Chinese authorities have waved the red flag, signaling local officials to be on guard for Evergrande’s potential demise. They said it was as if they were told to “get ready for the possible storm.” Those officials will have to step in to prevent spillover effects. On Wednesday, news broke that federal benchmark interest rates will be held near zero. However, the Fed also signaled that it may start raising rates in 2022 – one year sooner than the June prediction.

 

CNBC/Jesse Pound
China asks local officials to prepare for ‘possible storm’ if Evergrande fails, WSJ says

Chinese authorities have told local officials to prepare for a potential demise of heavily indebted property developer Evergrande, the Wall Street Journal reported on Thursday.

Local officials described the signals from Chinese authorities as “getting ready for the possible storm” and said the government told them they should only step in at the last minute to prevent spillover effects from Evergrande’s demise, the WSJ report said.

The report indicates that the central government may still have a limited appetite for bailing out the company, despite the global implications. Fears about Evergrande not being able to make interest payments have grown in recent weeks and were seen as one of the causes for market sell-offs around the world on Monday.

The company resolved payment on a local bond on Wednesday, helping to boost Asian markets. However, it is unclear if the company will pay interest due Thursday on its offshore bonds.

Read the full story, here.

 

Fox Business/Megan Henney
Fed signals tapering could begin ‘soon,’ projects interest rate liftoff in 2022

The Federal Reserve signaled at the conclusion of its two-day meeting this week that it could soon start slowing its aggressive bond-buying program, the first step that policymakers will take to dialing back pandemic-era support for the U.S. economy.

If the economy continues making progress toward the U.S. central bank’s goals on inflation and employment, “the committee judges that a moderation in the pace of asset purchases may soon be warranted,” the Federal Open Market Committee said in its post-meeting statement, released Wednesday.

The Fed continued to hold interest rates at the rock bottom level where they have sat since March 2020, when COVID-19 forced an unprecedented shutdown of the nation’s economy. It also committed to keep purchasing $120 billion in bonds each month, a policy known as “quantitative easing” that’s designed to keep credit cheap. Officials have signaled that reducing bond purchases will be the first step the Fed takes in returning to a more normal policy setting.

Read the full story, here.

 

Yahoo Finance/Grace Lin
States Where Your Retirement Will Cost Less Than $45,000 a Year

If you’re thinking about relocating to somewhere cheaper in retirement, you’re not alone — many Americans lack sufficient retirement savings to afford the cost of living in their home states after their working years are over. Moving to a more cost-effective area can help stretch your funds further in retirement, alleviating some uncertainty about your financial future.

To help you choose the perfect place to retire, GOBankingRates evaluated all 50 states and determined where you can live out your golden years for less than $45,000 annually. The study analyzed factors like groceries, housing, utilities, transportation, healthcare and the overall cost-of-living index in each state, all of which contribute heavily to your yearly expenses in retirement. These indices were then multiplied by the average annual expenditures of Americans aged 65 and older, which provided the final ranking of the top eight states.

You can see those states, here.

 

 

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