Article Abstract:
There are three reasons why there is increased pressure for US interest rates to rise, a boom in consumer spending, a likelihood that consumer price inflation will rise, and a sharp increase in the money supply. Interest rates may not be raised over the short term, since temporary tax refunds are one reason for strong consumer spending, which may slacken without intervention. Inflation is also low, and the tight labor market may not be such a problem as previously feared. There could still be a US rate rise over the longer term.
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Article Abstract:
The possibility of interest rate convergence between mainland Europe and Britain is examined, as are other developments in financial markets.
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Article Abstract:
The impact of interest rate reductions on the US economy is examined in detail.
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