Macro Briefing: 15 June 2023

* Fed’s Powell sees progress on taming inflation, but says more hikes still possible
* US housing market is tight because most homeowners have low mortgage rates
* China industrial output grows less than expected in May
* China central bank cuts its key medium-term lending rate
* EU suggests breaking up Google’s ad business in preliminary antitrust ruling
* US wholesale inflation fell more than expected in May
* Fed leaves interest rates unchanged but expects more hikes ahead:

Federal Reserve Chairman Jerome Powell, speaking at yesterday’s press conference, said he’s “not seeing a lot of progress” in taming inflation, based on the core reading of the Personal Consumption Expenditures Price Index, a key metric for the central bank. It’s “not the kind of progress we want to see.” But while core PCE’s one-year change has remained steady in recent months, and ticked up to 4.7% in April, more recently published inflation measures through May suggest core PCE may edge lower in the upcoming release.