Macro Briefing: 21 April 2023

* Pentagon prepares to evacuate US embassy staff in Sudan as civil war escalates
* Eurozone economic growth rebounds to 11-month high in April via survey data
* US home sales down 2.4% in March vs. and 22% lower vs. year-ago level
* Mega-cap stocks are leading the recent rally in the equities market
* Money market funds are offering relatively high yields, but there are risks
* US jobless claims edge higher, hint at softening jobs market
* Philly Fed Mfg Index falls to lowest level since pandemic was raging
* US Leading Economic Index fell deeper into the recession zone in March:

The Federal Reserve’s target rate needs to rise above 5%, says Cleveland Fed President Loretta Mester. “I do think that given how stubborn inflation is and given the still strong labor market, I do think that rates are going to have to move up to above that 5% level,” she tells Yahoo Finance. Mester, a non-voting member of the central bank on policy decisions, explains: “What we really need to do is we need to make sure that we get that inflation rate on that sustainable downward path. That’s my focus. The tightening of credit conditions, either from the Fed or perhaps from banks, tightening their lending standards, that’s more of a mechanism for getting that done.”