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The Fed raises interest rates by 75 points. Such aggressiveness has not been seen for 28 years – Monetary Policy

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2 years ago

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The Fed raises interest rates by 75 points. Such aggressiveness has not been seen for 28 years - Monetary Policy

The US Federal Reserve raised the federal funds rate by 75 basis points, which thus moves into a range of 1.5% to 1.75%.

The US central bank began a cycle of raising key interest rates in March last year, increasing them by 25 basis points. At the next meeting in May, it increased even more: by 50 basis points. At the time, he ruled out the option of a 75-point increase, and the consensus pointed to two more increases, 50 basis points each, at the June and July meetings.

It turns out that since the end of last week, bets began to rise that the Fed could go 75 basis points to try to contain inflation – which in May unexpectedly updated the maximum of the last 40 years (at 8.6%). , as the peak is estimated to have passed.

This is exactly what happened, making it the biggest increase since 1994.

In addition, the Fed has signaled that it will continue to raise interest rates this year at the fastest rate in decades, while trying to slow the economy and fight inflation.

Central bank governor Jerome Powell has already said that the Fed may raise interest rates at every meeting this year, but the size is larger than originally expected.

However, the scatter plot – a map showing how each central banker views interest rate changes – points to a 50 basis point increase in interest rates at all other Fed meetings this year, that is, in July, September, November and December. .

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According to the scatter plot, the Fed points to a discount rate of 3.4% at the end of 2022, 3.8% at the end of 2023 and 3.4% at the end of 2024.

However, the Federal Reserve changed the reference to the 2% inflation target from “expected” to “mandatory”.

Powell has already spoken at the usual press conference after the announcement of the monetary policy decision and stressed that inflation is too high and that there is a tendency for inflationary pressures to increase further.

The Fed chairman said a 75 basis point increase should not be the norm, but he did not rule out such a possibility at the July meeting (pointing to a 50 or 75 basis point increase at that meeting).

Jerome Powell also said that after the likely hike in key interest rates, the federal funds rate should also move to a more normal basis at the next meeting, which will allow central banks to consider the necessary measures from there.

The rise and fall of interest rates in recent years

After about seven years of no change in interest rates (they were cut in December 2008), which remained at historical lows between 0% and 0.25%, the Federal Reserve raised interest rates nine times between the end of 2015 and December 2018 .

The Fed made its first hike (by 25 basis points) in December 2015 and then raised the discount rate again by 25 basis points in December 2016. This was followed by three more increases of 25 basis points in 2017 and four more increases in 2018.

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However, in July 2019, he made his first cut since December 2008. That is, after 10 and a half years, he returned to the policy of stimulating the economy, at the moment of deceleration.

Powell said this 25 basis point cut in the federal funds rate in July would not be the beginning of a long cycle of cuts. But in September of that year, interest rates fell again, and this happened again at the October monetary policy meeting when they returned to the 0% to 0.25% range. And so it continued until March of this year, when a new cycle of ascents began.

(news updated at 20:16)

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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1 year ago

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December 20, 2022

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Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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1 year ago

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December 20, 2022

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The first Dacia hybrid. "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

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1 year ago

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December 19, 2022

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market


Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available.  The proof is in what was presented to the public and surprised most people.


To prove the quality of this new proposal, Tesla published in your LinkedIn account new video.  In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.




Tests to prove its durability


It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face.  It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.


This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy.  Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.


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high quality electric truck


Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge.  The big news here is that he managed to make this long journey with a maximum load of about 37 tons.


Now Tesla remains to widely place the Semi on the market.  At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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