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What effect will Biden stimulus plans have on Fed policy?

What impact will Biden stimulus plans have on Fed policy? Federal Reserve officials convene this week for their first gathering of 2021 against a backdrop of surging coronavirus cases and further evidence that the economic recovery has fizzled. Investors, however, have largely looked past these growth headwinds, instead focusing their attention on the potential injection of $1.9tn… Continue reading What effect will Biden stimulus plans have on Fed policy?

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Biden faces first foreign policy test with Russian balancing act

On only its first full day in office, the Biden administration was facing its first big foreign policy test in the same place that hung over its predecessor for four years: Russia.  Living up to a campaign commitment, the White House said on Thursday it wanted a straight extension of a nuclear arms control agreement… Continue reading Biden faces first foreign policy test with Russian balancing act

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The right answer to Xi Jinping is a one-China policy

America has a new president, and the west needs a new China policy. The relationship between Washington and Beijing will shape the geopolitical landscape for decades and beyond. Joe Biden’s administration has an opportunity to set the parameters. The question most often raised by western approaches to China is whether they are directed towards an… Continue reading The right answer to Xi Jinping is a one-China policy

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Pompeo tries to pin Biden down with parting foreign policy blitz

Less than a week before his departure, US Secretary of State Mike Pompeo launched a deluge of last-minute measures that will prevent the incoming Biden administration from shifting to foreign policy. In the space of four days, the United States designated Cuba as a sponsoring state of terrorism, said the Yemeni Houthis linked to Iran… Continue reading Pompeo tries to pin Biden down with parting foreign policy blitz

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France’s Total quits powerful US oil lobby over climate policy

French energy company Total has become the first oil major to ended its membership of the American Petroleum Institute, Big Oil’s powerful Washington lobby group, citing its stance on climate change and support for politicians who opposed the Paris agreement. The move exposes a growing rift between US and European oil supermajors on climate policy,… Continue reading France’s Total quits powerful US oil lobby over climate policy

Business news

Shift in Europe policy likely as Germany’s CDU elects new leader

When Angela Merkel and Emmanuel Macron unveiled their revolutionary plan for a 500 billion euro pandemic stimulus fund last May, a prominent German politician expressed deep misgivings. This weekend, he could be elected leader of Ms Merkel’s party. Friedrich merz said that the idea of ​​the EU raising funds in financial markets and distributing them… Continue reading Shift in Europe policy likely as Germany’s CDU elects new leader

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Powell moves to stamp out market fear of exit from loose policy

Jay Powell has sought to stamp out fears that the Federal Reserve will start cutting back on asset purchases later this year, saying the central bank was far from considering an “exit” from its assets. ultra-flexible monetary policies. Speaking at a virtual event hosted by Princeton University on Thursday, Powell said the Fed knew it… Continue reading Powell moves to stamp out market fear of exit from loose policy

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Joe Biden needs an America-first foreign policy

In capitals across the globe, America’s allies have penned lengthy wishlists for president-elect Joe Biden. They want the new administration to refurbish alliances, rejoin the Paris climate change accord, re-engage in nuclear talks with Iran, re-establish clear terms of engagement with Beijing and Moscow and respect global trade rules. That’s just a start. Most of… Continue reading Joe Biden needs an America-first foreign policy

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A fiscal policy for all seasons

Fiscal orthodoxy has changed. Organisations such as the IMF and the OECD have told governments that, with low interest rates seemingly here to stay, the costs of excessive borrowing are much lower for advanced economies than previously thought. The benefits, too, are greater, given the need for governments to take some of the burden off… Continue reading A fiscal policy for all seasons

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US Treasuries dance to different tune as fiscal policy takes precedence

A bruising start to the year for US government bonds has been accompanied by a striking shift in investor behaviour, with Treasuries becoming more sensitive to expected changes in fiscal rather than monetary policy. Victories in key Senate run-offs last week sparked investor bets that the incoming Biden administration will inject another major stimulus into… Continue reading US Treasuries dance to different tune as fiscal policy takes precedence