Central banks face an excruciating trade-off

Federal Reserve chair Jerome Powell. (Image: Getty)

Fri, 24 Mar 2023

The job of central bankers is to keep banks stable and inflation low. Today they face an enormous battle on both fronts. The inflation monster is still untamed, and the financial system looks precarious.Stubbornly high inflation led the Federal Reserve to increase interest rates by a quarter of a percentage point on March 22, less than a week after the European Central Bank raised rates, too. The Fed acted days after three mid-sized American banks had collapsed and Credit Suisse, a grand old Swiss bank with more than 50...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Economy

Analysts struggle to find upside from Trump tariffs

‘They've forgotten the lessons of the Great Depression,’ one analyst said.

Gregor Thompson 2:00pm

Transport

Iata calls for urgent airport pricing reforms

Auckland Airport's monopoly means it can game the regulatory process, Iata says.

John Anthony 1:00pm

Iata calls for urgent airport pricing reforms

Markets

S&P/ASX200 takes a tumble on Trump's Liberation Day, Asia to follow suit

Rebecca Howard 12:55pm

Sponsored

New life in property market

Tax rule changes are bringing back mum-and-dad investors.

Fletcher Living

Sponsored

Commercial property trends: AI, sustainability and growing confidence

Falling rates and green tech shape property investment’s future.

PMG

More World

Markets

Trump’s tariffs: where things stand

The basics of the US president’s far-reaching protectionist agenda.

The Wall Street Journal 10:28am

Technology

X and xAI megdeal breaks Wall Street’s rulebook

The merger is still raising dealmakers' eyebrows.

The Wall Street Journal 02 Apr 2025

News in Brief

Canadian company buys majority stake in Serato for $116.9m

Canadian technology holding company Tiny has announced a 66% acquisition of DJ software company Serato for US$66 million (NZ$116.9m).Tiny has agreed to acquire the majority stake in Serato, payable through a combination of cash and Class A common shares. The deal valued the compa...

Staff reporters 01 Apr 2025

World

World economies brace for Trump tariffs ahead of deadline

The uncertainty was roiling markets.

AFP 01 Apr 2025

Central banks face an excruciating trade-off

More World

Your company has a subscription

Team