June 5, 2023
United States:
The Fed’s Interest Rate Strategy Is Getting Tricky as Plans to Skip a Hike Emerge
The Federal Reserve’s June meeting is shaping up to be one of the trickiest in its 15-month campaign to tame inflation: Chair Jerome Powell seems intent on skipping an interest-rate increase, while explaining to the public that officials aren’t done yet.
The strategy is sensible, confusing and risky all at once, Fed watchers say.
Europe:
BOE Wants Deposit Protection Fund to Recapitalize Failing Banks
The Bank of England is drawing up plans to recapitalize failing banks through the industry’s deposit protection program under reforms designed to address shortcomings exposed by the collapse of Silicon Valley Bank earlier this year.
The proposal, which would overhaul the BOE’s resolution regime, would see funds from the industry-backed Financial Services Compensation Scheme used to strengthen the books of foundering lenders, a person familiar with the deliberations said, asking not to be named discussing internal matters.
Asia:
Japan’s Rapid Return of Tourists Helping Fuel Inflation for BOJ
Foreign tourists packing flights to Japan are helping the economy climb out of a recession with spending power that is also fueling upward pressure on hospitality-sector pay and prices.
Almost two million visitors arrived from overseas in April, compared with less than 140,000 a year earlier, according to Japan’s National Tourism Organization.
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