Fears of rising interest rates to dampen inflationary pressure as the global economy bounces back from Covid-19 has sent shares tumbling on both sides of the Atlantic. In London, the FTSE index failed to cling on to its early gains once Yellen’s comments became known – dropping 130 points from its high-point of the day to close 46 points lower at 6923 points. Share prices have been rising in recent weeks on hopes of a bounce-back in activity in the developed nations where vaccine programmes are most advanced. Sign up to the daily Business Today email“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said. Not enough chips the central issue today, not the kind that soaks up the alcohol but the kind that keeps supply chains moving.

Source: The Guardian May 04, 2021 18:11 UTC