News
CNN: Money | ECB raises rates to combat inflation
In a widely expected move Thursday, the European Central Bank raised interest rates for the first time since 2008, in its fight against rising energy and food prices. The ECB's key interest rate is now 1.25%, up from 1% previously.
MSNBC | European Central Bank urged Portugal to seek economic aid
Central bank raises key rate less than 24 hours after Portugal says will ask for help.
Bloomberg | Portugal Set to Start Talks on Bailout as Spain Threat Eases
Portugal is set to start hammering out a bailout package that may total 75 billion euros ($107 billion) as it becomes the third euro-region country to seek European Union aid.
RCM | Spain vows won't be next after Portugal seeks aid
Spain vowed on Thursday it would not follow ailing neighbor Portugal in seeking a European bailout, and a successful Spanish bond auction suggested markets do not immediately fear contagion.
CNBC | US Going Same Route as Greece, Portugal: Economist
To me being in Europe for a few days the plot in Greece and Portugal sounds an awful lot like the same plot that’s going on in the United States. But the characters have different names.
Econ Comments
Minyanville | What to Do When Inflation Comes Knocking
From the local coffee shop to the Federal Reserve, its post-recession comeback has been much feared. Anyone who lived through the astronomical price jumps of the 1970s will likely tell you those concerns are well-founded.
WSJ | The Fed Should Consider a 'Bad Bank'
Inflation is coming. One way to contain it is to take excess Fed assets off the table so they can't finance further easing.
Blogs
WSJ: Real Time Economics | Fed Would Stay Open Amid Government Shutdown
As the battle over the U.S. budget threatens to leave the government without money starting from Friday, there’s at least one key agency that would not be affected: the Federal Reserve. But its job may be complicated if other parts of the government close.
The Economist: Free exchange | Portugal prepares for a bail-out
Portugal, facing years of austerity and low growth, may not be inclined to join in the general rejoicing. Spain, lacking the firewall that Portugal had previously provided, could be feeling distinctly uneasy.
