November 3, 2022
Powell Sees Higher Peak for Rates, Path to Slow Tempo of Hikes
Federal Reserve Chair Jerome Powell opened a new phase in his campaign to regain control of inflation, saying US interest rates will go higher than earlier projected, but the path may soon involve smaller hikes.
Addressing reporters Wednesday after the Fed raised rates by 75 basis points for the fourth time in a row, Powell said “incoming data since our last meeting suggests that ultimate level of interest rates will be higher than previously expected.”
Europe Faces Widening Natural Gas Shortfall Next Year, IEA Says
Europe faces a shortage of natural gas in 2023 and could struggle to get even half the amount it needs next summer to refill storage sites, the International Energy Agency warned.
Next year’s supply gap could be as much as 30 billion cubic meters of gas if Russian pipeline flows halt and demand from China rebounds, the IEA said in a report Thursday. The agency repeated its call for measures to bring down gas demand in order to ease the energy crisis.
China’s PBOC Reaffirms Pledge to Make Yuan More Flexible
The People’s Bank of China’s Governor Yi Gang reaffirmed a pledge to make the yuan exchange rate more flexible, while vowing to improve the monetary policy.
The central bank will keep the yuan basically stable at a reasonable equilibrium level, Yi reiterated in a meeting held Thursday to study the Communist Party’s twice-a-decade congress, according to a statement published by the PBOC.
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