MNI: POWELL SAYS PCE INFLATION CAME IN LINE WITH EXPECTATIONS

MNI China Daily Summary: Friday, March 29

MNI: PBOC Injects Net CNY148 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.0950 Fri; -4.70% Y/Y

CHINA PBOC INJECTS CNY150 BILLION VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.0950 FRI VS 7.0948

MNI: US FEB PERSONAL INCOME +0.3%; NOM PCE +0.8%

HICP Tracking at 2.4%Y/Y - One tenth below consensus

HICP 2 tenths softer than expected, but partly on clothing prices

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

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

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Questions On Recession Risks & Potentially Overtightening

FED
  • Question on the 3M vs 18M spread and recession risks. Also Q re the risk of doing too little vs doing too much
  • A: We do monitor the near-term forward spread; it's been our preferred measure, dominates the ones people look at. It's not inverted. You have to look at why it's doing what it's doing: could be because it expects cuts, or expects inflation to come down. Yes we monitor it.
  • Time has passed and we've raised 375bp. I wouldn't change a word in that statement re doing too little vs doing too much. If we overtighten we have the ability with our tools to support economic activity if that's necessary. In the other hand if you make a mistake in the other direction then it's a year or two down the road, realizing you didn't get it; the risk is inflation is entrenched in peoples' thinking. Employment costs go up with the passage of time.
  • We're farther along now, and now focused on, what's the level we need to get rates. Don't know what we'll do when we get there, by the way. The first thing is to find your way there.
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