Overseas Headlines – June 16, 2022

United States:

US Faces a Fed-Triggered Recession That May Cost Biden a Second Term

“Soaring prices are hurting Americans. The cure is going to hurt, too. It may take a recession to stamp out inflation — and it’s likely to happen on President Joe Biden’s watch. A downturn by the start of 2024, barely even on the radar just a few months ago, is now close to a three-in-four probability, according to the latest estimates by Bloomberg Economics.”



BOE Set for Steady Rate Hikes Amid Global Chaos: Decision Guide

“The Bank of England is set to deliver a fifth-straight rate hike on Thursday, with officials expected to stick to a steady path a day after central banks on both side of the Atlantic unleashed policy fireworks. Investors and economists are betting the UK central bank’s nine policy makers will increase the key rate a quarter point to a 13-year high of 1.25% on Thursday. Analysts expect three members to push for a 50 basis-point rise.”



Hong Kong Hikes Interest Rate After Fed as HSBC Stays Put

“Hong Kong raised its benchmark interest rate in line with the Federal Reserve’s hawkish move, although the city’s main banks refrained from following suit, giving consumers and businesses some breathing room. The Hong Kong Monetary Authority increased its base rate by 75 basis points to 2% on Thursday, hours after the Fed’s hike. Monetary policy in the financial hub moves in lockstep with the U.S. given the Hong Kong dollar’s peg with the dollar.”



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