September 21, 2023
United States:
Fed Signals Higher-for-Longer Rates With Hikes Almost Finished
Federal Reserve Chair Jerome Powell made clear Wednesday the central bank is close to done raising interest rates, but his colleagues delivered the message that resonated: Borrowing costs must remain higher for longer amid renewed strength in the economy.
After a series of rapid rate hikes over the past 18 months, the Fed can now “proceed carefully,” Powell said — a sentiment he repeated at least a dozen times Wednesday during a press conference that followed the central bank’s decision to leave rates unchanged.
Europe:
Russia Temporarily Bans Diesel Exports; European Prices Jump
Russia has temporarily banned exports of the diesel in a bid to stabilize domestic supplies, adding pressure on already tight global fuel markets.
“Temporary restrictions will help saturate the fuel market, that in turn will reduce prices for consumers” in Russia, the government’s press office said on its website. The ban, which also applies to gasoline, comes into force on Sept. 21, and doesn’t have the final date, according to the government decree, signed by Prime Minister Mikhail Mishustin.
Asia:
China Stocks Slide to 10-Month Low as Growth Pessimism Persists
Chinese stocks extended their poor run on Thursday, pushing a key gauge to its lowest since November, as an exodus of foreign funds continued amid persistent concerns about the economy.
The MSCI China Index dropped as much as 1.6%, on track for a third consecutive week of losses. The Hang Seng Index and a gauge of major Chinese firms listed in Hong Kong also fell more than 1%. The onshore yuan weakened as much as 0.2%.
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