Overseas Headlines – November 2, 2022

November 2, 2022


United States:

Fed to Hike Big Again and Open Door to Downshift

The Federal Reserve looks set to deliver a fourth straight super-sized rate increase with Chair Jerome Powell repeating his resolute message on inflation and opening the door to a downshift — without necessarily pivoting yet.

The Federal Open Market Committee is expected to raise rates by 75 basis points on Wednesday to a range of 3.75 to 4%, the highest level since 2008 as the central bank extends its most aggressive tightening campaign since the 1980s.



ECB’s Makhlouf Says Too Early to Specify Size of Next Rate Hike

It’s too early to determine by how much to raise interest rates at the European Central Bank’s next policy meeting in December, according to Governing Council member Gabriel Makhlouf.

Speaking on Wednesday in Dublin, Makhlouf said officials will decide on what action to take on a meeting-by-meeting basis, based on incoming economic numbers.



China’s Covid Curbs, Droughts Hit Tourism, and Factory Hubs

China’s Covid disruptions and extreme weather this summer dragged on growth for several of the country’s popular tourist spots and factory hubs, underscoring the economy’s fragility.

At least eight provincial-level jurisdictions reported slower growth or flipped into contraction in the first nine months of 2022 compared to the first half as Covid hampered businesses and a historic drought created an energy crisis.




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