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Hot Stock Rally Stirs Fears Over Wall Street's Big Rate-Cut Bets bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Central bank digital currencies are increasingly regarded worldwide as viable means of payment. But how do CBDCs affect welfare when used as stores of value? A recent study investigates the ramifications of CBDCs as public money serving as stores of value, customers’ heterogeneous beliefs about bank stability and how it all impacts banks. ....
Federal Reserve Chair Jerome Powell and other Fed policymakers meet this week to raise borrowing costs again in a fight against the highest inflation in four decades that they're not close to winning. ....
Credits: Image: Christine Daniloff, MIT; stock imagery Previous image Next image The stock market is a staple of business news, but it is unclear how meaningful stock prices are to the larger economy. Do changes in stock prices directly affect shorter-term consumption, or are they just leading indicators for subsequent economic activity? The U.S. Federal Reserve, for its part, usually seems to act as if stock-based wealth does help drive spending and employment. But is this correct? A new study co-authored by an MIT economist brings data to the discussion and finds that increased stock market wealth has moderate but clear economic effects. After looking at the U.S. on a county-by-county basis, the study finds that after large market shifts, people spend about 3.2 cents per year out of each increased dollar of stock wealth they possess. There are also distinct employment effects in “nontradable” that is, place-situated i ....