Rolling coverage of the latest economic and financial news
- Latest: US Fed says stimulus program could slow soon
- More officials expect first rate rise in 2022
- Summary: UK energy crisis deepens
- 800,000+ customers affected as Avro and Green cease trading
- Kwarteng ‘looking at all options’ re windfall tax… price cap ‘here to stay’
- Ofgem: More energy firms expected to fail
- CO2 prices to jump, government warns
- Full story: Bailout of US CO2 supplier will cost UK taxpayers ‘millions’
Just in: America’s central bank has signalled that it could start to slow its bond-buying stimulus scheme soon, and that interest rates could rise earlier than it previously thought.
But it’s not begun tapering its $120bn-per-month QE program yet.
If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.
FOMC says Fed may start tapering soon. Or maybe not. It all depends. https://t.co/026CeAxp4P pic.twitter.com/d5KA2ojcnf
Projections for 2024 were also published for the first time, with the median suggesting a federal funds rate of 1.8% by the end of that year. The median for 2023 rose to 1%, from 0.6% in the June projection.
BREAKING: The Fed signals it may taper bond buying soon and the updated dot plot revealed a growing inclination to start raising interest rates in 2022 https://t.co/2vI3tigqWa pic.twitter.com/rlgpOgpWxW
MORE: The Fed's dot plot now shows officials are evenly split on whether or not it will be appropriate to begin raising the fed funds rate as soon as next year
Fed Chair Jerome Powell will speak at 2:30 p.m. EThttps://t.co/FHx6EPMv8t pic.twitter.com/FWAsCSiD38
Time for a quick recap:
The UK’s energy crisis has escalated, with two suppliers with over 800,000 between them ceasing trading today. Avro Energy, which supplied gas and electricity to about 580,000 households, and Green, which had more than 250,000 customers, have dropped out of the energy market, as the surge in gas prices continues to rock the sector.
Related: 1.9m UK homes lose supplier after two more gas firms go bust
“I think what they’re doing in Spain is recognising that it’s an entire system. We’re in discussion with [energy regulator] Ofgem officials, looking at all options,”
Related: Ministers considering windfall tax on firms profiting from gas price rises
Related: Food producers warn surge in cost of CO2 will force up prices for shoppers
Related: Evergrande vows to meet local debt deadline, but doubts remain over dollar bond