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Fed policymakers: September rate hike a question of how big, not if

“Market pricing for 50 basis points potentially in June and July, from the data we have in hand today, seems like a reasonable path,” Fed Vice Chair Lael Brainard told CNBC. But even if price pressures are starting to abate, the Fed will still likely raise rates, just by a smaller amount, she signaled. “Right now it’s very hard to see the case for a pause,” she told CNBC, noting there is “a lot of work to do” to get inflation, running at a 40-year-high, down to the Fed’s 2% target.
— Read on ca.finance.yahoo.com/news/fed-policymakers-september-rate-hike-191748678.html

Larry Fink Sees Elevated Inflation for Years Due to Supply Shocks

(Bloomberg) — BlackRock Inc. Chief Executive Officer Larry Fink said he expects inflation to remain elevated for several years primarily because of snarled global supply chains.Most Read from BloombergOne-Third of Americans Making $250,000 Live Paycheck-to-Paycheck, Survey FindsElon Musk’s Ultimatum to Tesla Execs: Return to the Office or Get OutJamie Dimon Says JPMorgan Is Bracing Itself for Economic ‘Hurricane’Fed Starts Experiment of Letting $8.9 Trillion Portfolio ShrinkStocks Decline as Da
— Read on ca.finance.yahoo.com/news/fink-sees-elevated-inflation-years-192701018.html

Bank of Canada says rates may have to double to fend off ‘galloping inflation’

OTTAWA (Reuters) -The Bank of Canada will probably have to raise its policy rate to the top of its neutral range, double its current level, and could go higher, to prevent soaring inflation from becoming entrenched, a deputy governor said on Thursday. Paul Beaudry, speaking to a business audience in the Ottawa area, said the central bank was considering the pace at which it moves to neutral, the 2%-3% range where interest rates neither stimulate nor weigh on growth, along with how high rates may go. The central bank on Wednesday increased its policy rate to 1.5% from 1.0%, its second consecutive half percentage point hike, and said it would “act more forcefully” if needed to tame inflation.
— Read on ca.finance.yahoo.com/news/bank-canada-says-rates-may-144710168.html

Jamie Dimon says ‘brace yourself’ for an economic hurricane caused by the Fed and Ukraine war

“You know, I said there’s storm clouds but I’m going to change it … it’s a hurricane,” Dimon said Wednesday at a financial conference in New York.
— Read on www.cnbc.com/2022/06/01/jamie-dimon-says-brace-yourself-for-an-economic-hurricane-caused-by-the-fed-and-ukraine-war.html

OPEC and allies to raise production by additional 216,000 barrels per day

CNBC’s Brian Sullivan reports on news from OPEC.
— Read on www.cnbc.com/video/2022/06/02/opec-and-allies-to-raise-production-by-additional-216000-barrels-per-day.html

Fed Vice Chair Lael Brainard says it’s ‘very hard to see the case’ for the Fed pausing rate hikes

Fed Vice Chair Lael Brainard said it’s unlikely the central bank will be taking a break from its current rate-hiking cycle anytime soon.
— Read on www.cnbc.com/2022/06/02/fed-vice-chair-lael-brainard-says-its-hard-to-see-the-case-for-the-fed-pausing-rate-hikes-.html

Financial markets are focused on where the Federal Reserve will go with rates in September, with hopes diminishing that it could back off half-point rate hikes.
— Read on www.marketwatch.com/story/investors-hopes-for-either-a-rate-pause-or-25-basis-point-hike-in-september-are-starting-to-slip-away-11654013563

Fed’s quantitative tightening is about to arrive: What that might mean for markets – MarketWatch

While the precise impact of “quantitative tightening” is still up for debate, analysts tend to agree that it’s likely to present a further headwind to stocks.
— Read on www.marketwatch.com/story/feds-quantitative-tightening-is-about-to-arrive-what-that-might-mean-for-markets-11654024143

Category: Blog