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EGB Supply for W/C Jul 26

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Pullback Considered Corrective

US TSYS SUMMARY

What a Short, Strange Trip It's Been

GLOBAL POLITICAL RISK

Pfizer, Moderna Jabs Retain High Trust; AZ, Sputnik Lower

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Trend Indicators Remain Bearish

     WASHINGTON (MNI) - The following is the portion of a transcript from
Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting
Wednesday:
     Q: Given this sustained level of low inflation even in this country, do you
think -- there seems to be a higher possibility that lower expected -- lower
inflation expectation will remain going forward. Do you think a Japan-like
situation or Japan (inaudible) of chronically low inflation and interest rates
the U.S. is getting trapped by the Japanification of this situation? Do you
think so?
     A: So we, of course, have watched the situation in Japan and now the
situation in Europe and we note that there are significant disinflationary
pressures around the world. If we look at our current inflation performance it
hasn't been anything like what we seen in those other places. But we don't --
again we don't think we are exempt from those pressures. And we are therefore
strongly committed to having inflation expectations anchored at level that is
consistent with a symmetric 2% inflation objective. That's what we are committed
to. We take the risk very seriously. It is not -- the risk is not that inflation
might run a couple tenths below 2%. Very hard to get off. One inflation
expectations start sliding down inflation moves down you have less interest
rates move down as well. Because there is inflation component in interest rates
and we think the right thing to do is to do what we can now to hold and really
move inflation expectations up so that they are squarely and firmly on cored a
the a level that consistent with 2% inflation.
--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com
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