September 8, 2022
Powell Says Fed Will Act ‘Forthrightly’ Until Inflation Job Done
Federal Reserve Chair Jerome Powell said the US central bank will not flinch in its efforts to curb inflation “until the job is done.”
“We need to act now, forthrightly, strongly as we have been doing,” Powell said Thursday in remarks at the Cato Institute’s monetary policy conference in Washington. “My colleagues and I are strongly committed to this project and will keep at it.” He spoke with a moderator in a virtual question-and-answer session.
ECB Intensifies Inflation Fight With Historic Jumbo Hike
The European Central Bank intensified its battle against record inflation by hiking interest rates by a historic three-quarters of a percentage point and pledging “several” further increases, even as the outlook for economic growth darkens.
China Overtakes US With $306 Billion Corporate Credit Boom
China has surged ahead of the US for corporate bond deals in its yuan credit market in recent months, a rare shift that highlights the deepening impact of the two countries’ diverging monetary policies.
Yuan-denominated bond issuance by non-financial firms exceeded that in the greenback in both July and August, a first for two consecutive months, according to Bloomberg-compiled data. The momentum has started building since the Federal Reserve kicked off its tightening cycle in March: Sales of yuan notes, almost entirely by Chinese firms, totaled 2.04 trillion yuan ($306 billion based on exchange rates at the time of deals) between April and August, versus $283 billion of dollar debt worldwide.
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