United States:
Fed’s Bullard Urges Front-Loading Hikes to Ensure Inflation Credibility
“Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank needs to move forward its plans to raise interest rates to underline the Fed’s inflation-fighting credibility. “I do think we need to front-load more of our planned removal of accommodation than we would have previously,” Bullard, who votes on monetary policy this year, said in an interview on CNBC on Monday. “These are numbers Alan Greenspan never saw,” Bullard said, referring to the former Fed chairman. “Our credibility is on the line here and we do have to react to data.”
Europe:
U.K. Incomes See Biggest Squeeze Since 2014 as Inflation Bites
“U.K. living standards fell at the fastest pace in almost eight years in December, a squeeze that is set to intensify in April when energy bills and taxes are due to soar. The average wage excluding bonuses rose 3.6% from a year earlier, less than the increase in consumer prices, the Office of National Statistics said Tuesday. Adjusted for inflation, wages fell 1.2%, the biggest decline since 2014.”
Asia:
Bank of Korea Successor Speculation Grows Along With Inflation Risk
Bank of Korea officials past and present, presidential advisers and global representatives are among potential successors to central bank Governor Lee Ju-yeol, whose impending departure is fueling speculation over a replacement at a time of elevated inflation. Lee’s successor will inherit rapidly normalizing monetary policy after two years of extraordinary stimulus to prop up a pandemic-hit economy. Having been cut as low as 0.5%, the policy rate has now returned to its pre-pandemic level of 1.25%.”
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