October 19, 2022
United States:
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.”
Europe:
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.
Asia:
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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