November 18, 2022
United States:
Wall Street Economists Split on Whether Fed Cuts Rates in 2023
Wall Street’s biggest banks agree the Federal Reserve will hike US interest rates further into next year, but are at odds over how high it will take them and whether it will be cutting by the end of 2023.
In a reflection of how tough Chair Jerome Powell’s job is becoming, leading economists are split over whether the central bank will need to keep attacking stubbornly high inflation or if the risks of recession and rising unemployment will become bigger concerns.
Europe:
ECB Shouldn’t Hold Back on Hikes on Recession Fears, Nagel Says
The European Central Bank needs to continue taking “decisive steps” on interest rates, according to Bundesbank President Joachim Nagel.
“It would be wrong to hold back on further decisive steps for fear of a downturn,” the German central banker said Friday in Frankfurt. With 200 basis points of hikes at the last three meetings, the Governing Council has “made important steps on the path of monetary-policy normalization. But we cannot stop here.”
Asia:
Japan Inflation Hits Four-Decade High in Test of BOJ Resolve
Japan’s inflation hit its fastest clip in 40 years in October, an outcome that further stretches the credibility of the central bank’s view that continued stimulus is needed to secure stable price growth.
Consumer prices excluding fresh food climbed 3.6% in October from a year ago, the internal affairs ministry said Friday.
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