News and Trends
Interest rates start to fall in Europe as the Fed lags - Yahoo! Finance--5.9.24
European rate setters are turning dovish while the U.S. Federal Reserve stays cautious about cutting rates too soon. The European Central Bank is widely expected to lower rates in June, with inflation close to its 2% target. 
‘Seriously Underwater’ Home Mortgages Tick Up Across the US- Yahoo! Finance--5.8.24
Roughly one in 37 homes are now considered seriously underwater in the U.S. and that share is much higher across a swath of southern states. Nationally, 2.7% of homes carried loan balances at least 25% more than their market value in the first few months of the year.
The US government is paying $2 million of interest a minute as rates stay high - Markets Insider--5.6.24
The U.S. government is shelling out $2 million per minute in interest payments on its debt. The surge in interest rate expenses has coincided with higher for longer interest rates and those interest payments are expected to continue rising for the foreseeable future.
Inflation is scrambling Americans' perceptions of middle-class life - Business Insider--5.5.24
Many Americans have come to feel that a middle-class lifestyle is out of reach. Inflation is bringing down the mood and making the economy seem much worse than it is.
The first bank failure of 2024 highlights the risks facing regional banks - QZ--5.2.24
Philadelphia-based Republic First Bank was shuttered last week and was the first bank failure of 2024. While it was small and relatively isolated, it's just one glimpse into how higher-for-longer interest rates are continuing to ripple through the already-downbeat banking sector.
Using debt to finance government spending is not a free lunch - Market Watch--5.1.24
Many economists over the years have argued that the potential benefits of using debt to finance government spending far outweigh any associated costs. The tide has turned over the last few years, as this type of magical thinking collided with the harsh realities of high inflation and the return to normal long-term real interest rates.
Why hundreds of U.S. banks may be at risk of failure - CNBC--5.1.24
Hundreds of small and regional banks across the U.S. are feeling stressed. One consulting firm analyzed about 4,000 banks and found that 282 face the duel threat of commercial real estate loans and potential losses tied to higher interest rates.
Fed holds interest rates steady, gives no sign it will cut soon as inflation fight stalls - USA Today--5.1.24
The Federal Reserve has decided to hold its key interest rate steady again and gave no signal that it plans to lower it anytime soon following a resurgence of inflation early this year. The concerns about persistent inflation suggest the Fed likely won't be prepared to cut rates for at least a few months.
BRICS: Another Country Officially Ditches the US Dollar - Watcher.Guru--4.24.24
On the heels of de-dollarization and sanctions a new country has officially ditched the U.S. dollar for oil trade. Venezuela's state-run oil company PDVSA plans to use digital currencies to settle crude oil trade and not the U.S. dollar.
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