Goldman’s Hatzius Sees Chance Fed May Need to Hike Rates Past 4%
“The Federal Reserve may need to raise interest rates “significantly” higher than it currently expects to cool an overheated U.S. economy, Goldman Sachs Group Inc. Chief Economist Jan Hatzius said. “If the economy does not slow and if we, in particular, don’t get a pretty substantial slowdown in employment growth, then you’d be looking at something that could go significantly higher, to the 4%-plus range,” he said in an interview on Bloomberg Television on Friday.”
European Gas Prices Rebound Amid Worries Over Ukraine Transit
“European natural gas prices gained after five days of declines on concerns that Russian flows through key transit country Ukraine may be disrupted. Russian military operations are putting the stability of flows to Europe at risk, Gas Transmission System Operator of Ukraine said on Friday. Russian forces and “illegal armed groups under their control” are disrupting operations at a major compressor station, key for about a third of gas that Ukraine transits to Europe, it said.”
A $430 Billion Cautionary Tale Inside Japan’s Central Bank
“In most of the world, exchange-traded funds are simply tools that allow investors to track a certain set of stocks. In Japan, they’ve been saddled with everything from propping up the market and boosting inflation, to accelerating economic growth, improving corporate governance and even encouraging gender equality. Such wide-ranging goals have led the Japanese central bank to amass a whopping 80% of the country’s ETFs—equivalent to about 7% of its $6 trillion stock market—in less than a decade. That’s far further than any other central bank in the world has gone in trying to prime its economy via equities purchases. The Bank of Japan has also outpaced peers with its $3.7 trillion in net bond purchases.”
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