The US economy no longer needs increasing amount of policy support, said Fed Chair Jerome Powell as he announced that the central bank would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022. More on that in today's top headlines
Rupee's depreciation spells trouble for stock prices
A steady depreciation in the rupee spells trouble for the rally on D-Street. Historically, most rallies in the equity market have occurred either when the rupee has appreciated or has been stable. In contrast, a decline in the value of the rupee against the dollar has been accompanied by market decline. Read more
US Fed signals 3 rate hikes in the cards in 2022
The federal reserve said on Wednesday it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment and the U.S. central bank copes with a surge of inflation. Read more
Banning of crypto poses challenges: IMF's Gita Gopinath
International Monetary Fund (IMF) chief economist Gita Gopinath said on Wednesday that cryptocurrencies were proving to be a challenge for emerging markets and that strong regulation was needed for the sector.
She, however, said there were practical obstacles to banning cryptocurrencies, given their decentralised nature. Read more
Unholy nexus between ARCs and borrowers found: CBDT
The Income Tax Department has found an “unholy nexus” between four asset reconstruction companies (ARCs) based in Mumbai and borrower groups after they were raided recently, the CBDT said on Wednesday.
The searches were launched on December 8, and a total of 60 premises in Mumbai, Ahmedabad, Delhi and few other places were covered. Read more
Despite EV hype, will India be the last major economy to ditch auto fuels?
On a smog-filled Monday, a colleague hailed a cab. The chirpy, middle-aged driver enquired if she owned a car, and, if so, was it an electric vehicle (EV). On hearing that it was an old vehicle, he suggested that she opt for an EV. The colleague, a slow adopter of new technologies, wondered if EVs would be a smart investment given the lack of infrastructure. But the driver opined that EVs would multiply, led by a proliferation of charging outlets. Read more
