MNI China Daily Summary: Monday, July 1

MNI BRIEF: PBOC To Borrow CGBs In Response To Market Situation

MNI BRIEF: Caixin June Manufacturing PMI Hits Three-year High

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

EZ/UK T-Bill Calendar: Spain, Belgium, ESM Auction on Wednesday

MNI: US MAY CONSTRUCT SPENDING -0.1%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Powell On What Prompted Pivot Toward Greater Wariness On Inflation

FED

Q: What prompted your pivot toward greater wariness of inflation?

  • A: Powell goes through the timeline of data, calls it a "continual process". Said inflation popped up in Spring, and view "widely widely held" that it would be temporary or "transitory". Then in Sept after Labor Day " it started to become clear that this was both larger in its effect on inflation and more persistent. " They moved the taper forward; says they got the ECI reading on the eve of the November meeting, then got a "very strong" employment report afterwards, and then the CPI "a very high reading" and "
  • I honestly at that point really decided we needed to look at speeding up the taper, and we went to work on that so that's really what happened."- Says the view was widely supported by the Committee.
  • Again notes "wages are not a big part of the high inflation story that we're seeing." But points to real wages > productivity growth, and rent prices, as things they need to keep their eye on.
Energy BulletsCommoditiesFOMC Calendar Market News
Energy BulletsCommoditiesFOMC Calendar Market News

To read the full story

Close

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.