welcome to the programme. amid the turmoil in uk markets this week, the chancellor met the us banks today and was told in no uncertain terms that his budget which he has planned for november is way too far away . the government needs to communicate much sooner, said the banks, on what the solution will be to the problem the city believes they created. it has been another chaotic day on the markets. this morning, the bank of england performed a screeching u turn, putting the brakes on its plan to sell government bonds and instead launching a new scheme to buy them. think of it as a form of digital money printing. the bank is creating funds to to buy bonds which the government issues to borrow money. and this is why. since the mini budget, the cost of government borrowing long term has shot up. it was spiralling above 5%. that s a 20 year high. we have seen rises in the last two days that would normally take years. the bank of england is buying up the debt, in essence creating
after aggressively raising interest rates for the last year and a half, the federal reserve believes it s in a place where it can leave rates, where they are to cool the economy and to slow inflation from its current 3.7% on a yearly basis to closer to 2%. but even though america s central bank opted not to hike right now, fed chairjerome powell suggested officials are prepared to do more if inflation flares again. the idea that you wouldn t would difficult to to raise again after stopping for a meeting or two is just not right. i mean, the committee will always do what what it thinks is appropriate at the time. right now, things look good, even though it s pricey for americans to get a mortgage or carry credit card debt. growth was stronger than expected over the summer. the world s largest economy is still adding jobs on a monthly basis. and the government s latestjobs report is due out this friday. fed staff also don t see a recession, so they don t want to rock the boat,
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