June 16, 2023
United States:
Fed’s Barkin Comfortable Doing More to Slow Resilient US Economy
Federal Reserve Bank of Richmond President Thomas Barkin said the central bank might need to tighten monetary policy further to reduce inflation and slow a resilient US economy and labor market.
“I want to reiterate that 2% inflation is our target, and that I am still looking to be convinced of the plausible story that slowing demand returns inflation relatively quickly to that target,” Barkin said in prepared remarks for a speech in Ocean City, Maryland. “If coming data doesn’t support that story, I’m comfortable doing more.”
Europe:
Economists See Rising Chance of ECB Hiking Rates in September
Economists see a greater chance that the European Central Bank will deliver two more interest-rate increases — extending what’s already an historic tightening cycle into September.
Goldman Sachs, UniCredit and BNP Paribas are among banks that have changed their outlook after policymakers delivered a quarter-point hike on Thursday and President Christine Lagarde said there’s more ground to cover to bring inflation back to 2%.
Asia:
China Faces Pressure to Boost Economy, But Rate Cuts May Not Be Enough
Expectations are growing that China’s government will boost spending on infrastructure as part of a broader stimulus push following the central bank’s interest rate cuts.
Authorities may increase the quota for local government special-purpose bonds to finance infrastructure investment, according to Nomura Holdings Inc., Standard Chartered Plc and Morgan Stanley. It’s possible the central government could issue special-purpose bonds, as it did in 2020, or use state policy banks to boost spending, other economists said.
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