More interest rate hikes needed despite slowing US inflation, Fed officials say

Slowing US inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policy-makers left no doubt they will continue to tighten monetary policy until price pressures are fully broken. A US Labor Department report Wednesday showing consumer prices didn’t rise at all in July compared … Read more

Earth’s Days Are Mysteriously Getting Longer, Scientists Say

Atomic clocks, combined with precise astronomical measurements, have revealed that the length of a day is suddenly getting longer, and scientists don’t know why. This has critical impacts not just on our timekeeping, but also things like GPS and other technologies that govern our modern life. Over the past few decades, Earth’s rotation around its … Read more

Zimbabwe introduces gold coin to help bolster collapsing currency

Reserve Bank of Zimbabwe Governor John Mangudya holds a sample of a gold coin at the launch in Harare on July, 25.Tsvangirayi Mukwazhi/The Associated Press Faced with a collapsing currency and the world’s worst inflation rate, the Zimbabwe government has introduced an unconventional new weapon: a 22-carat gold coin with a value of more than … Read more

Canada’s economy is slowing quickly on bite from inflation, rising rates

The Canadian economy posted robust growth in the second quarter, but there are mounting signs of a slowdown as consumers grapple with sky-high inflation and rising interest rates. Real gross domestic product stalled in May, which was better than the initial estimate of a 0.2-per-cent drop, Statistics Canada said on Friday. The economy eked out … Read more

US consumer spending beats expectations in June; inflation accelerates

US consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005. Consumer spending, which accounts for more than two-thirds of US economic activity, rose 1.1% last month, the Commerce Department said on Friday. Data for May was revised up to … Read more

US Federal Reserve set to impose another big rate hike to fight inflation

With inflation at a four-decade high, the job market strong and consumers still spending, the Federal Reserve is under pressure to continue raising interest rates aggressively. When it ends its latest policy meeting Wednesday afternoon, the Fed is expected to impose a second consecutive three-quarter-point hike in its benchmark interest rate, raising it to a … Read more

Inflation highs, housing lows and Rogers apologies: The business and investing stories you need to know about this week

A person shops for produce at the Granville Island Market in Vancouver on July 20, 2022. Canada’s inflation rate was up 8.1 per cent in June compared with a year ago, the largest yearly change since January, 1983.DARRYL DYCK/The Canadian Press Getting caught up on a week that got away? Here’s your weekly digest of … Read more

Lessons on inflation and rates from the 21.25% mortgages and 19.5% Canada Savings Bonds of 1981

In 1981, the safest investment imaginable paid 19.5 per cent. Now discontinued, Canada Savings Bonds had a run of decades as a trusty way to save money safely. But CSBs were never better than in ’81, a year when out-of-control inflation hit 12.5 per cent. Inflation’s running at 8.1 per cent today in Canada and … Read more

Rising inflation is stressing out everyone in Canada and here’s what’s going up in cost next

There are a very few people in Canada who aren’t feeling the pressures of bonkers inflation right now, with the cost of just about everything hitting sky-high levels and continuing to rise. At this point, most residents can’t keep up with climbing prices for most items, around 70 per cent are seriously stressing about their … Read more

US consumers see inflation picking up in year ahead, but moderating over longer term: New York Fed survey

US consumers see inflation rising further in the year ahead but expect a more moderate pace over the longer term in a signal that inflation expectations – a key dynamic being closely watched by Federal Reserve officials – remain reasonably anchored, a survey from the New York Fed showed on Monday. At the same time, … Read more