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How high will interest rates get in 2022?

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The world is grappling with the rising cost of living, but exactly how long will the price hikes continue?

On a global scale, the economy is still trying to cope with the ongoing fallout from Russia’s invasion of Ukraine.

And on top of that, China’s ongoing covid lockdowns are impacting global trade. This has sent the price of necessities skyrocketing, with groceries and petrol prices hurting the back pocket.

The key U-S banking authority just gave the public an insight into its state of mind, releasing minutes from the latest policy meeting.

The Federal Reserve has indicated that interest rate hikes could go higher than anticipated in an attempt to cool inflation.

Officials have confirmed they are willing to go ahead with multiple 50 basis points rate increases.

 

“The markets responded very favourably today…The Fed is getting ready to not allow the markets to fall much further”

octavio marenzi

But exactly how high will interest rates go?

“I think it’s going to be a good deal higher than 3.5 or 4%”

Octavio marenzi

The new data shows that there is some hope when it comes to cooling inflation, but also clearly shows there’s skepticism about financial stability.

Went we look at housing, sales of new houses have declined by approximately 16%, with many concerned that buying a house is simply out of reach for people right now.

This is, of course, on top of sky-high petrol prices, groceries, and minimum wages.

“For many Americans, housing is now out of reach… Houses are very expensive… It’s having an affect on home owners and home renters”

octavio marenzi

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Iran live updates: Rubio warns hardest US strikes yet to come as toll rises

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What’s happening in the Middle East?

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Oil prices surge amid rising Middle East conflict risks

Crude oil surges 7% amid fears of Middle East conflict; Strait of Hormuz disruptions may push Brent over $100.

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Crude oil surges 7% amid fears of Middle East conflict; Strait of Hormuz disruptions may push Brent over $100.

Crude oil prices spiked dramatically as investors react to the growing risk of a wider conflict in the Middle East. U.S. crude surged 7.2 percent, trading near $71.84 a barrel, signalling heightened concern across energy markets.

The Strait of Hormuz, a critical shipping chokepoint, has come under intense scrutiny. Rising war-risk insurance premiums and suspended tanker traffic are already slowing the movement of oil, creating ripple effects in global supply chains.

JPMorgan has warned that prolonged disruptions over three weeks could force Gulf producers to reduce output, potentially pushing Brent crude prices to between $100 and $120 a barrel. Markets are closely watching for developments that could reshape global energy pricing.

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Trump warns of last opportunity to hit Iran as conflict escalates

Trump declares final chance to strike Iran, aiming to dismantle missile systems and prevent nuclear weapons amid U.S. troop losses.

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Trump declares final chance to strike Iran, aiming to dismantle missile systems and prevent nuclear weapons amid U.S. troop losses.

President Trump has declared this is the final opportunity to strike Iran as conflict intensifies across the Middle East, outlining four key military objectives including dismantling Iran’s missile capabilities and targeting its navy.

The U.S. says its mission is to prevent Iran from acquiring a nuclear weapon and to halt its alleged support for terrorist groups abroad, signalling a potentially prolonged campaign in the region.

Four U.S. troops have already been killed, with officials warning further casualties are possible as operations continue.

#Trump #Iran #MiddleEast

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