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<div type="image" title="In case RBI is in the mood to hike the interest, your home loan EMIs might end up taking more from your pockets. Or, if it leaves the rates unchanged, your EMIs wont budge one bit" msid="114284206" hostid="261" caption="&amp;lt;p&amp;gt;In case RBI is in the mood to hike the interest, your home loan EMIs might end up taking more from your pockets. Or, if it leaves the rates unchanged, your EMIs wont budge one bit&amp;lt;/p&amp;gt;"></div> On September 18, 2024, the <keyword id="19951097" type="General" weightage="20" keywordseo="us-fed" source="keywords">US Fed</keyword> delivered a jumbo-sized surprise to the global economy. Not only did they trim their interest rates by a massive 50 basis points to bring their yields down to 5%, but also hinted at further rate cuts in the upcoming months. This move from the fed and several other central banks globally had pushed expectations high for a similar rate slash closer home, from the <keyword id="19899808" type="General" weightage="100" keywordseo="rbi" source="keywords">RBI</keyword> this month. But governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword>, in a “picture abhi baaki hai” moment, decided to hold the repo rates here steady, leaving them unchanged at 6.5% for the record 10th straight time. Although, he did tinker with the policy stand, changing it from “rate cuts are absolutely off the table” to a more accommodating “we’re okay with bringing down the rates, if needed”. This, rather neutral, stance from India’s financial custodian sparked hopes for a rate cut in December this year. However, the stubborn <keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword> levels in September have again dented such hopes. As consumers, you may be wondering what all the hullabaloo this is about, since it hardly makes a difference to your regular financial routine. Well, the majority of both economic growth and inflation is closely connected to this policy stance from the central bank and it does have a rather indirect effect on both our earnings and spending. But more directly, it would have clear implications for those looking to own a house. Even the slightest modification of interest rates, or the lack of it, influences the <keyword id="19916018" type="General" weightage="20" keywordseo="emi" source="keywords">EMI</keyword> you pay significantly. So, all aspiring homebuyers, is this the right time to take out a loan and buy a house? Can you expect a rate cut anytime soon, and what will that mean for your home-owning dreams? We lay it out. <h2>What’s the connection?</h2>You see, buying a house is no small feat, at least financially. The task becomes even more herculean if you are scouting for your own roof in cities like Delhi, Noida, Bangalore or Mumbai where, as Circuit from Munnabhai says, “room shuru hote hi khatam ho jata hai”. Naturally, you’ll have to take a <keyword id="6354730" type="General" weightage="20" keywordseo="Home-loan" source="Orion">home loan</keyword> from the bank. Don’t be mistaken, the bank won't give you a loan that covers 100% of the value of the property you want to own. Rather, your loan amount will be equivalent to a certain percentage of the property’s total value. RBI’s guidelines on this are pretty clear: <ul><li>If your loan amount is up to Rs 30 lakh, you can get a loan worth 90% of the property’s value.</li></ul><ul><li>If the loan amount is between Rs 30 lakh and Rs 75 lakh, you are eligible for a loan worth 80% of the property’s value. </li><li>If you are taking a loan of more than Rs 75 lakh, your loan amount will be equivalent to 70% of the property’s value. </li></ul>Now assuming that you have the money, it's all about paying back the principal amount, but not without a little (read hefty) interest added on top. See, when you’re taking a home loan, you are actually signing up for a long-term, even multi-decadal financial commitment, which will unfailingly present itself to your bank accounts and finances every single month, in the form of EMIs, or equated monthly instalments). When you take a home loan, you can choose to pay the interest in two ways (talk about choices!). One is that you decide to keep a fixed rate of interest throughout the tenure of your home loan. So, if you opt for a 25-year fixed-rate home loan at the rate of 8.8% p.a., you’ll have to pay interest at this rate for the next 25 years, till your entire loan is paid off. Yes, you can go backsies and switch to a floating-rate home loan by paying a fee. Floating, as the name suggests, means that your interest rate is not set in stone. But starting October 2019, when it comes to a floating interest rate home loan, your payable interest and EMIs are directly impacted by any changes in <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword>, which were left unchanged by RBI this time around. Why are these two so chummy, you might ask. Well, <keyword id="173069" type="General" weightage="20" keywordseo="Home-loan-interest" source="Orion">home loan interest</keyword> rates are a sum of two things: <ol><li>Repo Rate (the rate at which RBI lends money to banks)</li><li>Operational cost + margins</li></ol>Any plus or minus in this equation would send your home loan interests tanking, or skyrocketing. Vivek Iyer, Partner, Grant Thornton Bharat explains that any change in the repo rates impacts the cost of funds and thereby the home loan interest rates. “When the interest rates are expected to reduce, the corresponding impact will be in the form of a reduced EMI. Home loan borrowers should always try to borrow at a floating rate when interest rates are expected to reduce and at a fixed rate when the interest rates are expected to increase. This minimizes the outflow in the form of EMIs that the home loan borrowers will experience”, he continues. So, no change in repo rates means no change in your home loan interest payout and no financial relief whatsoever. A rate cut, which most experts are anticipating will start this December, would mean your EMI payments come down, and your wallet might save a little more. But there’s also a chance of an UNO reverse happening. In case RBI is in the mood to hike the interest, your home loan EMIs might end up taking more from your pockets. Consider this. You took a floating interest rate home loan worth Rs 50 lakh in January 2022 at 8% p.a., for a period of 20 years. This brings your total monthly EMI to Rs Rs 41,822. But, as luck would (or won't) have it, RBI raised the interest rate by 250 basis points between May 2022 and February 2023, bringing it to its current status of 6.5%. Some back-of-the-envelope calculations suggest that now, your home loan interest payout will also rise by a hefty 2.5%, taking the total to 10.5%. In other words, you’ll have to dish out Rs 49,919 per month as EMI. Now, won't you heave a sigh of relief if the RBI were to bring down the interest rate by say, even 50 basis points, or 0.5%? Agreed, your EMI will come down just marginally, to Rs 48,251. But look at this over a 20-year period, and you’ll see how big the difference is. <h2>Are rates set to change anytime soon?</h2>Generally, RBI hikes the repo rates if it sees inflation spiralling out of control. Then, in a bid to reduce consumer spending, it raises interest rates to make borrowing expensive. But when the apex bank sees sluggish consumption in the economy, inflation in control and wants to boost spending, it slashes down on interest rates, making it more lucrative for people to borrow. As of now, most experts are not anticipating any changes in the interest rates anytime soon. This means home loans are not getting cheaper anytime soon. The CPI data, which came out yesterday, saw inflation rise to 5.49% in September, compared to 3.65% last month. Food and beverage prices jumped to a four-month high of 8.36% in September, as opposed to a 5.3% rise in August. So a rate cut seems a no-go at the moment! Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities explains that the RBI had probably expected a hardening of inflation and that's why it chose to hold on to the rates in the monetary policy announcement last week. “Now, it seems that RBI will take a cautious stance going ahead and will not be in a hurry into rate cuts like its global peers”, he added. In all this, one thing is clear, in the grand movie of the Indian economy, the RBI has chosen stability over drama. And just like in every good Bollywood film, we're left wondering what twist the sequel will bring. Until then, it might be “The End" for rate cuts, but the show must go on for the Indian economy!

Simply Put: Boom or bust — how RBI’s decision to leave rates unchanged affects homebuyers

<ul class="summary-list"><li>Netflix's "Mr. McMahon" explores how Vince McMahon built the World Wrestling Entertainment empire.</li><li>The docuseries highlights WWE's "Attitude" era and his in-ring character, Mr. McMahon.</li></ul>The six-part Netflix docuseries "Mr. McMahon" takes a deep dive into <a target="_blank" class="" href="https://www.businessinsider.com/wwe-billionaire-vincent-mcmahon-lost-billions-coronavirus-2020-10">Vince McMahon</a>'s wrestling empire, World Wrestling Entertainment, from its modest beginnings as one of many wrestling promotions scattered throughout the US in the 1960s and 1970s to the multibillion-dollar goliath it is today.But the docuseries, directed and produced by acclaimed filmmaker Chris Smith ("Jim &amp; Andy: The Great Beyond," "Fyre"), also highlights the lengths the legendary wrestling promoter would go to to keep fans engaged.<div type="image" title="Vince McMahon 1999 Royal Rumble" height="469" width="623" msid="113678480" hostid="261" sizebytes="11934"></div>This was especially evident in the "Attitude" era of WWE in the late 1990s, when TV ratings soared for the promotion thanks to stars like Stone Cold Steve Austin and The Rock. But it was also because fans couldn't stop watching the despicable antics done by McMahon as his in-ring character Mr. McMahon.The Mr. McMahon character, portrayed as a bombastic, power-crazed billionaire, would do everything from wrestling to being the center of sexually suggestive storylines at the weekly televised matches and Pay-Per-View shows. That included forcing female talent to strip in the ring, and sometimes even kissing them.McMahon also involved his wife, Linda, and two children, Shane and Stephanie, in storylines. In episode five of the docuseries (titled "Family Business"), Stephanie is interviewed and asked if her father had any storyline ideas that she refused.<div type="image" title="Stephanie McMahon" height="1636" width="2181" msid="113678478" hostid="261" sizebytes="333456"></div>"Yeah, there were a couple," she answers with a laugh. "But, yeah, I'm not going to tell that one."The doc then cuts to McMahon, who reveals in an interview what that storyline was."So, one of my storyline ideas was Stephanie gets pregnant, and I think, I think, I was the one who impregnated her, my character," he said. "No, that one didn't make it."Business Insider contacted WWE for comment but didn't get a response.In January 2024, <a target="_blank" class="" href="https://www.businessinsider.com/wwe-vince-mcmahon-resigns-following-sex-abuse-lawsuit-2024-1">McMahon resigned</a> from the board of directors of WWE's parent company, TKO Group Holdings, after a former employee filed a federal lawsuit accusing him and another former executive of sexual misconduct, including a claim that he offered her to a star wrestler for sex."I stand by my prior statement that Ms. Grant's lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth," McMahon said in a statement at the time. "I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name.""Mr. McMahon" is now streaming on <a target="_blank" class="" href="https://www.netflix.com/">Netflix</a>.

Vince McMahon once floated a WWE storyline where he got his own daughter pregnant

Mumbai (Maharashtra) [India], August 18 (ANI): <keyword id="6354335" type="General" weightage="100" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> on Friday said regulated entities (REs) have the freedom and they must offer all categories of retail loans either on a fixed or <keyword id="1104583" type="General" weightage="20" keywordseo="floating-interest-rates" source="Orion">floating interest rates</keyword> basis. At the time of sanction of EMI-based floating rate personal loans, RBI said regulated entities are required to take into account the repayment capacity of borrowers to ensure that adequate headroom or margin is available for elongation of tenor and or increase in EMI, in the scenario of a possible increase in the external benchmark rate during the tenor of the loan. In the wake of rising <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword>, RBI said it had received several grievances from consumers related to the elongation of loan tenor and or increase in EMI amount, without proper communication with and or consent of the borrowers. "In order to address these concerns, the REs are advised to put in place an appropriate policy framework meeting the following requirements for implementation and compliance," RBI said. As a part of the new rules, the central bank said: At the time of sanction, regulated entities shall clearly communicate to the borrowers about the possible impact of change in benchmark interest rate on the loan leading to changes in EMI and/or tenor or both. Subsequently, any increase in the EMI or tenor or both on account of the above shall be communicated to the borrower immediately through appropriate channels.At the time of reset of interest rates, regulated entities shall provide the option to the borrowers to switch over to a fixed rate as per their Board approved policy. The policy, inter alia, may also specify the number of times a borrower will be allowed to switch during the tenor of the loan. The borrowers shall also be given the choice to opt for enhancement in EMI or elongation of tenor or for a combination of both options; and, to prepay, either in part or in full, at any point during the tenor of the loan. All applicable charges for switching of loans from floating to fixed rate and any other service charges/ administrative costs incidental to the exercise of the above options shall be transparently disclosed in the sanction letter and also at the time of revision of such charges/ costs by the regulated entities from time to time. REs shall ensure that the elongation of tenor in case of floating rate loan does not result in negative amortisation. RBI said regulated entities shall ensure that these instructions are extended to the existing as well as new loans suitably by December 31, 2023. All existing borrowers shall be sent a communication, through appropriate channels, intimating the options available to them, RBI said. (ANI)

Banks must allow retail borrowers to switch between fixed and floating rates: RBI

<ul class="summary-list"><li>Joe Biden endorsed Kamala Harris on Sunday after dropping out of the presidential race.</li><li>Harris would likely choose a relatively moderate white man as her running mate.</li></ul>Shortly after he announced he was dropping out of the 2024 presidential race, President Joe Biden <a target="_blank" class="" href="https://www.businessinsider.com/joe-biden-endorses-kamala-harris-after-dropping-out-2024-7">endorsed</a> Vice President Kamala Harris as his replacement. Should Harris become the Democratic nominee — a <a target="_blank" class="" href="https://www.businessinsider.com/joe-biden-dropping-out-what-happens-next-2024-7">likely but not guaranteed</a> outcome — she would probably choose a moderate white man as her running mate, two people close to the Biden-Harris camp told The New York Times.Harris would become the first Black and Asian American female presidential nominee of a major party and a running mate who looks like nearly all former US presidents would likely temper the jolt to the status quo in this age of identity politics. People close to the Biden-Harris campaign told the Times that Govs. Roy Cooper of North Carolina, Andy Beshear of Kentucky, and Josh Shapiro of Pennsylvania are emerging as candidates, as is Arizona Sen. Mark Kelly.<h2 id="4583094f-6b48-495d-b167-a48f36c7feea">Gov. Roy Cooper of North Carolina</h2><div type="image" title="Gov. Roy Cooper" height="683" width="1024" msid="111913082" hostid="261" sizebytes="46410"></div>A Southern moderate, Cooper has worked alongside North Carolina's Republican-led legislature since winning a tough battle for the governorship in 2016. Before serving as governor, Cooper was the state's attorney general for nearly 16 years. He met Harris when she was the attorney general in California during that time. Some Democrats think North Carolina is up for grabs in November and that Cooper could help flip the state.<h2 id="1d9ef2fe-33cf-4c44-9022-ab5b45e8f28a">Gov. Andy Beshear of Kentucky</h2><div type="image" title="Gov. Andy Beshear" height="682" width="1024" msid="111913084" hostid="261" sizebytes="30838"></div>As the governor of Kentucky, Beshear doesn't offer the same opportunity to turn a red state blue. He did, however, attract some attention after winning another term in deep-red Kentucky last year. Beshear also served as attorney general before his governorship, giving him an additional point of connection to Harris.<h2 id="8197c19e-ac3d-4c89-bb50-f3983069aca3">Gov. Josh Shapiro of Pennsylvania</h2><div type="image" title="Pennsylvania Gov. Josh Shapiro" height="683" width="911" msid="111913083" hostid="261" sizebytes="25878"></div>Shapiro has something that the White House sorely lacks at the moment: <a target="_blank" href="https://www.forbes.com/sites/saradorn/2024/07/04/kamala-harris-running-mate-heres-who-could-be-her-vp-if-she-replaces-biden/">good polling numbers</a>. A January poll found he had a higher approval rating than other recent Pennsylvania governors, with 59% approving of his performance. Pennsylvania is a key swing state, and Beshear's popularity could help tip the scales in Democrats' favor.<h2 id="b738f294-850a-4569-9622-0811a4974fe3">Sen. Mark Kelly of Arizona</h2><div type="image" title="Arizona Sen. Mark Kelly" height="714" width="952" msid="111913085" hostid="261" sizebytes="19792"></div>Kelly has defied expectations by winning two races in historically red Arizona: once in a special election for the Senate seat in 2020 and again in 2022, when a red wave was expected under the Biden administration.A Harris-Kelly ticket could be persuasive for a battleground state like Arizona, where Biden won with less than 11,000 votes.This story was originally published on July 9. It has been updated in light of Biden's announcement that he is withdrawing from the presidential race.

The names being floated as Kamala Harris' running mate now that Biden has dropped out

<ul class="summary-list"><li>Kamala Harris' allies are frustrated with chatter about potential Biden replacements, Politico reported.</li><li>The allies feel that Gavin Newsom and Gretchen Whitmer are being mentioned more than the VP.</li></ul>After President Joe Biden's widely panned debate performance against former President Donald Trump, Vice President Kamala Harris emerged as perhaps the president's most forceful advocate.Harris, who has enjoyed a strong governing relationship with Biden, is seen by many as <a target="_blank" href="https://www.businessinsider.com/biden-reelection-democrats-harris-newsom-whitmer-klobuchar-booker-cooper-moore-2024-2">a top successor</a> to the president should he exit the presidential race.But some of Harris' allies are frustrated that Democratic figures like California Gov. Gavin Newsom and Michigan Gov. Gretchen Whitmer are being touted more frequently than the vice president as potential Biden replacements in many circles, <a target="_blank" href="https://www.politico.com/news/2024/06/29/kamala-harris-biden-debate-response-00165895">according to Politico</a>."The fact that people keep coming back to this is so offensive to so many of us," an unnamed Harris ally told the publication. "They still don't get that the message you're saying to people, to this Democratic Party, is, we prefer a white person."Another ally told Politico: "If they think they are going to get through South Carolina bashing an effective and qualified Black woman vice president — their instincts are as bad as I thought they were."Harris ran for the 2020 Democratic presidential nomination, and there were high hopes for her campaign among many lawmakers and voters. But even after gaining <a target="_blank" href="https://www.businessinsider.com/kamala-spars-with-biden-calls-comments-race-personal-and-hurtful-2019-6">traction</a> following a primary debate where she skewered Biden over comments he made regarding his work with pro-segregationist lawmakers, her campaign faltered.Her eventual selection as Biden's running mate was praised by many Democrats — especially among Black voters in the party — which only strengthened after she was elected as vice president.Harris is also popular among young voters and she has become by far the administration's most prominent defender of reproductive rights following the Supreme Court's decision to overturn Roe v. Wade.But throughout much of her tenure, Harris has been dogged by low <a target="_blank" href="https://projects.fivethirtyeight.com/polls/approval/kamala-harris/">approval ratings</a> alongside Biden. During her first two years in office, the coronavirus and a 50-50 Senate largely kept her in Washington, as she was needed to break ties on important votes.And given her low numbers, some Democrats have expressed concerns that she might not be the party's best option should Biden decide not to continue with his campaign.

Kamala Harris' camp is mad that Newsom and Whitmer are being floated as Biden replacements over the VP

<ul class="summary-list"><li>Mark Cuban tore into Donald Trump's economic plans ahead of Trump's speech in the key state of Georgia.</li><li>The billionaire investor said Trump puts little thought into his proposals.</li></ul>Billionaire investor <a target="_blank" class="" href="https://www.businessinsider.com/mark-cuban-trump-call-200-percent-tariffs-john-deere-insane-2024-9">Mark Cuban</a> on Tuesday teed off on Donald Trump's proposal to cap credit card interest rates at 10% and the former president's broader economic agenda."Next, in the 'what the hell is he thinking list?' is the 10% price cap on credit card interest rates," Cuban said during a press call hosted by Vice President Kamala Harris' campaign.Cuban, long a Trump antagonist, tore into the former president ahead of Trump's scheduled economic address in Savannah, Georgia, later Tuesday afternoon. Cuban previously <a target="_blank" class="" href="https://www.businessinsider.com/mark-cuban-sees-new-democratic-party-under-kamala-harris-2024-8">endorsed Harris' candidacy</a> and has discussed ideas with her policy team."They have a whole policy team. I know when I've had conversations with them, you know, it's always gone back to, let's talk to the policy team responsible for healthcare, responsible for venture capital, responsible for startups — whatever it may be — and I get back a serious, well-studied response," Cuban said. "That's the antithesis of what Donald Trump is doing. He says things off the top of his head that tend to be ridiculous, if not insane."During a rally last week in New York, Trump floated the idea of temporarily capping credit card interest rates at "around 10%." He would need Congress to pass such a law, but it fits within his campaign's broader outreach to working-class voters."While working Americans catch up, we're going to put a temporary cap on credit-card interest rates," Trump said on Sept. 18. "We can't let them make 25% and 30%."Cuban pointed out that Trump's plan exceeds that of Sen. Bernie Sanders, who in May 2019 proposed capping credit card interest rates at 15% in legislation he worked on with Rep. Alexandria Ocasio-Cortez of New York."I mean, literally, Bernie Sanders suggested a cap of only 15%. So now you've got Donald Trump getting involved in price caps and price controls to a greater extent than self-described socialist Bernie Sanders," Cuban said. "And I think that just says so much about how far Donald has gone to his socialist and communistic tendencies, right? I know it sounds funny and a little bit out of whack, but it's true."In response, Trump's campaign said Cuban "has no idea what he is talking about.""If he actually looked at her failed record as vice president and listened to what she says, he would know her policies will destroy our country and the American dream for hardworking families," Trump campaign communications director Steven Cheung said in a statement to Business Insider.While Trump's suggestion caught some conservatives off guard, Sen. Josh Hawley of Missouri, a Republican, proposed an 18% cap last fall. The Wall Street Journal editorial board, often considered the voice of establishment Republicans, panned the idea as "a price control on credit.""Why do Messrs. Trump and Sanders think it's helpful to limit credit access and send folks to the pawn broker or leg breaker instead? Card companies might respond by raising fees, which is what happened to free checking after Democrats regulated debit swipe charges in 2010," the board wrote.Experts have said <a target="_blank" class="" href="https://www.cnn.com/2024/09/24/business/trump-credit-card-cap/index.html">credit card companies</a> would likely respond to an interest cap by making it harder for some people to access credit."There's no question that with a 10% rate cap, card issuers would put the clamps down on credit while they figure out how to continue making money in this new normal," Matt Schulz, chief credit analyst at LendingTree, told CNN.Interest rates are extremely lucrative for credit card companies. A 2023 Consumer Financial Protection Bureau report found that in 2022 credit card companies charged Americans $105 billion in interest and more than $25 billion in fees.Trump's campaign defended his proposal, pointing out that credit card debt is at a record high. According to the New York Federal Reserve, Americans have $1.14 trillion in credit card debt. The interest rates Americans pay on that debt are also higher now than they were before the COVID-19 pandemic."Under Kamala Harris, credit card debt is at an all-time high as wages have not kept up with the pace of inflation," Trump campaign national press secretary Karoline Leavitt said in a statement. "That's why President Trump has promised to cap interest rates at 10% to provide temporary and immediate relief for hardworking Americans who are struggling to make ends meet and cannot afford hefty interest payments on top of the skyrocketing costs of mortgages, rent, groceries and gas."

Mark Cuban mocks Trump for going even further than Bernie Sanders on capping credit card interest rates

<ul class="summary-list"><li>Forget buying a home on land — some people are heading for rivers and lakes instead.</li><li>They're investing in floating houses, houseboats, and narrowboats.</li></ul>Moving into their 360-square-foot <a target="_blank" href="https://www.businessinsider.com/floating-tiny-home-diy-alternate-living-slow-life-off-grid-2024-1">floating home</a> a year ago was a dream come true for Sarah Spiro and Brandon Jones.The house, located on Fontana Lake in North Carolina, has loft-style interiors with high ceilings and windows all around."I just love that no matter what you're doing, you can look out the window and have this super peaceful view — even if you're just doing dishes," Spiro, 27, told Business Insider.<div type="image" title="The couple built a floating home in the middle of a lake in North Carolina." height="1478" width="1971" msid="108758707" hostid="261" sizebytes="209268"></div>Spiro and Jones spent $90,000 building their floating home and say it would have been difficult to buy a house on land for that price. They pay a $5,000 annual mooring fee for their floating home.Now, they can't imagine returning to life on land."I guess it depends on the person, but for us, we would never go back," she said. "It beats living on land."<div type="image" title="A man and a woman taking a selfie while on a lake." height="977" width="1302" msid="108758708" hostid="261" sizebytes="152420"></div><h2>Embracing life on the water</h2>Living on water is big on social media, where it's spawned popular hashtags like <a target="_blank" href="https://www.instagram.com/explore/tags/houseboat">#houseboat</a> and <a target="_blank" href="https://www.instagram.com/explore/tags/narrowboatlife/">#narrowboatlife</a>, and helped push creators like Adam Lind of <a target="_blank" href="https://www.instagram.com/adam.floatinghome/">@adam.floatinghome</a> to extreme visibility.It's also a part of the alternate living movement that sees people choosing to stay in <a target="_blank" href="https://www.businessinsider.com/texas-tiny-home-renovation-old-shed-diy-before-after-photos-2022-6">tiny houses</a>, <a target="_blank" href="https://www.businessinsider.com/diy-renovation-tiny-home-pilot-airplane-truck-before-after-photos-2023-4">homes on wheels</a>, or <a target="_blank" href="https://www.businessinsider.com/shipping-container-tiny-house-with-suspension-bridge-2021-3">other forms of housing</a> over traditional brick-and-mortar homes.National data on the number of people who live in floating homes, houseboats, and narrowboats is hard to come by as there isn't a single authority responsible for tracking all these housing forms across the US.However, regional data suggests the lifestyle is still quite niche.In 2023, there were 70 floating home sales reported on the Regional Multiple Listing Service, or RMLS, which covers the Portland area and a significant part of northwest Oregon, <a target="_blank" href="https://portlandfloatinghomes.com/">Portland Floating Homes</a> real-estate broker John McPherson told BI.In the case of houseboats, US inventory is highest in the cities of Portland and Seattle, with an average of 47 and 23 monthly listings in 2023 respectively, per data provided by Realtor.com.The cities with the next highest houseboat listings are Scappoose, Oregon, Sausalito, California, and Johns Island, South Carolina — each had between five and 10 houseboat listings per month in 2023, per data from Realtor.com.<div type="image" title="A man and a woman posing next to their houseboat." height="2268" width="3024" msid="108758709" hostid="261" sizebytes="348022"></div>Comprehensive data on the trend abroad is similarly hard to find.The Canal &amp; River Trust, which looks after 2,000 miles of canals and rivers across England &amp; Wales, told BI there are about 34,760 boats along its waterways. Of those, 21% describe themselves as "liveaboard."<h2>A punishing housing market is driving people to alternatives</h2>Elizabeth Earle lives in a narrowboat that she bought for £35,000, or about $44,000, in 2022. She <a target="_blank" href="https://www.businessinsider.com/i-live-on-a-houseboat-in-england-elizabeth-earle-narrowboat-2023-3">previously told</a> BI's Jordan Pandy that the lifestyle was the least expensive way for her to buy a home in the UK."The price for a house in England is a bit ridiculous at the moment," Earle, 34, said. "Even if you're able to save £200 a month, how on earth are you going to save £20,000 towards a mortgage? It feels so unattainable compared to how our parents did it."<div type="image" title="A woman onboard a narrowboat in England" height="1152" width="1536" msid="108758710" hostid="261" sizebytes="185390"></div>Earle's comments echo true across much of her generation around the world.<a target="_blank" href="https://www.businessinsider.com/boomer-millennials-debt-financial-security-interest-rates-recession-savings-2023-11">Millennials</a> are <a target="_blank" href="https://www.businessinsider.com/personal-finance/millennials-debt-stressed-generation-2019-10">saddled with debt,</a> struggling to build up their <a target="_blank" href="https://www.businessinsider.com/millennials-saving-habits-less-wealth-versus-boomers-2020-2">net worths</a>, and getting <a target="_blank" href="https://www.businessinsider.com/millennials-priced-out-of-cities-into-suburbs-housing-crisis-2024-1">priced out of cities.</a> Some are <a target="_blank" href="https://www.businessinsider.com/millennials-living-with-parents-save-money-inflation-recession-12">moving in with their parents</a> because they can't afford to live on their own.Houses are also <a target="_blank" href="https://www.nar.realtor/infographics/existing-home-sales-housing-snapshot">getting more expensive</a>. In the US, most major forecasts predict that <a target="_blank" href="https://www.businessinsider.com/personal-finance/home-prices-drop">home prices could rise</a> between 1.4% and 4.1% in 2024.And while millennials might be suffering the most in the real-estate market, people of all ages are among those seeking out a life on the water."What I have observed is that a lot of buyers seem to be in their 40s, 50s, or 60s. Some are in their 70s," McPherson said.It's often people who are downsizing and want to do something specifically for themselves now that they're older — which is enjoy the river, the views, and boating, he added."Housing has become increasingly unaffordable for many Americans because of historic high prices coupled with mortgage rates approaching 8%," Daryl Fairweather, Redfin's chief economist, told BI. "This is mainly due to the intense housing supply shortage in the US — we're short millions of homes, which is driving up costs."A recent <a target="_blank" href="https://www.realtor.com/research/2023-spring-buyers-survey/">survey</a> by Realtor.com also found that more than half of potential home buyers were second-guessing their plans to buy a home, Hannah Jones, a senior economic research analyst at Realtor.com, told BI."The relatively high barrier to homeownership may push would-be buyers towards renting for longer or seeking out <a target="_blank" href="https://www.realtor.com/research/family-affair-survey-aug-2023/">alternative living arrangements</a> to save money for a home purchase," Jones said.<div type="image" title="A woman posing on a floating platform during the construction of a floating home." height="1536" width="2048" msid="108758711" hostid="261" sizebytes="345470"></div><h2>Hidden costs</h2>But if slashing expenses is the goal, life on the water might not be the answer."I wouldn't say that owning a floating house is much cheaper than owning a typical house on land, but it is a much lower-priced alternative to owning waterfront property in Portland," McPherson said.Home insurance for a floating house tends to be about double what it is for a regular house on land, McPherson said. Most floating-home owners also have to pay a monthly fee to either rent or maintain the slip their house is in.Additionally, the float — the part of the floating house that's equivalent to a foundation — deteriorates over time, McPherson said."Depending on what needs to be done, maintenance could cost around $10,000 or so," McPherson said. If a float is too old, it needs to be replaced — and it's not a do-it-yourself kind of job."Currently, to replace a float it could cost approximately $80,000 to $130,000 — or even more, depending on the size of the house and what exactly needs to be done," he said.Laura Woodley, 35, took out a loan to buy a narrowboat in the UK in 2020. Her repayments cost about £650, or $810, a month.<div type="image" title="Laura Woodley sitting on her narrowboat." height="3000" width="4000" msid="108758712" hostid="261" sizebytes="431804"></div>"Many people think that I'm living on a boat to save money, but I actually spend more than I did when I was renting, although I now live alone instead of with roommates," Woodley <a target="_blank" href="https://www.businessinsider.com/living-narrow-boat-canal-london-lifestyle-struggles-2023-9">previously told</a> BI.A boat license, heating expenses, and maintenance costs add up to roughly another £425 a month — and that's without emergency payments."A couple of winters ago, half of my chimney fell off, and my heating broke, and I had to pay £700 to fix it," Woodley said. "Living on a narrowboat is not as simple as having a set of fixed monthly expenses like you would if you lived in a house."<h2>Value in the lifestyle and the community</h2>Money aside, the lifestyle has perks.<div type="image" title="A row of floating homes and houseboats." height="1536" width="2048" msid="108758713" hostid="261" sizebytes="197498"></div>"It's a very serene and calm way of life compared to downtown," Kate Fincham, 35, <a target="_blank" href="https://www.businessinsider.com/millennial-woman-houseboat-alternate-living-water-slow-life-toronto-2024-1">told BI</a>. Her houseboat is moored in Bluffers Park Marina, about 30 minutes from downtown Toronto."There are lots of woodlands and trails by the water, and two beaches as well," Fincham added. She spends her summer mornings kayaking on the lake.<div type="image" title="A bird standing on a dock next to a houseboat." height="2202" width="2936" msid="108758715" hostid="261" sizebytes="685992"></div>Lily Rose, 32, <a target="_blank" href="https://www.instagram.com/aboardandante/">lives on a houseboat</a> on Lake Union in Seattle with her husband Dylan."Having ducklings and goslings pay us visits in the late spring and early summer months has been a big highlight of our time on the houseboat," Rose said."We enjoy taking our paddleboards out for a quick lunch break during the week or cruising down to the south end of Lake Union in our little 11-foot Boston Whaler to watch the Duck Dodge sailboat races in the summer," Rose added.<div type="image" title="The couple have direct lake access from their houseboat." height="2102" width="2803" msid="108758716" hostid="261" sizebytes="327520"></div>For Fincham, there's value in the community and freedom she's found through the houseboat lifestyle."I think it's always kind of inspiring for people to think, 'Oh, I don't have to save up to buy a condo,' or whatever. There are alternate avenues and ways to live, too," Fincham said.<div type="image" title="A woman standing in front of a houseboat during winter." height="1497" width="1536" msid="108758718" hostid="261" sizebytes="437600"></div>Houseboat life has helped her bond with her neighbors."The neighbors, we're all very close, and there are always activities and game nights, movie nights, or people going for dinner together," she said. When she lived in a house downtown, she barely knew the people who lived around her."You need to be able to roll with the punches," Fincham said. "Sometimes it's not the easiest way of life, but I always think, for me, it's the best way of life."

They moved into floating homes and houseboats — and discovered a world of adventure and hidden expenses

<ul class="summary-list"><li>Jerome Powell reiterated Wednesday that the Federal Reserve would cut interest rates this year.</li><li>The Fed says it wants inflation to cool more but doesn't need it to hit its 2% target to cut rates.</li></ul>Fed Chair Jerome Powell on Wednesday silenced the growing chorus of forecasters <a href="https://www.businessinsider.com/recession-outlook-fed-interest-rate-cuts-wall-street-markets-investors-2024-2" target="_blank" rel="noopener">questioning the prospect of rate cuts</a> this year.He said the central bank was still on pace to lower interest rates in 2024 but waiting to see more data and a continued cooling of inflation before doing so."We will carefully assess the incoming data, the evolving outlook, and the balance of risks," Powell said during a Q&amp;A with the House Financial Services Committee. "The committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%."The S&amp;P 500 reached intraday highs on Powell's remarks and closed up roughly 0.5% on the day.Powell did say that inflation didn't have to fall all the way to 2% before the central bank would cut rates."That's not what we're looking for," he said. "What we want is more evidence that will give us more confidence that inflation is on the path down to 2%, sustainably."Powell added that the "good" inflation readings the Fed expected didn't have to be better than previous data but that there needed to be more of them. That means all eyes are on the <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-february-cpi-inflation-report-next-big-selloff-2024-3">next consumer-price-index print</a>, set for Tuesday."We don't want a situation where the six months of good inflation data we had last year that, that didn't turn out to be an accurate signal of where underlying inflation is," he said.Powell's remarks contrast with some of the more bearish takes that have recently seeped into Wall Street chatter. Experts such as <a href="https://www.businessinsider.com/fed-rate-cut-forecast-us-economy-outlook-inflation-torsten-slok-2024-3?mrfhud=true">Torsten Slok</a> have forecast <a href="https://www.businessinsider.com/fed-first-rate-cut-forecast-us-economy-high-interest-impact-2024-2">no rate cuts</a> may arrive in 2024. Some have even floated the <a href="https://www.businessinsider.com/economic-outlook-fed-interest-rate-hikes-cuts-larry-summers-recession-2024-2">possibility of a rate hike</a>.

The Fed insists it will cut rates this year

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Happy Valentine's Day! Don't worry about trying to grab a last-minute dinner reservation. Wow that special someone with <a target="_blank" href="https://www.businessinsider.com/fancy-date-night-slow-cooker-meals">an easy but delicious homemade meal.</a>In today's big story, we're looking at what a hotter-than-expected inflation report means for <a target="_blank" rel="noopener" href="https://markets.businessinsider.com/news/stocks/inflation-data-cpi-stock-market-federal-reserve-rate-cuts-outlook-2024-2">markets and the econom</a><a target="_blank" href="https://markets.businessinsider.com/news/stocks/inflation-data-cpi-stock-market-federal-reserve-rate-cuts-outlook-2024-2">y.</a>What's on deck:<ul><li>Markets: The stock market has been very kind to <a target="_blank" href="https://www.businessinsider.com/millennials-gen-z-stock-market-baby-boomers-wealth-investing-2024-2">millennials' portfolios in recent years</a>.</li><li>Tech: Target is cracking down <a target="_blank" href="https://www.businessinsider.com/target-self-checkout-closes-early-8-pm-some-stores-2024-2">on self-checkout lanes</a>.</li><li>Business: Instead of a housing bubble, maybe <a target="_blank" href="https://www.businessinsider.com/housing-market-bubble-home-prices-stay-high-crash-real-estate-2024-2">high home prices are just here to stay</a>.</li></ul>But first, guess what's back.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h2>The big story</h2><h3>Inflation issues</h3><div type="image" title="The stock market." height="1000" width="2000" msid="107698097" hostid="261" sizebytes="115196"></div>“Just when I thought I was out, <a target="_blank" href="https://www.youtube.com/watch?v=UPw-3e_pzqU">they pull me back in</a>.”Inflation reared its ugly head again with a <a target="_blank" href="https://www.businessinsider.com/inflation-cpi-consumer-price-index-january-housing-food-energy-prices-2024-2">hotter-than-expected report on Tuesday</a>. The consumer price index rose 3.1% year over year in January and was up 0.3% from the previous month, writes Business Insider’s Madison Hoff. Forecasters had been expecting increases of 2.9% and 0.2%, respectively. The market didn’t take kindly to the hot report. <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-hot-inflation-cpi-data-federal-reserve-2024-2">US stocks tumbled early Tuesday and never recovered</a>, with the S&amp;P 500 closing 1.37% lower and the Dow Jones Industrial Average dropping 1.35%. Some analysts were quick to <a target="_blank" href="https://markets.businessinsider.com/news/stocks/inflation-data-cpi-stock-market-federal-reserve-rate-cuts-outlook-2024-2">suggest investors are “overreacting,”</a> BI’s Aruni Soni reports. They pointed out that housing accounted for a big part of the January bump and flagged that there's still a larger narrative of inflation cooling.That silver lining doesn’t address the elephant in the room: What does the latest CPI data mean for interest rates?<div type="image" title="A graph showing consumer price index inflation." height="1092" width="1294" msid="107698100" hostid="261" sizebytes="43666"></div>The hot inflation report comes just a few weeks after some industry experts felt <a target="_blank" href="https://www.businessinsider.com/goldilocks-economy-interest-rate-cuts-federal-reserve-2024-2">the market was in a perfect position</a>.But hopes of a Goldilocks economy — where growth remains high while inflation and unemployment stay low — have dimmed. Instead, we’ve reentered the never-ending economic purgatory of: “Can the Fed pull off a soft landing?”Fed Chair <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-fed-chair-powell-march-rate-cuts-2024-2">Jerome Powell had already signaled</a> the central bank likely won't cut interest rates in March, but Tuesday's CPI flare-up could lead to it kicking the can even further down the road.Stubbornly elevated inflation means Powell might be less willing to cut rates and risk further fueling inflation. But keeping rates high, especially when so many expected relief early this year, is playing with fire. The US could fall into a recession this year if the needle isn’t perfectly threaded.Rates staying elevated for longer <a target="_blank" href="https://markets.businessinsider.com/news/stocks/federal-reserve-interest-rate-cuts-stock-market-outlook-investing-bofa-2024-2">doesn’t necessarily spell disaster for stocks</a>, according to Bank of America. Large-cap US companies with lots of cash on hand could earn significant interest.But not everyone is as lucky, as <a target="_blank" rel="noopener" href="https://www.businessinsider.com/corporate-borrowers-stress-despite-otherwise-strong-economy-cpi-rate-cuts-2024-2">corporate borrowers are “pockets of stress,”</a> according to Apollo Global Management co-president Jim Zelter.It’s particularly painful for smaller companies, which tend to carry floating-rate debt more susceptible to elevated interest rates.Maybe that’s <a target="_blank" href="https://www.businessinsider.com/us-economy-small-business-sentiment-labor-costs-inflation-recession-2024-2">why small business owners’ confidence levels are dropping</a>, with many citing inflation as their main concern, writes BI’s Yuheng Zhan.<h2>3 things in markets</h2><div type="image" title="Photo collage of an image of money (left), and a cell phone (right)." height="500" width="1000" msid="107698103" hostid="261" sizebytes="90074"></div><ol><li>It’s been a good five years for millennial investors. Americans aged 18 to 40 — mostly millennials — <a target="_blank" href="https://www.businessinsider.com/millennials-gen-z-stock-market-baby-boomers-wealth-investing-2024-2">enjoyed an 80% surge in their wealth</a> from early 2019 to late 2023. That was well above the net-worth growth for those over 40, per data from the Federal Reserve Bank of New York.</li><li>A reorg at BlackRock. The world’s largest money manager is <a target="_blank" href="https://www.businessinsider.com/blackrock-reorganizes-financial-strategic-investors-group-2024-2">shaking up its Financial and Strategic Investors Group</a>, which advises big clients like sovereign wealth funds, insurers, and central banks. It’s part of a bid to turn the group into "the most trusted advisor to financial institutions in our industry," according to an internal memo seen by BI.</li><li>It looks like Peter Thiel timed the crypto market perfectly. The billionaire’s Founders Fund <a target="_blank" href="https://markets.businessinsider.com/news/currencies/bitcoin-ether-peter-thiel-founders-fund-crypto-investing-strategy-vc-2024-2">invested $200 million in bitcoin and ether</a> between late summer and early fall last year, Reuters reported. Since the end of June, bitcoin has jumped over 60% and ether is up more than 30%.</li></ol><h2>3 things in tech</h2><div type="image" title="Nvidia CEO Jensen Huang." height="1331" width="2000" msid="107698105" hostid="261" sizebytes="131400"></div><ol><li>Sam Altman’s $7 trillion chip dreams are off the mark, Nvidia’s CEO says. Jensen Huang questioned Altman's <a target="_blank" href="https://www.businessinsider.com/sam-altman-7-trillion-chip-dreams-off-mark-nvidia-ceo-2024-2">attempts to raise up to $7 trillion</a> to boost GPU chip supply. Building AI data centers won't cost anywhere near that much, he said at a summit in Dubai.</li><li>Some people are already returning their Apple Vision Pros. Customers said the headset's design, blurry screen, and lack of use cases <a target="_blank" href="https://www.businessinsider.com/apple-vision-pro-buyers-returning-headsets-design-blurry-screen-price-2024-2">don't justify its $3,500 price tag</a>. One big critic: <a target="_blank" rel="noopener" href="https://www.businessinsider.com/mark-zuckerberg-rips-apple-vision-pro-2024-2">Mark Zuckerberg</a>.</li><li>Jeff Bezos' move to Miami shows just how hard it is to tax the rich. Since leaving his longtime home of Washington, Bezos has started unloading billions of dollars worth of Amazon stock. And thanks to his new address, Bezos could <a target="_blank" href="https://www.businessinsider.com/jeff-bezos-miami-move-shows-challenges-taxing-rich-2024-2">save hundreds of millions of dollars in state taxes</a> this year.</li></ol><h2>3 things in business</h2><div type="image" title="An illustration of colorful homes rising incrementally, as if part of a bar graph." height="1000" width="2000" msid="107698108" hostid="261" sizebytes="130870"></div><ol><li>Sky-high home prices are here to stay. Since home prices began to climb in 2020, doomsayers have warned of a looming housing crisis. But barring a large-scale economic disaster, it doesn't look like <a target="_blank" rel="noopener" href="https://www.businessinsider.com/housing-market-bubble-home-prices-stay-high-crash-real-estate-2024-2">the bubble will pop anytime soon</a>.</li><li>Brace yourselves, self-checkout fans. Target is <a target="_blank" href="https://www.businessinsider.com/target-self-checkout-closes-early-8-pm-some-stores-2024-2">limiting the hours you can use its self-checkout lanes</a> in some stores. Employees told BI that staffing levels and sales volumes are key factors in the decision.</li><li>Government jobs are the ultimate anti-layoff “hack.” Recent waves of layoffs have made Gen Z disillusioned with corporate work. Some TikTokers <a target="_blank" href="https://www.businessinsider.com/gen-z-avoiding-layoffs-want-public-sector-goverment-jobs-2024-2">are now hyping up the public sector</a>, drawn to its solid benefits, early retirement, and student loan forgiveness plans.</li></ol><h2>In other news</h2><ul><li><a target="_blank" href="https://www.businessinsider.com/phoenix-open-waste-management-golf-drunk-bros-party-2024-2">Nine hours at the most unhinged hole in golf</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/house-republicans-impeach-mayorkas-150-years-vote-2-2024">House Republicans have impeached the first Cabinet secretary in almost 150 years</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/democrat-tom-suozzi-wins-new-york-special-election-2024-2">Democrat Tom Suozzi wins New York special election, flips Santos' old seat</a>.</li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/lyft-typo-projected-profit-10x-better-than-it-really-is-2024-2">Nightmare on Wall Street: A Lyft typo projected profit to be 10x better than it really is</a>.</li></ul><h2>What's happening today</h2><ul><li>Today's earnings: Cisco Systems, Sony, and other companies <a target="_blank" href="https://markets.businessinsider.com/earnings-calendar">are reporting</a>.</li><li>Mercedes-AMG and McLaren are set to launch their 2024 F1 cars.</li></ul>The Insider Today team: <a target="_blank" href="https://www.businessinsider.com/author/dan-defrancesco">Dan DeFrancesco</a>, deputy editor and anchor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/hallam-bullock">Hallam Bullock</a>, editor, in London. <a target="_blank" href="https://www.businessinsider.com/author/jordan-parker-erb">Jordan Parker Erb</a>, editor, in New York. <a target="_blank" href="https://www.businessinsider.com/author/george-glover">George Glover</a>, reporter, in London.

What the latest inflation data means for interest rates

<ul class="summary-list"><li>Rising US corporate bankruptcies are due to Fed rate hikes, Apollo chief economist said.</li><li>Higher rates have increased borrowing costs, pressuring companies with high levels of debt.</li></ul>Bankruptcies are surging this year and on track to outstrip 2020, potentially setting up 2023 to be the worst year for corporate bankruptcies in over a decade.Last month saw 62 filings, bringing the year-to-date total to 516, <a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-corporate-bankruptcies-pick-up-speed-in-september-with-62-new-filings-77765327" target="_blank" rel="noopener">according to S&amp;P Global</a>. That's more than in all of 2021 or 2022 and nearly as much as the 518 filings in the first three quarters of 2020, when the pandemic roiled the economy.For all of 2020, there were 639 filings, the most since since 2010, when 827 companies filed for bankruptcy protection."The September data for bankruptcy filings are out, and more and more companies are going bankrupt because of Fed hikes," said <a href="https://apolloacademy.com/bankruptcies-rising-because-of-fed-hikes/" target="_blank" rel="noopener">Apollo chief economist Torsten Sløk</a> in a note on Friday.The Fed has raised rates 11 times since March 2022 in an effort to bring inflation down to the central bank's 2% target.While inflation has indeed cooled sharply, Fed rate hikes also mean businesses have to pay <a href="https://markets.businessinsider.com/news/stocks/debt-wall-corporate-bankruptcy-leverage-liquiditiy-refinance-interest-rate-stocks-2023-6">more in borrowing costs</a> because they owe more money on any floating-interest debt they have, and on any debt they refinance. "Bankruptcies are hitting companies with high levels of debt and low earnings in the Consumer discretionary, Healthcare, and Industrials sectors," Sløk added.<div type="image" title="2023 bankruptcy filings by sector" height="746" width="1342" msid="104408320" hostid="261" sizebytes="17640"></div>SmileDirectClub Inc., an oral-care company, led the way for the third quarter's biggest bankruptcy with more than $1 billion in liabilities, according to S&amp;P Global.Some of the other headline bankruptcies this year have included the collapse of Yellow, Bed Bath &amp; Beyond, and Silicon Valley Bank.According to experts, a <a href="https://markets.businessinsider.com/news/bonds/us-corporate-debt-recession-outlook-defaults-bonds-bankruptcies-rates-fed-2023-10">rising wave of bankruptcies and debt defaults</a> could risk rocking the economy towards a recession.

Bankruptcies are surging - and Fed rate hikes are to blame, economist says

<ul><li>The Reserve Bank of India (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) has made no bones about it being averse to <keyword id="2721952" type="General" weightage="80" keywordseo="crypto" source="Orion">crypto</keyword> currency.</li><li>RBI Governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> has, in fact, sought an outright ban on it, while making his views clear on it at several platforms in the last two years.</li></ul>The Reserve Bank of India (RBI) has made no bones about it being averse to crypto currency, ever since it emerged on the horizon in the country a few years ago. RBI Governor Shaktikanta Das has, in fact, sought an outright ban on it, while making his views clear on it at several platforms in the last two years. "Crypto should be banned, given its no underlying value in the market. Just like every asset, every financial product comes with some underlying value, hence the value of crypto is totally based on the make-believe factor," he had said in January this year during a media event. "Crypto is a form of gambling without any underlying value and is nothing but a 100 per cent speculation world," he had said in the same event, while seeking a ban on it. If crypto is allowed in India, the RBI may likely fail in monitoring the transactions, Das has said. The RBI governor has gone on to say that crypto masquerading as a financial asset is a completely misplaced argument. Calling crypto as a form of gambling, Das has said that gambling is not promoted in India and if people still want to indulge in it, then there is a need to draw proper rules for it, while calling for an outright ban on it. He has said that crypto products need to be looked at and, going forward, the effort is to develop an international framework, an international architecture to deal with this problem. What's happening to the <keyword id="6791630" type="General" weightage="80" keywordseo="cbdc" source="Orion">CBDC</keyword>? Although the RBI has vehemently opposed cryptocurrency, its own Central Bank Digital Currency (CBDC), which had been launched as a pilot project on December 1, 2022, for retail use, is ready to target one million users by the end of this month. This was informed by the RBI on Thursday during the post repo rate announcement press conference. While it has no specific date in mind for a full-fledged launch of the CBDC, the central bank will take a measured approach, it said. The RBI also has plans to make the united payments interface (UPI) platform fully interoperable with the CBDC. "We are not targetting a specific date, it will be a calibrated approach," T. Rabi Sankar, deputy governor, RBI had said on June 8. "We want to assess the impact and learn as we go. By the end of June, we are targeting 1 million CBDC users. We are also planning to make UPI QR code interoperable with CBDC," he added. The matter of banning Crypto As far as completely banning cryptocurrencies, back in July 2022, <keyword id="25455" type="General" weightage="50" keywordseo="finance" source="Orion">Finance</keyword> Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> had said that a stand could be taken only after considerable international collaboration on the risks, benefits, evolution of a common taxonomy and standards. "Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards," Sitharaman had told Parliament in a reply. Earlier this year, though, during the meeting of the G20 finance ministers central bank governors (FMCBG) held in Bengaluru in February, it was decided that once the International Monetary Fund (IMF) and the Financial Stability Board (FSB) formulate a technical paper in a bid to attain a coordinated global approach for the regulation of crypto assets as proposed by the Indian presidency of the G20, it will form the basis for future discussions to develop an international architecture. Sitharaman had said after the FMCBG meeting that cryptocurrency regulation was discussed by a panel on February 23, 2023 and would again come up during the meeting scheduled in July 2023. A synthesis of the two studies -- by IMF and FSB -- would be considered in September this year, which will lead towards creation of a global policy approach on this matter (regulation of cryptocurrency), she had informed.

RBI gets set to float it's digital currency -- check details here

<ul class="summary-list"><li>US stocks closed higher Tuesday following optimistic comments from Fed officials. </li><li>Fed Governor Christopher Waller expressed optimism that the central bank is on track to quell inflation. </li></ul>US stocks traded higher Tuesday following upbeat comments from Federal Reserve officials that boosted hopes the central bank had reached the end of its rate hike cycle. Markets digested comments from a slew of Fed speakers throughout the day, with indexes rising to close with a gain as the session neared the close. In prepared remarks given in Washington DC, Fed Governor Christopher Waller said consumer prices look on track to fall to the central bank's target, which signals that interest rate cuts could be coming sooner than later. "While I am encouraged by the early signs of moderating economic activity in the fourth quarter based on the data in hand, inflation is still too high, and it is too early to say whether the slowing we are seeing will be sustained," Waller said. "But I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent."Meanwhile, US consumer confidence data out Tuesday showed that sentiment improved marginally in November compared to the prior month. Most respondents still see a recession on the horizon, but the Conference Board's Index nonetheless climbed to 102, above October's revised 99.1 reading.Here's where US indexes stood as the market closed at 4:00.m. on Tuesday: <ul><li><a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 4,554.89, up 0.1%</li></ul><ul><li><a href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 35,416.98, up 0.24% (+83.51 points)</li></ul><ul><li><a href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq Composite</a>: 14,281.76, up 0.29%</li></ul>Here's what else is going on: <ul><li>Why China's weak economy is <a href="https://www.businessinsider.com/china-economy-us-stock-market-outlook-foreign-investment-taiwan-inflation-2023-11">good news for the US stock market</a>.</li><li>The S&amp;P 500 will <a href="https://www.businessinsider.com/stock-market-outlook-recession-wont-knock-down-sp500-next-year-2023-11">jump 12% to new records next year</a>, according to BMO.</li><li>A Russian oil ship has been floating 1,600 miles off the shore of India for over a week as officials mull <a href="https://www.businessinsider.com/russian-oil-tanker-india-crude-price-cap-sanctions-west-trade-2023-11">whether to let the sanctioned tanker dock</a>.</li><li>An investment research firm said <a href="https://www.businessinsider.com/stock-market-crash-sp500-prediction-recession-2024-us-economy-outlook-2023-11">the stock market could plunge 27%</a> as a recession sets in.</li><li><a href="https://www.businessinsider.com/israel-hamas-war-israeli-economy-central-bank-forecast-conflict-finance-2023-11">Israel's war with Hamas will cost $53 billion</a>, the Israeli central bank said.</li><li>The US dollar has tumbled in November while <a href="https://www.businessinsider.com/dollar-outlook-usd-euro-rally-markets-investors-currency-fed-rates-2023-11">the euro has strengthened</a>.</li><li>Deutsche Bank predicts the S&amp;P 500 to reach a <a href="https://www.businessinsider.com/stock-market-outlook-all-time-high-sp-500-deutsche-bank-2023-11?_gl=1*g73eg7*_ga*MjA5NTAyMzYyOS4xNjYyNDcwMDc5*_ga_E21CV80ZCZ*MTcwMTE4MTM2OC4xNDMyLjAuMTcwMTE4MTM3NC41NC4wLjA.">record 5,100 in 2024</a>.</li><li>Russia's<a href="https://www.businessinsider.com/dedollarization-russia-fraught-india-rupee-oil-trade-warning-us-dollar-2023-11"> fraught rupee oil trade</a> marks a warning for countries looking to abandon the dollar.</li><li>Wells Fargo said stocks are likely going to be <a href="https://www.businessinsider.com/stock-market-outlook-2024-federal-reserve-interest-rates-wells-fargo-2023-11">weighed down by high interest rates </a>next year.</li></ul>In commodities, bonds, and crypto: <ul><li>Oil prices climbed, with<a href="https://markets.businessinsider.com/commodities/oil-price?type=wti"> West Texas Intermediate</a> up 2.08% to $76.42 a barrel. <a href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, moved higher 2.14% to $81.70 a barrel.</li><li><a href="https://markets.businessinsider.com/commodities/gold-price?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Gold</a> edged higher 1.44% to $2,041.10 per ounce.</li><li>The<a href="https://markets.businessinsider.com/rates/u-s--rates-10-years?utm_medium=ingest&amp;utm_source=markets"> 10-year yield</a> moved lower four basis points to at 4.344%.</li><li><a href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets">Bitcoin</a> climbed 3.31% to $38,102.</li></ul>

US stocks rise as Fed comments fuel hopes rate hikes are done

<ul class="summary-list"><li>The Fed's hiking cycle has made dollar credit more expensive and scarcer, the Atlantic Council wrote.</li><li>China's yuan has benefited the most, given that its borrowing costs are considerably lower.</li></ul>The Federal Reserve shares some responsibility for fueling the de-dollarization trend, according to the <a href="https://www.atlanticcouncil.org/blogs/econographics/dedollarization-is-not-just-geopolitics-economic-fundamentals-matter/">Atlantic Council.</a>Though global efforts to wean off the greenback are often framed as a political move to erode US dominance of the financial order, too much focus on this can overshadow economic fundamentals that also play a role. "Rate hikes by the US Federal Reserve, which coincidentally began to take full effect in the months after Russia's invasion of Ukraine, have caused borrowing in dollars to become more expensive and scarcer, encouraging emerging market firms to seek dollar alternatives—namely the RMB," authors Niels Graham and Hung Tran wrote.Of course, some of the shifts away from the greenback are <a href="https://www.businessinsider.com/dedollarization-russia-fraught-india-rupee-oil-trade-warning-us-dollar-2023-11">geopolitically motivated</a>, the think tank acknowledged. Most of it is in response to Western sanctions against Russia that froze Moscow's currency reserves and largely shut it out of the global financial system.Other countries who fear similar restrictions, such as China, have been among the biggest proponents of de-dollarization.But even if the West had not curbed Russia's finances, emerging markets would still have reason to turn away from the dollar, according to the Atlantic Council.For the first time in two decades, it has become considerably cheaper to pursue short-term borrowing in yuan than in the greenback, it said. That's due to the Fed's steep hiking cycle, which brought interest rates from near-zero levels in 2022 to a range of 5.25%-5.50% in 2023.Meanwhile, China's muted inflation allowed it to keep its rates largely unchanged, pushing international firms to take advantage of cheaper, yuan-denominated debt. The Fed rate hikes also sparked dollar appreciation, with the greenback remaining roughly 10% above its pre-2022 average. Russia's war only compounded this, as many turned to the dollar as a safe haven asset. But this has meant that dollar availability became severely restricted, causing borrowers that rely on short-term greenback funding to see a decline in credit, the researchers said. "Without abundant dollar financing alternatives, such as during the 2008 financial crisis, the impact of this would have subdued global trade. However, following concerted efforts by Beijing to <a href="https://www.bruegel.org/policy-brief/third-time-lucky-chinas-push-internationalise-renminbi" target="_blank" rel="noopener">promote RMB-denominated lending</a>, firms seeking short-term finance can now turn to RMB lenders or RMB-denominated debt markets," the Atlantic Council wrote.This adoption means that global firms are more willing to adapt to China's emerging global finance infrastructure, and the use of Beijing's Cross-Border Interbank Payment System has grown rapidly.This alternative to the SWIFT system tends to see substantial spikes when dollar availability becomes constrained, the think tank said.Though the Fed is likely to start its rate cutting cycle this year, the ultra-low interest rates that triggered dollar cost advantages aren't coming back.To be sure, the yuan isn't an ideal currency for international use, given that it's not a<a href="https://markets.businessinsider.com/news/currencies/chamath-palihapitiya-de-dollarization-dollar-vs-yuan-china-renminbi-nothingburger-2023-4"> free-floating tender</a>, the researchers noted."Even so, in the coming year macroeconomic trends will likely continue to push emerging market firms towards RMB-denominated debt for trade financing in particular, amplifying the use of the RMB in international trade."

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