Free Trial
STIR

Effective Fed Funds Rate

EUR

EURCHF sees further downside momentum

LATAM FX

Price Signal Summary: USDMXN Remains Soft

US TSY FUTURES

Block, 10Y Sale

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:Housing Cost Lag To Drive Inflation As Fed Hikes

(MNI) Washington

Fannie Mae chief economist Duncan says the Fed will have to drive joblessness higher and a lag in housing costs will make its task harder.

U.S. unemployment looks set to rise substantially even if the Fed manages to steer the economy into only a shallow recession, though a continuing rise in a measure of housing costs could make it harder to avoid more drastic monetary tightening, Fannie Mae chief economist Doug Duncan told MNI.

The likely coming downturn could be more severe if inflation does not respond to Federal Reserve rate increases, Duncan said in an interview, ahead of an FOMC decision largely priced in by markets as a 75-basis-point hike.

Keep reading...Show less
694 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. unemployment looks set to rise substantially even if the Fed manages to steer the economy into only a shallow recession, though a continuing rise in a measure of housing costs could make it harder to avoid more drastic monetary tightening, Fannie Mae chief economist Doug Duncan told MNI.

The likely coming downturn could be more severe if inflation does not respond to Federal Reserve rate increases, Duncan said in an interview, ahead of an FOMC decision largely priced in by markets as a 75-basis-point hike.

Keep reading...Show less