Rising US prices Fed chief is dampening Inflation concerns

Status: 23.06.2021 9:39 a.m.

The head of the US Federal Reserve sees the reason for the current high inflation primarily in the recovery of the economy. The unexpectedly strong effects would soon fade, Powell said.

By Torsten Teichmann, ARD studio Washington

The demand in many industries is greater than the supply, meanwhile the prices for raw materials in the USA are rising, employers are having difficulties filling positions: All these effects of the economic upswing at the end of the corona pandemic are stronger than assumed, the head of the Federal Reserve (Fed), Jerome Powell, granted. Nevertheless, there will be no inflation, as in the 1970s, Powell said at a hearing in the US House of Representatives. “These factors will fade over time and we will get back to where we want to go. We are watching this carefully,” he said.

Interest rate hikes planned for 2023

The goal is an inflation rate of just over two percent. In May there was inflation at five percent . The Fed announced last week by the end of 2023, the key interest rate is expected to be increased in two steps to want. But in the short term it remains in the range between 0 and 0.25 percent. Powell had to defend his monetary policy at the hearing in the House of Representatives. Republican MP Steve Scalise accused a visibly annoyed Fed chief that the cheap money policy was harmful to hard-working families.

Steve Scalise criticized Fed policies as harmful to families. Image: REUTERS

Powell replied that lower income groups in particular have not yet benefited from the upswing in the United States. “Real incomes at the lower end of the spectrum are stagnating compared to those at the top,” he said. “Mobility across all income groups has decreased in the US and is now behind that in most other industrialized countries.”

Fed expects economic growth of 6.5 percent

These differences would hold back the US economy and the country as a whole. And that although the Fed is currently assuming that the US economy will grow by 6.5 percent this year with the help of the government’s trillion-dollar stimulus packages

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Negative interest on credit When it suddenly costs you to save

As of: 06/18/2021 8:58 a.m.

Up to now, banks have mainly charged new customers with negative interest rates. It also affects existing customers more and more frequently. Consumer advocates advise to be clear about what you want to do with the money.

From Iris Völlnagel, SWR

Anger and complaints from consumers are part of everyday life for Josephine Holzhäuser, financial expert at the consumer center in Rhineland-Palatinate. But since the beginning of the year, more and more consumers have come to her who have left their financial institutions “betrayed and sold” feel. The reason: More and more banks and savings banks are introducing negative interest rates on current and savings accounts.

More than 345 institutes collect negative interest

Many older people, but also younger ones, now sought advice from consumer advocates. Most of them have been customers for years, have taken out their mortgage lending or insurances with the banks, and now they are being threatened with termination if they are not willing to pay negative interest, says Holzhäuser. “From my point of view, this is a clumsy business practice.” People feel compelled and pressured. Many older people are overwhelmed – especially those who are not so fit online. Since the beginning of the year, more than 170 banks and savings banks in Germany have introduced negative interest rates. This is the result of a study on the www.biallo.de Internet portal. Every third bank only grants an allowance of 25,000 euros. The consumer portal Verivox also regularly researches and publishes the product overviews and price lists of around 1,300 credit institutions that are accessible online. As a result, more than 345 banks have now introduced negative interest rates for private customers. 19 banks charge fees for the call money account, which is usually free of charge. This also creates a de facto negative interest rate. In addition, there are the banks that do not publish any information, according to Verivox. Most recently, Postbank announced that it would lower the exemption limits for savings deposits on June 21 and one for new customers “Custody fee” from 50,000 euros on the current account and 25,000 euros on the daily allowance account. Contributions above this limit are charged with 0.5 percent. So far, the tax exemption has been 100,000 euros.

Banks point their fingers at the ECB

As a reason for that “Custody fee” the financial institutions repeatedly claim that they themselves pay negative interest rates to the European Central Bank (ECB). In 2014 it began to charge penalty interest on money that the commercial banks park in their central bank accounts. However, the banks are now granted exemptions. Critics therefore complain that the financial houses are doing business with negative interest rates.

This practice will not change in the foreseeable future, fears consumer advocate Holzhäuser. “If one bank does it, the others follow suit. If the pace continues, one no longer looks to see which bank has no negative interest, but from which tax exemption”, so wooden houses. David Bode from the legal enforcement team of the Federal Association of Consumer Organizations knows whether the introduction of negative interest is generally permissible. The association has filed suits at different courts in several federal states. It concerns both current and overnight money accounts. How long the litigation will take is difficult to estimate, according to Bode. There could possibly be first judgments in the current calendar year. In the end, the Federal Court of Justice may have to decide.

Consumers in a bind

A basic distinction should be made between existing and new customers. The latter advises the financial expert Holzhäuser to look at the small print before signing the contract. In the meantime, it is noted in the general terms and conditions whether negative interest is charged above a certain amount.

This is different with existing customers, where changes require an individual agreement. In the past year, the banks would have allowed existing customers to talk to them. In the meantime, the banks are going to terminate their business relationships. “That has another dimension”, so the consumer advocate. “As a customer, I then have to decide whether to sign or not.” In the meantime, however, she advises signing more and more often, according to Holzhäuser. “If people want to stay with the bank, they have to bite the bullet and watch the further case law.” If you don’t want to sign, you shouldn’t wait for the bank to give notice of termination, advises the consumer advocate. “We cannot yet assess how such a termination will affect Schufa, for example.” Alternatively, consumers could look for a new bank. As a rule, you have some time because the bank contacts its customers one to two months in advance.

Shift money, check investments

Many banks charged negative interest for amounts in excess of 100,000 euros. This corresponds to the amount of the deposit protection; that is, the amount for which the bank guarantees in the event of a total failure. If you have more in your account, you should distribute your money between several accounts at different institutions, according to the advice of the financial expert.

After all, everyone should check why they have so much money in their account at all, according to the consumer advocate. The following also applies: do not accept every offer without review. “In case of doubt, it is better to go with negative interest than to invest the money headlong.” A unit-linked annuity insurance with a term of twelve years is not an adequate offer for people over 70, according to Holzhäuser. You can also deposit the money in a locker or safe at any time. Just leaving it at home is the worst option because of the risk of theft, according to the financial expert

Online warehouse trading forged many famous brands in Thach Cau Street, Long Bien District. Frequently changing warehouse locations, using social networks and forms of livestream to sell goods, deliver goods via delivery services, that is the way that objects dealing in contraband, counterfeit and poor quality goods. show in recent times. Although the competent forces have discovered and destroyed many groups of counterfeit and pirated goods, but in reality, this activity is still very active. When the warehouse at 30, lane 139, lane 56, Thach Cau street (Long Bien district) was opened, the Market Management Team (QLTT) No. 16 – Hanoi Department of Information Management coordinated with the Economic Police Team – District Police. Long Bien rushed into an inspection, causing the owner of the establishment not to return in time. At the time of inspection, the authorities discovered that thousands of fashion footwear products with signs of counterfeiting famous brands such as Versace, Gucci, Adidas, LV, Burberry, Chanel, Dior … were stored. , divided in an area of ​​more than 100 m2. The owner of the goods cannot present any documents to prove the origin of the goods. Team leader of Information Management Team No. 16 Nguyen Sy Binh said that the functional forces had to reconnaissance and monitor for months. This business operates mainly in the form of online sales, livestream through social networks Facebook and some e-commerce platforms. They set up a separate room for livestream. In order to evade the inspection of the competent forces, the owner often closes the door, only when there is a commodity transaction, the owner of the goods will open the door, deliver the goods to the customer. In a similar manner, the warehouse is hidden in Phu My A village, Phu Son commune (Ba Vi district) by Nguyen Van Ngoc (born in 1992, with a permanent residence in Bang Y village, Son Da commune, Ba Vi district. ) owner, every day to deliver more than 3,000 orders. When the information management force inspects, this warehouse contains tens of thousands of products from clothes, household appliances, blankets, to cosmetics, functional foods … Worth mentioning, a large number of goods have signs forging trademarks registered for protection in Vietnam, along with thousands of illegally imported household products such as induction cookers, stoves, rice cookers, electric pans … Through investigation, one of the methods is This facility uses is through a software system called TPOS, dozens of other Facebook accounts will simultaneously share livestreams to close orders. Recorded on the establishment’s sales system, in the past six months, more than 655 thousand orders were closed for sale and then sent through the fast delivery service system. The leader of the E-Commerce Working Group (General Department of Information Management), Nguyen Ky Minh, said that the most difficult thing for authorities to access pirated goods sold online is to verify Facebook’s IP address. Online sellers have a lot of experience dealing with authorities, shipping is also mainly through express delivery. In order to avoid inspection, shippers often move and change warehouse locations continuously. Along with the rapid development of the e-commerce sector, the smuggling and trading of counterfeit and poor quality goods on the Internet environment have also increased. Director of Department of Information Management of Hanoi Chu Xuan Kien said that almost every day, Hanoi Information Management Department also receives information about complaints from consumers about online purchases because the quality of goods on the website and in fact is not the same. The common tricks used by the objects are: setting up multiple Facebook accounts, running ads, posting photos of products, but only the phone number or the general address, when customers ask, only receive inbox (message private news). Every day, employees at the facilities perform livestream and close the order to deliver goods across the country through express carriers. Facing this situation, from the beginning of 2020, the General Department of Information Management has set up a specialized division in charge of anti-fraud in the in-line environment, thereby handling and destroying many smuggling lines and groups. and trading in counterfeit and poor-quality goods on the network environment. However, the information management force is short of specialized and highly specialized forces to locate warehouses, demonstrate tricks … Therefore, besides creating conditions for e-commerce to develop, it is also necessary to strengthen anti-smuggling solutions online to ensure the interests of consumers and help businesses do business in accordance with the law.