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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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Trump, Newsom unite to address wildfire devastation

Trump Tours Palisades Fire Damage, Meets Gov. Newsom to Discuss Recovery Efforts After Criticism of Response.

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Trump Tours Palisades Fire Damage, Meets Gov. Newsom to Discuss Recovery Efforts After Criticism of Response.

President Donald Trump arrived at Los Angeles International Airport to assess the damage caused by the Palisades Fire in Pacific Palisades.

He was welcomed by California Governor Gavin Newsom, and the two exchanged pleasantries before addressing reporters.

Trump expressed appreciation for Newsom’s presence, stating, “We want to get the problem fixed. It’s like you got hit by a bomb.”

Governor Newsom thanked Trump for visiting the affected area and acknowledged the significant impact of the disaster.

He highlighted the need for federal support and emphasized the importance of collaboration for recovery. Newsom recalled Trump’s assistance during the COVID pandemic, expressing his hope for a cooperative effort moving forward.

Both leaders acknowledged the severe situation in Palisades and surrounding areas like Altadena, where residents are in need of help. This meeting aims to foster a partnership to address the aftermath of the wildfires.

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Musk’s visit highlights Boeing’s Air Force One problem

Musk’s Air Force One visit highlights Boeing’s struggles with delays and budget issues amid fierce competition from SpaceX.

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Musk’s Air Force One visit highlights Boeing’s struggles with delays and budget issues amid fierce competition from SpaceX.

On December 18, Musk visited Boeing’s military aircraft facility in San Antonio, Texas.

The billionaire, assigned by former US President Donald Trump to reduce government inefficiency, arrived in his Gulfstream G650.

Elon Musk visits the Boeing factory in Texas.

He came to review the new version of Air Force One, which is significantly delayed and facing a budget overrun of $2.7 billion.

This situation has become a significant issue for Boeing’s CEO, Kelly Ortberg.

Musk’s involvement is particularly striking given that his company, SpaceX, competes directly with Boeing in the aerospace sector.

His inspection of the presidential jet highlights the challenges Boeing faces in fulfilling government contracts amidst high expectations and critical scrutiny.

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Putin blames Trump election loss for Ukraine crisis

Putin claims Ukraine crisis stems from Trump’s 2020 election loss, expresses readiness for negotiations with the new US president.

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Putin claims Ukraine crisis stems from Trump’s 2020 election loss, expresses readiness for negotiations with the new US president.

Vladimir Putin stated that the Ukraine conflict could have been prevented if Donald Trump had won the 2020 election.

He described the ongoing war as a ‘crisis’ and expressed that the bloodshed in eastern Europe might not have occurred under a Trump presidency. Putin praised Trump as ‘smart and pragmatic’ and indicated his openness to negotiations concerning Ukraine.

Despite this, remarks from Putin’s Foreign Ministry criticized Western arms supply to Ukraine and questioned the legitimacy of the Ukrainian government.

Ukrainian President Volodymyr Zelensky’s office insisted that any peace talks would require European representation.

Trump had previously claimed he could resolve the war quickly if he had been president. Just after beginning his second presidential term, there have been no signs of an imminent resolution to the conflict.

He recently warned Putin of potential taxes and sanctions if Russia does not agree to peace talks.

Advisers suggested that military aid to Ukraine could be curtailed if Kyiv does not agree to a deal. Trump criticised Zelensky, implying that the Ukrainian leader should have prevented the war.

Political analysts doubt Trump’s ability to end the conflict swiftly, highlighting Russia’s advantageous position in negotiations. However, some in Ukraine remain cautiously optimistic that a Trump presidency could offer a better alternative to the current situation under President Biden.

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