Euro Zone Inflation Falls to 1.6%
The European Union announced that annual inflation in the Euro Zone for the month of November fell to 1.6 percent from 3.2 percent for the month of October. Eurostat – the statistical branch of the European Union – noted that much of the reduction was due to lower energy costs. More
Euro Falls on Speculation of Rate Cut
With November inflation fallling to just 1.6 percent in the European Union, pressure grows on the European Central Bank (ECB) to cut lending rates. The latest inflation results come in under the 2.0 percent target the ECB aims for and well below the 3.2 percent rate for October showing clearly that EU growth is slowing. More
Gas Shortages in Eastern Europe Reach “Crisis”
A severe disruption in the flow of gas to eastern European countries has resulted from Russia’s shutting down of three of the four pipelines that run through the Ukraine and supply nearly a quarter of the gas used by the European Union. Russia’s Gazprom and the Ukraine government have been in a bitter dispute for several weeks over claims of non-payment. More
Federal Reserve Attempts to Reduce Rate Spreads
After reducing the benchmark rate to just 0.25 percent in an attempt to invigorate seized credit markets, consumer lending rates in the US remain mostly unchanged. In order to reduce the widening gap between Treasury yields and consumer lending rates, the US Federal Reserve may be forced to purchase more assets under the Troubled Asset Relief (TARP) program introduced late last year. More
