August 3, 2023
United States:
Fed’s Barkin Says Inflation-Rate Drop May Be Soft-Landing Signal
Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the US economy can have a “soft landing,” returning to price stability without a damaging recession.
“There is still a plausible story that inflation normalizes in short order and the economy dodges additional trauma,” Barkin said Thursday in a speech in Blacksburg, Virginia. “Certainly, last month’s inflation read was a good one and I hope it is a sign. To be sure, the Fed’s objective is not to cause a recession; it’s to reduce inflation, in line with our mandate.”
Europe:
Russia Will Cut Its Crude Exports by 300,000 B/d in September
Russia will prolong a cut in its crude exports into September, while tapering the size of the supply reduction, according to Deputy Prime Minister Alexander Novak.
“Within the efforts to ensure the oil market remains balanced Russia will continue to voluntarily reduce its oil supply in the month of September now by 300,000 barrels per day,” Novak said in a statement on Thursday. The nation pledged to cut its overseas supplies by 500,000 barrels a day in August.
Asia:
China’s Push to Clear Hidden Debt Likely to Benefit Weak Regions
China is getting serious about clearing the off-balance sheet debt of local governments, and weaker provinces are likely to benefit the most from the process.
Zhang Wei, an analyst with Founder Securities Co., estimates that southwestern and northern provinces like Yunnan and Tianjin will likely be prioritized if China adopts a plan to reduce so-called hidden debt through bond swaps. Bloomberg News reported last month that officials are considering such a plan to help tackle a problem that’s become a major risk to economic growth and financial stability.
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