Retail inflation slows to 6.83% as vegetable prices decline

Retail inflation moderated to 6.83% in August from a 15-month high of 7.44% in July due to easing vegetable prices, offering a measure of relief to the Indian central bank and bond investors. Consumer Price Index (CPI)-based inflation, however, continued to exceed the Reserve Bank of India’s (RBI’s) target range of 2-6%. A Mint poll … Read more

Fed is done raising interest rates, economists say

The chief economists at the American Bankers Association are of the opinion that the US Federal Reserve is done with raising interest rates and will likely to cut them by roughly one percentage point next year, reported the Bloomberg. The latest forecast from the Economic Advisory Committee of the American Bankers Association shows that the … Read more

Rising Risk: US Banks Face Deposit Flight Threat With Shrinking Profits

Moody’s, the credit ratings agency, recently issued a new cautionary message concerning the U.S. banking system. What Happened: Moody’s shared in a note its decision to lower the ratings of 10 regional banks and that it is contemplating whether to downgrade several major lenders, including Bank of New York Mellon Corp (NYSE:BK), U.S. Bancorp (NYSE:USB), State Street Corp (NYSE:STT), Truist Financial Corp (NYSE:TFC), Cullen/Frost Bankers, Inc (NYSE:CFR) and Northern Trust Corp (NASDAQ:NTRS). … Read more

Is AI a Bubble? BofA Thinks so, and Details What Could Burst It

AI is in a “baby bubble” for now, Bank of America said Friday. What could burst the bubble is the Fed pausing rate hikes and then restarting the cycle. BofA said the dot-com blow-up in the early 2000s had roots in the Fed restarting policy tightening in 1999. Artificial intelligence is this year’s investment craze … Read more

$5.3 Trillion in Cash Could Fuel Bull Rally

Investors can’t stop piling up cash, with assets in money market funds ballooning to a record $5.3 trillion. The surge in cash comes amid a combo of high interest rates and depressed investor sentiment towards the stock market. But that massive pile of cash could be the fuel needed to drive the next bull market … Read more

The Fed Will Cut Rates in the Fall As Credit Faces ‘Tight Vise’

The Fed will finally cut interest rates in the fall, former PIMCO economist Paul McCulley predicted. That’s because banking turmoil will put credit in a “tight vise,” slowing the economy, he warned. Economists have flagged the risk of recession over the past year as the Fed aggressively hiked rates. Despite what Jerome Powell and the … Read more

Equities, other risk assets face hit as $800 bn stimulus to fade, says Citi

Equities and other risk assets will take a hit when central banks withdraw as much as $800 billion of stimulus deployed to prop up the global economy, according to Citigroup Inc. The risk rally has been fueled by the injection of over $1 trillion of central bank liquidity, and high-frequency liquidity indicators suggest this is … Read more

Indian companies to see higher interest burden in FY24 against FY22: Report

India Ratings & Research (Ind-Ra) said Tuesday, benefits to companies owing to lower interest rates and a reduction in debt are likely to be reversed in the current fiscal year. According to the report, the move will take place because of a sharp rise in interest rates and higher working capital financing needs. Ind-Ra expects … Read more