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  Reuters

  Analysis-US bond investors brace for shift in market as rate peak elusive

  U.S. bond investors were gauging how to navigate a prolonged period of higher interest rates that some expect to weigh on U.S. growth, after the Federal Reserve on Wednesday left open the possibility of more rate increases and excluded easing financial conditions anytime soon. With its latest 25 basis point interest rate increase now in the books, the Fed has raised the benchmark overnight interest rate by 525 basis points since March 2022 to a level last seen before the 2007 housing market crash in a fight to bring down inflation. Cooling consumer prices and a resilient economy have sparked rallies in stocks this year and Fed Chairman Jerome Powell on Wednesday said a recession is unlikely - a sharp reversal from the mood earlier this year, when both the Fed and investors believed a downturn was all but unavoidable.

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  Reuters

  US economic growth accelerates in second quarter; weekly jobless claims fall

  The U.S. economy grew faster than expected in the second quarter as labor market resilience underpinned consumer spending, while businesses boosted investment in equipment, potentially keeping a much-feared recession at bay. Outside the housing market and manufacturing, the economy has largely weathered the 525 basis points in interest rate hikes from the Federal Reserve since March 2022 as the U.S. central bank battled inflation. Economists have since late 2022 been forecasting a downturn, but with price pressures retreating, some now believe that the soft-landing scenario for the economy envisaged by the Fed is feasible.

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  Reuters

  Argentina could again use yuan to evade IMF default

  LONDON/NEW YORK (Reuters) -Time is running out for Argentina to secure the next tranche of a $44 billion loan with the International Monetary Fund, which it could use to repay the fund older debt due in coming days. With both sides saying an agreement on policy steps required to release $4 billion from the IMF loan was close, but not quite there yet, and no liquid currency reserves to tap, Buenos Aires may need to use a swap line with Beijing, again, to make a $3.4 billion payment. Under the terms of the $44 billion program agreed in 2022, the funds are released in tranches based on regular reviews of steps Argentina takes to shore up its economy.

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  Bloomberg

  New Turkish Central Banker Redraws Inflation Path But Not Policy

  (Bloomberg) -- Turkey’s new central bank governor delivered a sobering assessment on inflation but pledged to stick with a “gradual” cycle of monetary tightening despite more than doubling the forecast for price gains.Most Read from BloombergSubway Offers Free Sandwiches That Come With a Lifetime CommitmentPowell Has Stopped Handing Gifts to Wall Street on Fed DayFed Raises Interest Rates to 22-Year High, Leaves Door Open for MoreHunter Biden Plea Deal in Limbo After Judge Questions TermsUkraine