Tag: United States Economy

World Bank Projects Weak Global Growth Amid Rising Interest Rates

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The World Bank said on Tuesday that the global economy remained in a “precarious state” and warned of sluggish growth this year and next as rising interest rates slow consumer spending and business investment, and threaten the stability of the financial system. The bank’s tepid forecasts in its latest Global Economic Prospects report highlight the predicament that global policymakers face as they try to corral stubborn inflation by raising interest rates while grappling with the aftermath of the pandemic and continuing supply chain disruptions stemming from the war in Ukraine.…

Yellen to Call for ‘Constructive’ China Relationship

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WASHINGTON — Treasury Secretary Janet L. Yellen on Thursday will call for a “constructive” and “healthy” economic relationship between the United States and China, one in which the two nations work together to confront challenges like climate change, according to excerpts from prepared remarks. Ms. Yellen’s comments, which she will deliver at Johns Hopkins University’s School of Advanced International Studies, will strike a notably positive tone about the U.S.-China relationship following months of heightened tensions between the two nations, which have the world’s largest economies. Ms. Yellen is expected to…

What is in the CHIPS Act, Aimed at Childcare Expansion and National Security

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The Biden administration unveiled new rules Tuesday for its “Chips for America” program to build up semiconductor research and manufacturing in the United States, beginning a new rush toward federal funding in the sector. The Commerce Department has $50 billion to hand out in the form of direct funding, federal loans and loan guarantees. It represents one of the largest federal investments in a single industry in decades and highlights deepening concern in Washington about America’s dependence on foreign chips. Given the huge cost of building highly advanced semiconductor facilities,…

Plans in Congress on China and TikTok Face Hurdles After Spy Balloon Furor

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WASHINGTON — Republicans and Democrats are pressing for major legislation to counter rising threats from China, but mere weeks into the new Congress, a bipartisan consensus is at risk of dissipating amid disputes about what steps to take and a desire among many Republicans to wield the issue as a weapon against President Biden. In the House and Senate, leading lawmakers in both parties have managed in an otherwise bitterly divided Congress to stay unified about the need to confront the dangers posed by China’s militarization, its deepening ties with…

Why Chinese Companies Are Investing Billions in Mexico

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Bill Chan had never set foot anywhere in Mexico, let alone the lonely stretch of desert in the north of the country where he abruptly decided to build a $300 million factory. But that seemed a trifling detail amid the pressure to adapt to a swiftly changing global economy. It was January 2022, and Mr. Chan’s company, Man Wah Furniture Manufacturing, was confronting grave challenges in moving sofas from its factories in China to customers in the United States. Shipping prices were skyrocketing. Washington and Beijing were locked in a…

IMF Upgrades Global Economic Outlook as Inflation Eases

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WASHINGTON — The International Monetary Fund said on Monday that the global economy was expected to slow this year as central banks continued to raise interest rates to tame inflation, but it also suggested that growth would be more resilient than previously anticipated and that a global recession would probably be avoided. The I.M.F. upgraded its economic growth projections for 2023 and 2024 in its closely watched World Economic Outlook report, pointing to resilient consumers and the reopening of China’s economy as among the reasons for a more optimistic outlook. The fund…

How a Texas Border City Is Shaping the Future of Global Trade

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The teeming warehouses carved into the desert surrounding Laredo, Texas, attest to an explosion of trade between the United States and Mexico. On a recent morning, 55-gallon drums full of chemicals concocted in Ohio awaited trucks that would haul them across the Rio Grande, for use as raw materials at a paint factory in Mexico’s industrial city of Monterrey. Destined northbound, brake pads manufactured in Mexico were headed to trucking firms as far away as South Dakota. The more trade expands, the greater the opportunities for Laredo, a sprawling city…

U.S. Pours Money Into Chips, but Even Soaring Spending Has Limits

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In September, the chip giant Intel gathered officials at a patch of land near Columbus, Ohio, where it pledged to invest at least $20 billion in two new factories to make semiconductors. A month later, Micron Technology celebrated a new manufacturing site near Syracuse, N.Y., where the chip company expected to spend $20 billion by the end of the decade and eventually perhaps five times that. And in December, Taiwan Semiconductor Manufacturing Company hosted a shindig in Phoenix, where it plans to triple its investment to $40 billion and build…

‘OK, Mexico, Save Me’: After China, This Is Where Globalization May Lead

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As American companies recalibrate the risks of relying on Chinese factories to make their goods, some are shifting business to a country far closer to home: Mexico. The unfolding trend known as “near-shoring” has drawn the attention of no less than Walmart, the global retail empire with headquarters in Arkansas. Early last year, when Walmart needed $1 million of company uniforms — more than 50,000 in one order — it bought them not from its usual suppliers in China but from Preslow, a family-run apparel business in Mexico. It was…

The Numbers in the News

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Numbers that count 2 Two major central banks — the Bank of Japan and the People’s Bank of China — were the only ones not to raise interest rates this year, as inflation threatened economic growth and sapped consumer purchasing power. Central banks have collectively increased rates by more than 70 percent in 2022, according to LPL Financial, with the same goal: raise borrowing costs to cool rising prices that have been hitting shoppers from London to Poughkeepsie. Many were following the Fed, which increased its prime lending rate to…