Economy
Nobel Laureate Paul Krugman Slams ‘Truthers,’ Says US Economic News Increasingly Encouraging
Nobel laureate and noted economist Paul Krugman noted U.S. economic news has been increasingly encouraging while taking a dig at truthers who believe data may not be accurate.‘US economic news has been increasingly encouraging: falling inflation, no sign of a recession. And you know what that means: here come the truthers!’ he said in his tweet.Also Read: Best Penny StocksThe economist highlighted a similar instance in 2010 when, he said, many so-called truthers had questioned official data. Krugman said private inflation numbers had matched the figures released by the Bureau of Labor Statistics, commonly known as the BLS.”In the early 2010s there were inflation truthers everywhere, claiming that official data was being cooked. It helped, a bit, to point out that private inflation measures more or less matched the BLS; but I can’t think of a truther who admitted, then or later, being wrong,” Krugman tweeted.Notably, Treasury Secretary Janet Yellen recently stated that inflation has declined significantly and that she sees lower odds of a U.S. recession. “Inflation has really come down a lot — and there’s more in the pipeline,” Yellen estimated, partly owing to an anticipated adjustment in the housing market.Recession Fears: Fears about a potential recession have resurfaced lately especially after market participants began considering the possibilities of extended rate hikes following the Bank of England raising rates by 50 basis points. The U.K. witnessed a higher-than-expected inflation print in May.On the home front, Federal Reserve Chair Jerome Powell reiterated the central bank’s dedication to bringing inflation down to the 2% goal, during his Wednesday testimony before the House Financial Services Committee.Krugman highlighted the fall in inflation but acknowledged the fact that price rises are yet to revert to pre-Covid levels.”So it may not help to point out that every private survey I know basically tells the same story as the official data: continuing expansion, slowing inflation albeit not fully back to pre-pandemic. But anyway, that’s where we are,” Krugman noted.Read Next: Jim Cramer Shares Game Plan For ‘Important Week’ Ahead As Nike, Micron Gear Up To Report Earnings
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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