Bloomberg

What actions should the Bank of Japan take to support the yen, and how could this affect the economy?

Strategists expect the yen and government bonds to remain under pressure while Japan’s stocks continue to find support following the Bank of Japan’s decision to raise rates on Tuesday

What should the impact of the Federal Reserve's decisions on interest rates be for everyday people and businesses?

The U.S. central bank is widely expected to hold interest rates steady at Kevin M. Warsh’s first meeting as chairman

What should the Federal Reserve consider when deciding to change interest rates?

How has Brexit affected the way European countries work together in their financial markets?

European Investment Bank President Nadia Calviño discusses the lender’s investment in security defense, tech and energy projects in an interview with Bloomberg TV’s Guy Johnson. She said the UK’s exit from the European Union is partly responsible for the EU’s failure to integrate its capital markets. “We shouldn’t underestimate the importance of Brexit,” Calviño said on Wednesday. “London was Europe’s financial market, and after Brexit we have divided our forces.” (Source: Bloomberg)

How might central banks' increased gold buying affect our economy and global trade?

What should the government's role be in managing the oil reserve and its impact on prices for everyday people?

Emergency stockpiles of crude oil in the United States have hit the lowest level they have been since the 1980s, as the oil and gas markets grapple with the fallout from the war in Iran. The monthslong conflict disrupted more than 11 million barrels per day of oil from global trade, threatening supply worldwide and […]

How might changes in the labor market and oil prices affect our economy and daily lives?

The 1970s oil-shock playbook needs an update: The inflation costs remain, but the employment risks appear far smaller than they did 50 years ago. Why it matters: As the Iran war continues, there are early signs of renewed strength in the labor market. If energy disruptions pose less of a risk to jobs, the challenge for central banks shifts from managing stagflation risks to guarding against renewed price pressures. That's the takeaway from new Federal Reserve Bank of Boston research that finds an oil shock the size of what the Iran war has produced would push inflation materially higher while having essentially no effect on national employment. What they're saying: "The U.S. economy's vulnerability to oil shocks has not been eliminated, but rather reconfigured," economists wrote in the report. "Oil shocks may now pose less of a challenge for monetary policy, allowing policymakers to focus more on the greater risk to inflation." Driving the news: The researchers estimate that the U.S.-Iran conflict generated a 33% oil price shock — a magnitude that is historically significant, though not unprecedented. The U.S. economy is now structured differently than past energy crises, allowing it to absorb a shock of that magnitude with far less damage to national employment.But with a smaller hit to growth and employment, there is less downward pressure on prices to counteract rising energy costs.The Boston Fed estimates that if an oil disruption like today's hit during the mid-1970s, it would lift the Personal Consumption Expenditures Price Index by 2.2 percentage points and reduce national employment by 1.8 percentage point. What to watch: The oil shock is estimated to create relative winners and losers across the country, with oil-producing states faring better than oil-importing regions — differences that can leave an economic mark for as long as two years after the initial hit. The Boston Fed estimates that employment growth in Texas would be roughly 1.7 percentage point h

How might raising interest rates by the ECB affect everyday people and businesses in our community?

The European Central Bank is set to raise interest rates for the first time since 2023, judging it can no longer ignore the upswing in inflation caused by the Iran war. Bloomberg's Oliver Crook is in Frankfurt with a preview of today's decision. (Source: Bloomberg)