatever it takes to curb inflation, now raging at a four-decade high and defying the Fed’s efforts so far to tame it. Increasingly, it seems, doing so might require the one painful thing the Fed has sought to avoid: A recession. A worse-than-expected inflation report … Read more

Red-hot inflation pushing Fed toward biggest rate hike in 28 years

For months, Chair Jerome Powell has held out hope that the US Federal Reserve (Fed) will be able to raise interest rates high enough to throttle rampant inflation without tipping the economy into recession. Yet, with the Fed set to announce another sharp interest rate hike after it meets this week, days after the government … Read more

US inflation roars to 8.6% in May, a new 40-year high

The costs of gas, food and other necessities jumped in May, pushing inflation to a new four-decade high and giving American households no respite from rising costs. Consumer prices surged 8.6% last month from 12 months earlier, faster than April’s year-over-year surge of 8.3%, the Labor Department said Friday. On a month-to-month basis, prices jumped … Read more

Pandemic headache: US businesses still struggling with inventories

More than two years into the coronavirus pandemic, American businesses are still struggling to manage their inventories in a feast-or-famine cycle caused by fickle consumer demand. “We have way too much inventory right now,” said Ginny Pasqualone, chief executive of Sparkledots, a children’s clothing manufacturer. “It’s important that we have a large selection of merchandise … Read more

Biden backs Fed as Yellen admits she was ‘wrong’ about inflation path

In a significant shift from the previous administration, US President Joe Biden on Tuesday assured Federal Reserve (Fed) Chair Jerome Powell would have freedom from political interference, as he met the central bank chief to plot a strategy to fight historic inflation that is draining American wallets. The first meeting between the two since Powell’s … Read more

India’s quarterly growth slows to 4% amid pandemic

India’s economy, Asia’s third-largest, slowed to 4.1% in the January-March quarter as it battled the implications of the COVID-19 pandemic, figures showed Tuesday. It was the slowest pace in the financial year that ended in March, following 5.4% growth in the previous quarter. Overall, India’s economy grew by 8.7% in the 2021-22 financial year, slower … Read more

German inflation hits 7.9%, highest level since early 1970s

Germany’s annual inflation rate accelerated to 7.9% in May, its highest level in nearly half a century, according to an official estimate Monday. The Federal Statistical Office said year-over-year inflation jumped from 7.4% in April, with energy prices 38.3% higher than in May last year and food prices up 11.1%. Germany has Europe’s biggest economy. … Read more