Daily Market Summary – January 12, 2022

United States:

Powell Makes Case for Fed Curbing Inflation While Doing No Harm

“Federal Reserve Chair Jerome Powell sought to reassure lawmakers and investors on Tuesday that the central bank can pull off the tricky task of bringing down four-decade high inflation without damaging the U.S. economy. In a 2-1/2 hour congressional confirmation hearing that was notably free of rancor, Powell said the Fed was on course to begin raising interest rates from near zero and reducing its mammoth $8.8 trillion balance sheet.”



Europe’s Energy Shock Rattles Consumers

“Surging energy prices are imposing a fresh squeeze on European consumers, already strained by the coronavirus, lockdowns and job worries. The financial pain is taking a toll on households, who are more worried about prices than at any time this century, and feel less inclined to splurge, according to a European Commission survey.”



Chinese City’s Time Off for Omicron Tests Shows Economic Risks

“The northern Chinese city of Tianjin — one of the world’s biggest ports and a production hub for foreign businesses — ordered a half-day break for Covid testing, the latest sign that China’s face-off with the omicron variant could disrupt vital supply-chains. All government agencies and companies in the city will get a break on Wednesday afternoon while employees are asked to “remain still” for its second round of mass Covid testing, according to a notice issued by Tianjin’s municipal government.”



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