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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessMNI BRIEF: NABE Survey Shows Growing Wage-Price Spiral Concern
The potential for a wage-price spiral is a major risk to U.S. growth in 2022, according to just over half of respondents in a National Association of Business Economics survey published Monday, showing that 19% of panelists believe a wage-price spiral is already underway.
Projections for Federal Reserve's target rate have also increased. The median forecast for the Fed's overnight rate at end-of-year 2022 rose from 1.125% in the Feb survey to 2.375% in the most recent survey. The median forecast for end-2023 also rose sharply—seeing the fed funds rate move from 1.875% in the previous survey to 3.00%.
Former Fed economists have told MNI the U.S. central bank is determined to head off a potential wage-price spiral with aggressive monetary tightening, even at the cost of larger-than-desired losses to growth and jobs (MNI: Fed Seen Taking Bumpy Road to Avoid Wage-Price Spiral).
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.