March 18, 2024
United States:
Fed Hikes Slash Household Net Interest Income in Break From Past
When the Federal Reserve raises interest rates, US households — in aggregate — usually get a boost to interest income that outweighs the extra cost of servicing debt. Not this time.
The annual interest bill that Americans pay on mortgages, credit cards and other debt has climbed by almost $420 billion since the Fed started tightening policy in March 2022, according to the latest numbers from the Bureau of Economic Analysis. The rise in interest income over the same period was only about $280 billion.
Europe:
Germany Is in Recession Due to First-Quarter Slump, Survey Shows
Germany is in recession and its economy will hardly grow this year, according to a Bloomberg survey.
Gross domestic product will contract 0.1% in the first quarter, the March 8-14 poll showed. A month ago, analysts were predicting stagnation in the first three months of the year.
Asia:
BOJ Rate Hike on Tuesday Is Now Widely Expected After Wages Jump
Bank of Japan Governor Kazuo Ueda and his board have one more day to decide if it’s time for the nation’s first interest rate hike in 17 years amid simmering speculation that it will proceed.
Some 90% of BOJ watchers sees the chance of authorities ending the negative rate on Tuesday at the meeting’s conclusion, with that likelihood bolstered after the nation’s largest union group announced first-round results to annual wage negotiations that far exceeded expectations.
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