Jerome Powell Could Face More Opposition as Fed Choices Get Tougher BloombergJerome Powell Could Face More Opposition As Fed Choices Get Tougher 30 Apr 2023, 6:51 PM IST 30 Apr 2023, 6:51 PM IST 30 Apr 2023, 6:51 PM IST WhatsApp Twitter Facebook Telegram
Runners pass the Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Monday, Aug. 13, 2018. Federal Reserve officials left U.S. interest rates unchanged in August and stuck with a plan to gradually lift borrowing costs amid strong growth that backs bets for a hike in September.
China’s economic activity worsened in November before the government abruptly dropped its Covid Zero policy, with more disruption to growth likely as infections surge.
California, the top agriculture state in the US, has faced drought this year that led to $3 billion worth of losses. And in Florida, which is the top US supplier of fruits and vegetables in the fall and winter months, experienced a storm that cost the produce industry in the state nearly $2 billion.
Policy makers have repeatedly said they won’t lower the key rate until 2024.
“Inflation should come down, but I don’t expect its drop to be immediate nor predictable,” said Barkin, who isn’t a voter on the rate-setting Federal Open Market Committee this year. “Significant shocks simply take time to dampen,” he said, referring to the disruptions created by the Covid-19 pandemic, supply-chain snarls, and Russia’s invasion of Ukraine.
The move was recommended by the Financial Policy Committee, amid fears of a “material risk” to financial stability if the dysfunction continued. “This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy,” the BOE said. It is not a monetary policy decision.
(Bloomberg) — The International Monetary Fund criticized the UK’s package of tax cuts and other steps as “untargeted” and said the measures are likely to increase inequality, weighing in after the plan sent the pound to a record low.
Seven times since last March, Ruili—on China’s Myanmar border—has felt the full force of Xi Jinping’s Covid Zero policy.
The region is seen expanding 4.3% this year, according to the bank’s Asian Development Outlook Update released Wednesday, compared with a 4.6% projection in July. Growth in China, the largest economy in Asia, is expected to be slower at 3.3% against a 4% expansion seen previously.