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ECB maintains copious stimulus even as recovery takes hold

U S Treasury s Yellen says Congress needs to fund debt relief programs

3 Min Read WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen told lawmakers on Thursday that debt relief for poor and developing countries would be hampered without new funding, while $2.7 billion in current unmet U.S. commitments to the World Bank, International Monetary Fund and other institutions would grow. Yellen, in prepared remarks to a U.S. House of Representatives Appropriations subcommittee, said that the G20 Debt Service Suspension Initiative for poor countries and a new debt restructuring “Common Framework” both need funding from Congress. “Without new funding, the United States could be forced to delay the multilateral debt process under the Common Framework and charge much higher interest rates on DSSI debt service suspensions,” Yellen said.

Be very careful: US inflation could soon be toxic for global markets

Be very careful: US inflation could soon be toxic for global markets The reopening sugar rush in the West might fade sooner than we hope, but right now the Fed is dangerously behind the curve 9 June 2021 • 7:00pm Deutsche Bank has come close to accusing the US Federal Reserve of an economic crime. It does not think the inflation strategy of the world’s superpower central bank is remotely credible. Nor do I. The language is unusual for a report by a big global lender: “chain of financial distress around the world”; “sitting on a time bomb”; “the effects could be devastating, particularly for the most vulnerable in society”. It stops short of flagging a synchronised equity and bond market crash, but that is the implication.

U S Fed s reverse repo volume surges to record half a trillion dollars

2 Min Read FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won NEW YORK (Reuters) -The Federal Reserve’s reverse repurchase window on Wednesday took in $503 billion in cash, hitting a record peak for a third consecutive session, as financial institutions flush with liquidity flocked to the Fed facility to park their cash and secure Treasury collateral. The U.S. Treasury has targeted a $450 billion cash balance by the end of July, the debt ceiling deadline. To get there, the Treasury needs to spend its cash, which usually ends up on bank balance sheets, often in the form of money market funds.

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