Daily Archives: May 5, 2022 at 07:23 am EDT

Peak Inflation Still Doesn’t Look Imminent

The Federal Reserve, as expected, raised its policy rate by 50-basis-points yesterday to a 0.75%-to-1.0% range, signaling to the market that the central bank is resolved to fight inflation. But there’s a long road ahead and the Fed remains well behind the curve as inflation continues to run hot. The key question: Will the central bank catch a break as inflation begins to peak?

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Macro Briefing: 5 May 2022

* Analysts raise concerns on risk of new Russian escalation of war on Ukraine
* US 10yr Treasury yield pulls back from 3.0% after Fed’s 50-basis-point rate hike
* Rate hikes in US will create headwinds for foreign economies
* Falling US jobless rate may complicate Fed’s strategy to fight inflation
* Surging energy prices lift oil giant Shell quarterly profit to 14-year high
* European companies are rethinking investing in China
* China’s economic contraction accelerated in April via PMI survey data
* German factory orders fell again in March, posting biggest drop in 5 months
* US ISM Services Index slipped in April but still reflects solid growth
* US hiring at companies slows more than expected in April: