FRANKFURT, Germany (AP) — The European Central Bank plans to move ahead of the U.S. Federal Reserve on Thursday in cutting interest rates, making the...
on Thursday in cutting interest rates, making the eurozone the biggest rich-world economy to start easing borrowing costs for businesses and consumers as the inflation that arose afterthat a quarter-point rate cut from the current record high of 4% is more than likely when the bank's 26-member governing council meets at the institution's skyscraper headquarters in Frankfurt , Germany .
Fed Chair Jerome Powell has said the bank expects to cut rates this year from the current benchmark level of 5.25%-5.5%, but no change is expected at the Fed's next policy meeting on June 11-12. WithWidening the rate gap between Europe and the U.S. could, in theory, weaken the euro against the dollar by pulling more investment money out of the eurozone and into dollar holdings in search of higher returns. That would hurt the ECB's inflation battle by making imports more expensive.
Growth in economic output has hovered just above and below zero for more than a year before a modest upbeat surprise in the first three months of the year, when gross domestic product rose 0.3% from the quarter before. Analysts say a quarter-point cut on Thursday would likely not usher in a swift series of further cuts as the bank waits to make sure inflation is under control while easing credit to help the economy. Inflation in the services sectors, a broad category that includes everything from medical care and haircuts to hotels, restaurants and concert tickets, remains elevated at 4.1%
In an update posted at 9 p.m. last night NYSE said it would "bust" all the "erroneous" trades of Berkshire Hathaway stock at or below $603,718.30 a share. -- Axos Financial Inc., which has lent to properties including former President Donald Trump’s flagship New York tower, plunged after Hindenburg Research said it was short the stock because of the bank’s exposure to problematic commercial real estate loans.
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