Fed’s Daly Says Covid Pushing Prices Up but Impact Should Fade
“The U.S. labor market will see “ups and downs” as the pandemic lingers but it’s premature to judge that the recovery is in peril, said San Francisco Federal Reserve President Mary Daly. “It’s too soon to say it’s stalling, but certainly we’re seeing the pain of Covid, and the pain of the delta variant,” Daly told CBS’s “Face the Nation” on Sunday. “Covid is not behind us, so I don’t expect the job market to just be continuous. It is going to have these ups and downs.”
ECB’s Knot Urges Investors to Take Inflation Risks Seriously
“Investors must be careful not to underestimate inflation risks that could prompt the European Central Bank to tighten monetary policy, according to Governing Council member Klaas Knot. Risky behavior in financial markets has increased sharply since the start of the pandemic, making them vulnerable to a turnaround in sentiment, Knot told reporters in Amsterdam, where he presented the Dutch central bank’s Financial Stability Report.”
China Faces Power Hikes And That’s Likely to Cut Metals Output
“China’s energy crisis is likely to mean higher electricity prices, forcing the nation’s army of metals smelters to reduce output and threatening the industrial activity that has underpinned the nation’s recovery from the pandemic. In a bid to boost power generation, the government will allow electricity prices to rise by as much as 20%, double the current limit, according to a statement Friday from China’s cabinet. Power costs for the most-energy intensive industries, which would include metals producers, won’t be subject to a cap. China is the biggest producer and consumer of most metals.”
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