June 21, 2023
United States:
Fed’s Powell Says Higher Interest Rates Needed to Curb Inflation
Federal Reserve Chair Jerome Powell said policymakers expect interest rates will need to move higher to reduce US growth to below its long-term trend and contain price pressures, with the timing of additional increases based on incoming data.
“My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal,” Powell said Wednesday in prepared remarks to be delivered to the House Financial Services Committee. “We will continue to make our decisions meeting by meeting, based on the totality of incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks.”
Europe:
European Stocks Decline With Focus on Fed Outlook, UK Inflation
European equities fell as Federal Reserve Chair Jerome Powell said policymakers expect interest rates will need to move higher, while hotter-than-expected UK inflation figures weighed down sentiment.
The Stoxx Europe 600 slipped 0.5% at 2:12 p.m. in London, dropping for a third day. Miners and real estate stocks were among the worst performers while banks advanced.
Asia:
China Begins Nationwide Push to Reveal Hidden Government Debt
China has begun a fresh round of nationwide inspections to work out how much money local governments’ owe, according to people familiar with the matter, a sign that authorities are preparing to take concrete steps to tackle a key financial risk.
Local officials will be pressed to come clean about their so-called hidden debt as national leaders attempt to get a fuller picture of liabilities across all levels of government, the people said, asking not to be named discussing private information. The campaign is being led by the Ministry of Finance, one of the people said.
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