United States:
How Fed Could Decide to ‘Shock and Awe’ With Half-Point Hike
“Federal Reserve Chair Jerome Powell may consider the first half-point interest-rate increase in more than two decades later this year if he needs a “shock and awe” approach to counter persistently high inflation that risks feeding into Americans’ psychology. The Fed has penciled March in for its first rate hike since 2018 and is likely to begin with a quarter-point move as part of its usual caution as it begins to remove monetary stimulus.”
Europe:
ECB Path to Rate Hike Seen Starting With QE End Early Next Year
“The European Central Bank is still more than one and a half years away from raising interest rates, according to economists polled by Bloomberg. A week before the Governing Council’s upcoming policy meeting, respondents said an end of bond-buying in March next year would pave the way for the ECB’s first post-pandemic hike in September 2023. That would put the institution nearly two years behind the Bank of England, which has already raised borrowing costs to rein in surging inflation.”
Asia:
Chinese Holiday Travel Makes a Slow Recovery as Omicron Spreads
“Hundreds of millions of Chinese people are expected to make the trip back to their hometowns over the Lunar New Year break, though holiday travel is nowhere near pre-pandemic levels as Covid-19 spreads. Many are making the journey home for the first time in years, after stringent testing and isolation rules for travelers last year prevented some people from taking the traditional extended year-end break.”
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