The election of Donald Trump as U.S. president has done nothing to change the Federal Reserve's plans for a rate increase "relatively soon," Fed Chair Janet Yellen said on Thursday in Congressional testimony that included a pledge to serve out her term. U.S. Federal Reserve Board chair Janet Yellen testifies before a Congressional Joint Economic hearing on Capitol Hill in Washington, DC, U.S. November 17, 2016. Yellen said the U.S. central bank would change its outlook as necessary as the new administration rolls out plans for perhaps hundreds of billions of dollars in tax cuts and additional government spending. She also suggested the new government keep in mind that the United States is near full employment and inflation may be rising. "Markets are anticipating ... a fiscal package that involves a net expansionary stance of policy and that in a … [Read more...] about Yellen says Fed could raise interest rates ‘relatively soon’
Expected growth rate formula
HA NOI — The State Bank of Viet Nam yesterday sent strong warnings to leaders of Kien Long Commercial Jointstock Bank and Phuong Tay Commercial Jointstock Bank after investigators discovered their deposit interest rates were higher than regulated. The cap on the rate of Vietnamese dong is 14 per cent per year but Phuong Tay's Ha Noi branch was offering up to 17.8 per cent and Kien Long's Dak Lak branch was offering 15.7 per cent on one-month deposits. Postal service to market life insurance products HA NOI — Prevoir Viet Nam Life Insurance Ltd Company (Prevoir Vietnam) signed a contract on Thursday to co-operate with the Viet Nam Post Joint Stock Co (VNPost Express) in distributing Prevoir Viet Nam's life insurance products. Other distribution channels are the Viet Nam Post Company and commercial banks. Import tax on sugar to be cut substantially in April HA NOI — Import tax of raw and processed sugar would be reduced from 40 per cent to 15 per cent as of April 15, … [Read more...] about Banks warned for violating interest rate regulations
The US Federal Reserve has cut its growth forecast for 2014 because of the harsh winter weather. The central bank is now predicting growth of between 2.1% and 2.3% for this year, down from its March forecast of 2.8% to 3%. However in its accompanying statement, the bank said that economic activity had "rebounded in recent months". As expected, it has also trimmed back its stimulus programme by $10bn (£5.9bn) a month to $35bn. The central bank has been buying bonds to keep long-term interest rates low and encourage banks to lend. This is the fifth cut in purchases since December and it is expected to stop buying bonds altogether by the autumn. However the chair of the bank, Janet Yellen, stressed that this was not a pre-set programme and if necessary it would change course. As far as interest rates go, the bank said they would remain near zero "for a considerable time" after the bond buying ends. Questioned as to how long that might be, Ms Yellen said there was "no mechanical … [Read more...] about US central bank cuts growth forecast for 2014
Exchange Rates And Foreign Debt By Huynh The Du (*) This article argues that devaluing the domestic currency will help Vietnam achieve better growth and enhance its debt payment capabilities, instead of increasing its financial burden Figures from the Ministry of Finance show that Vietnam’s foreign debt stood at some US$22 billion in late 2008, equal to 29.8% of GDP. The Government incurred direct debt of US$19 billion and underwrote a sum of US$3 billion. At an exchange rate of VND18,000/US$1, Vietnam’s foreign debt equaled VND396 trillion, higher than the expected fiscal revenue in 2009 (VND390 trillion). If the exchange rate rises to VND20,000/US$1, foreign debt will soar to VND440 trillion, up by VND44 trillion, or 11% of the expected fiscal revenue in 2009. This staggering figure is used to support the claim that devaluing the dong will increase Vietnam’s debt burden. However, this is not the case. After all, foreign debt must be repaid in foreign currency, so … [Read more...] about Exchange Rates And Foreign Debt
The caps, set to take effect on June 11, are 10-15 per cent lower than the current wholesale prices of the products and, in some cases, 20 per cent lower than market rates.— Photo khampha Compiled In late April the finance ministry examined the country's five largest formula milk producers and decided to cap the prices of the 25 most popular products in an attempt to protect consumers. The five companies — Vinamilk, Nestle Vietnam, Mead Johnson Vietnam, Friesland Campina Vietnam, and 3A Nutrition Vietnam, the authorized distributor of Abbott — together hold 90 per cent of the market for formula for children under six, who number 10 million. Among the products whose prices will be capped are Enfamil A+1 900g, Enfamil A+2 900g, Dielac Alpha 123 HT 900g, IMP Friso Gold 3 1,500g, NAN 2 BL InfMPwdr LEB011A-2 800g VN, Enfagrow A+3 vanilla 1,800g, and Grow G-Power vanilla 900g. The caps, set to take effect on June 11, are 10-15 per cent lower than the current wholesale … [Read more...] about Will formula milk price caps benefit consumers?