November 24, 2022
Most Fed Officials Seek to Slow Pace of Interest-Rate Hikes Soon
Federal Reserve officials concluded earlier this month that the central bank should soon moderate the pace of interest-rate increases to mitigate risks of overtightening, signaling they were leaning toward downshifting to a 50 basis-point hike in December.
“A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” according to minutes from their Nov. 1-2 gathering released Wednesday in Washington.
EU Puts Energy Crisis Steps on Hold to Address Gas Price Cap
The European Union is set to pause efforts to approve a package of emergency measures to curb fallout from high natural gas prices as diplomats try to resolve a deep split over a push to cap the cost of gas.
Energy ministers holding an emergency meeting in Brussels agreed on the content of several emergency measures, but will delay formal approval until mid-December with a group of countries pushing to toughen the EU’s executive arm’s price-cap plan, according to two EU diplomats.
China to Ramp Up Monetary Stimulus as Growth Outlook Darkens
China signaled more monetary stimulus was on the cards, including a likely cut to the reserve requirement ratio for banks, as it ramps up support for an economy under strain from surging Covid cases and more lockdowns.
The State Council said in a statement Wednesday that monetary tools “such as a RRR cut” will be used “in a timely and appropriate manner” to maintain reasonably ample liquidity. A cut in the RRR — the amount of cash banks must keep in reserve — could land as soon as this week, given the central bank usually imposes a reduction within days of a cabinet statement such as this.
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