Free Trial
US TSY OPTIONS

Pullback In TY Skew Seen During Recent Bid

AUSSIE BONDS

AOFM Weekly Issuance Slate

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI INTERVIEW: Rates May Have To Exceed Neutral-Fed's Giannoni

(MNI) Washington

Inflation may prove hard to tame amid high oil prices and persistent supply chain issues, Dallas Fed research director Marc Giannoni tells MNI.

U.S. inflation pressures show some early signs of retreat as Fed tightening begins to slow demand, but elevated energy prices and continued supply chain disruptions raise the likelihood of having to take interest rates above neutral to tame inflation, Dallas Fed research director Marc Giannoni told MNI.

Although CPI hit another four-decade high in March as gas prices surged after Russia's invasion of Ukraine, core inflation cooled on a month-on-month basis, but Giannoni said it was too early to say price rises had peaked. More expensive oil and supply chain snags are likely to persist for some time, contributing to the risk that higher inflation becomes built into the expectations of consumers and firms’ price-setting behavior, which would require a monetary policy response.

Keep reading...Show less
604 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

U.S. inflation pressures show some early signs of retreat as Fed tightening begins to slow demand, but elevated energy prices and continued supply chain disruptions raise the likelihood of having to take interest rates above neutral to tame inflation, Dallas Fed research director Marc Giannoni told MNI.

Although CPI hit another four-decade high in March as gas prices surged after Russia's invasion of Ukraine, core inflation cooled on a month-on-month basis, but Giannoni said it was too early to say price rises had peaked. More expensive oil and supply chain snags are likely to persist for some time, contributing to the risk that higher inflation becomes built into the expectations of consumers and firms’ price-setting behavior, which would require a monetary policy response.

Keep reading...Show less