October 19, 2022
Fed Can’t Pause Rate Hikes With Core Inflation Accelerating, Kashkari Says
The Federal Reserve can’t pause its campaign of monetary policy tightening once its benchmark interest rate reaches 4.5% to 4.75% if “underlying” inflation is still accelerating, Minneapolis Fed President Neel Kashkari said.
“Core services inflation — which is the stickiest of all — keeps climbing, and we keep getting surprised on the upside,” Kashkari said Tuesday during a panel discussion hosted by the Women Corporate Directors Minnesota Chapter. “If we don’t see progress in underlying inflation, or core inflation, I don’t see why I would advocate stopping at 4.5, or 4.75, or something like that.”
Euro Zone Escapes Double-Digit Inflation by Whisker on Revision
The euro zone’s first-ever brush with double-digit inflation was revised away by a fraction in a fuller sample of data for September that still revealed rampant price pressures bearing down on the region.
The annual rate of increase, which remains a record in the history of the single currency, is now measured at 9.9% instead of 10%, Eurostat said in a statement on Wednesday in Luxembourg.
China Property Shares Gain as More State-Backed Bond Sales Loom
Shares of Chinese developers rose as two large builders plan to issue a second round of state-guaranteed bonds amid the sector’s ongoing liquidity crunch.
A Bloomberg Intelligence gauge of real estate firms climbed as much as 3.1% Wednesday morning, bucking a broader decline in Hong Kong stocks. Longfor Group Holdings Ltd. and Country Garden Holdings Co. briefly jumped more than 6%.
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