November 28, 2022
Powell to Set Stage for Slowing Fed Rate Hikes Amid Hawkish Tone
Chair Jerome Powell is expected to this week cement expectations that the Federal Reserve will slow its pace of interest-rates increases next month, while reminding Americans that its fight against inflation will run into 2023.
Powell is scheduled to deliver a speech, nominally focused on the labor market, at an event on Wednesday hosted by the Brookings Institution in Washington. It will be one of the last from policymakers before the start of a quiet period ahead of their Dec. 13-14 gathering.
Lagarde Says ECB Must Hike Even as Economy Weakens Into 2023
European Central Bank President Christine Lagarde said borrowing costs will continue to rise even as economic activity slows down in the face of record inflation.
Addressing the European Parliament in Brussels, Lagarde said high uncertainty, tighter financial conditions and softening global demand are weighing on growth, which is “expected to continue weakening for the remainder of this year and the beginning of next.”
China Economy Braces for Further Slump as Covid, Protests Spread
China’s economic activity slumped in November and could drop further in coming weeks as Covid outbreaks spread across the country and protests against tighter virus restrictions escalate.
Bloomberg’s aggregate index of eight early indicators showed a likely contraction in activity in November from an already subdued pace in October. With Covid cases spreading rapidly in each of China’s provinces now and major cities like Guangzhou, Beijing and Zhengzhou imposing new restrictions to limit residents’ movements, the outlook remains grim.
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