Category: Interest Rates

Europe’s central bank cuts interest rates for first time in 5 years

ECB President Christine Lagarde. Reuters The European Union just made its first cut to interest rates in five years. The European Central Bank lowered its main interest rate from 4% to 3.75%. Officials tend to lower interest rates when inflation is under control and they want to lift growth. The European Union has become the latest global economy to cut its benchmark interest rate. The…

Billionaire Barry Sternlicht predicts weekly bank closures as the real estate sector battles high interest rates and inflation

Craig Barritt/Getty Images Billionaire Barry Sternlicht is worried about America’s regional and community banks. Sternlicht told CNBC that banks may bear the consequences of the real estate crisis. Only one bank has closed so far this year, but Sternlicht said more could be coming. Billionaire Barry Sternlicht offered an ominous prediction about America’s regional banks amid a coming commercial real estate reckoning. The Starwood Capital…

Don’t feel too sorry for Gen Z — they’re outpacing boomers on income and millennials on home ownership

Gen Z is doing better than past generations on some measures. Hero Images/Getty Images Gen Z is feeling disillusioned over the prohibitive cost of having kids or buying a home. Past generations earned less, owned homes at lower rates, and spent more of their money on housing. But Gen Z is living at home for longer and received a financial boost during the pandemic. Gen…

Why the Fed needs to cut interest rates to lower inflation, according to a JPMorgan strategist

US Federal Reserve Chair Jerome Powell attends a press conference in Washington, DC, on March 22, 2023. Liu Jie/Xinhua via Getty Images If the Federal Reserve wants to lower inflation, they need to cut interest rates, according to JPMorgan. JPMorgan strategist Jack Manley said lower interest rates would help lower shelter costs. “You’re not going to see meaningful downward pressure on shelter costs until the…

25 million student-loan borrowers could get up to $20,000 in debt wiped out under Biden’s new debt relief plan

President Joe Biden. Nic Antaya/Getty Images Biden unveiled new details for his second attempt at student-loan forgiveness. The plan would wipe out up to $20,000 in unpaid interest for 25 million borrowers. If implemented as proposed, the full plan is expected to benefit over 30 million borrowers. President Joe Biden’s new plan for student-loan forgiveness would tackle a key issue for many borrowers: surging interest….

Russia says its economy is off to a — mostly — roaring 2024

Russian President Vladimir Putin. Kirill Kudryavtsev/AFP/Getty Images The Central Bank of Russia is maintaining a 16% interest rate due to a thriving economy. The economic growth is due to an increase in consumer activity and wage gains. But there are potential risks ahead, including the potential impacts of sanctions on foreign trade. Russia’s economy is running so hot the Central Bank of Russia is holding…

The housing market is thawing as an increasing number of ‘mortgage lock’ homes go up for sale, JPMorgan says

Fitch Ratings found that homes in 91% of US metro areas were overvalued in the third quarter. Richard Newstead/Getty Images The housing market looks to be gradually approaching a recovery. A growing number of mortgage-locked homes are going up for sale, JPMorgan said. Existing home sales, meanwhile, jumped nearly 10% in February. The housing market looks like it’s starting to thaw, thanks to a growing…