Fed Debate Moves to Bond Taper and Liftoff: Decision-Day Guide
“With inflation and economic growth accelerating this year, Federal Reserve Chair Jerome Powell and his colleagues may consider moving up a discussion on scaling back monetary stimulus and penciling in a first interest rate hike as soon as 2023. The Federal Open Market Committee is all but certain to hold interest rates near zero at the conclusion of a two-day policy meeting Wednesday, and repeat a vow to keep buying bonds at the current $120 billion monthly pace. The panel will release a statement and quarterly economic forecasts at 2 p.m. in Washington, and Powell will hold a press briefing 30 minutes later.”
U.K. Inflation’s Jump Above BOE Goal Heats Up Debate on Prices
“U.K. inflation surged unexpectedly past the Bank of England’s target for the first time in almost two years, lifting the pound and adding to speculation about when monetary policy could be tightened. Consumer prices rose 2.1% from a year earlier, the highest since July 2019, the Office for National Statistics said Wednesday. Economists and the BOE had expected an increase of 1.8%. Core inflation jumped to 2%, the most since August 2018.”
China’s Recovery Steadies as Economy Slowly Starts to Rebalance
“China’s economy steadied for a second month, a sign that the post-pandemic recovery is in a more stable phase and that growth is slowly rebalancing toward the consumer. The recovery from the pandemic has been led by a property-fueled construction boom and surging industrial production for export, with consumer spending remaining the weak link — and the key to more sustainable growth. The latest data released Wednesday by the statistics bureau showed a shift toward consumption-driven demand is underway, but at a gradual pace.”
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