A base rate increase would send shock waves through the financial markets. What would be the effects on the economy? Made in Germany explains the base interest rate. What makes it the linchpin of the financial markets?
The US central bank has signaled it's ready to start selling more than a trillion dollars worth of assets it accumulated in the wake of the financial crisis, suggesting the US economy can do without further stimulus.
ECB chief Mario Draghi is expected to highlight the euro area's strengthening economy while underlining the need for caution as the bank inches toward ending its stimulus. But interest rates will not rise anytime soon.
After previously sparking a mini tantrum in financial markets, the ECB has tried to play a balancing act, emphasizing improved growth while tempering expectations to avoid triggering serious market volatility.
The US economy saw "slight to moderate" growth in June while signs of mounting inflation remained scarce, according to a report by the Federal Reserve. The weak wage increase is seen as a setback for US citizens.
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