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U.S. Federal Reserve board member Lael Brainard speaks after she was nominated by U.S. President Joe Biden to serve as vice chair of the Federal Reserve, in the Eisenhower Executive Office Building’s South Court Auditorium at the White House in Washington, U.S., November 22, 2021. Kevin Lamarque | Reuters Federal Reserve Vice Chair Lael Brainard on Friday stressed the need to tackle inflation and the importance of not shrinking from the task until it is finished. "Monetary policy will need to be restrictive for some time to have confidence that inflation is moving back to target," the central bank official said in remarks prepared for a speech in New York. "For these reasons, we are committed to avoiding pulling back prematurely." related investing news Credit Suisse issues dire global economic outlook: 'Worst is yet to come' Jeff Cox a day ago The remarks came a little more than a week after the Fed enacted its fifth interest rate increase of the year, pus...

LONDON — Britain’s central bank raised its key interest rate by another half-percentage point Thursday, avoiding more aggressive steps to tame inflation that the U.S. Federal Reserve and other banks have taken. It is the Bank of England’s seventh straight move to increase borrowing costs as rising food and energy prices fuel a cost-of-living crisis that is considered the worst in a generation. Despite facing a slumping currency, tight labor market and inflation near its highest in four decades, officials decided against acting more boldly as large hikes threaten to tip the economy into recession. The bank matched its half-point increase last month — the biggest in 27 years — to bring its benchmark rate to the highest level in 14 years at 2.25%. The decision was delayed for a week as the United Kingdom mourned Queen Elizabeth II and comes after new Prime Minister Liz Truss’ government announced a cap on spiraling energy bills for households and businesses. The energy relief package m...

Fog shrouds the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and the commercial office block No. 1 Canada Square, on the Isle of Dogs on November 05, 2020 in London, England. Dan Kitwood | Getty Images News | Getty Images Investors should avoid allocating to Europe in the hunt for value stocks, as the continent's energy crisis means the risk-reward is still not there, according to Willem Sels, global CIO at HSBC Private Banking and Wealth Management. The macroeconomic outlook in Europe is bleak as supply disruptions and the impact of Russia's war in Ukraine on energy and food prices continue to stifle growth, and force central banks to tighten monetary policy aggressively to rein in inflation. related investing news Credit Suisse says buy stocks with this characteristic popularized by Warren Buffett Sarah Min 2 hours ago Is it time to buy Treasurys? Here's how to allocate your po...

VIDEO 5:55 05:55 Fed's Powell warns of 'some pain' ahead as central bank fights inflation Squawk on the Street Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause "some pain" to the U.S. economy. In his much-anticipated annual policy speech at Jackson Hole, Wyoming, Powell affirmed that the Fed will "use our tools forcefully" to attack inflation that is still running near its highest level in more than 40 years. Even with a series of four consecutive interest rate increases totaling 2.25 percentage points, Powell said this is "no place to stop or pause" even though benchmark rates are probably around an area considered neither stimulative nor restrictive on growth. "While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring som...

JACKSON HOLE, Wyo. — The U.S. economy will need tight monetary policy “for some time” before inflation is under control, Federal Reserve Chair Jerome Powell said on Friday in remarks that warned of slower growth, a weaker job market and “some pain” for households and businesses. “Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell said in a speech kicking off the Jackson Hole central banking conference in Wyoming. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.” As that pain increases, Powell said, people should not expect the Fed to dial back its monetary policy quickly until the inflation problem is fixed. Some investors anticip...