January 30, 2023
United States:
Fed’s Wall Street Clash Sets Stage for Powell’s Hawkish Message
Jerome Powell and Wall Street are headed for another face-off this week as the Federal Reserve seeks to slow its inflation-fighting campaign without signaling a readiness to stop.
Despite 2022’s slew of interest-rate hikes from Chair Powell and colleagues, financial conditions are the loosest since last February as investors bet fading inflation will allow the central bank to soon cease raising borrowing costs and then cut them later this year.
Europe:
ECB Debate Looks to March With This Week’s Hike Assured
The European Central Bank’s first interest-rate decision of 2023 is just days away, but the focus has already shifted to what will happen beyond that.
A half-point hike is all but guaranteed on Thursday after President Christine Lagarde and many of her colleagues doubled down on a pledge from their last gathering in December.
Asia:
China Economy Shows Muted Improvement During Holiday Period
China’s economy showed a few signs of improvement in January as the country charted a path through its second month without Covid Zero curbs, though a major holiday season kept a lid on some activity.
Bloomberg’s aggregate index of eight early indicators showed a slight uptick in activity in January. That compared with a contraction in December as the economy slowed in response to a massive Covid-19 outbreak.
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