The Waiting Game By Hardika Singh
Higher interest rates might be here for a while, Federal Reserve Chair Jerome Powell said Tuesday. Meanwhile, Biden and Trump are taking competing protectionist approaches against Beijing. And fund fanager Bill Hwang of Archegos maintains his trading practices were lawful. Read on for this news and more.
Top News Powell Maintains Wait-and-See Posture on Inflation and Rates
The Fed chair affirmed the central bank's plans to hold interest rates at the highest level in more than two decades as it awaits evidence that a slowdown in inflation will resume after setbacks this year.
CPI Today: Inflation Report in Limelight U.S. Economy Biden Levies Sweeping Tariffs on China, Intensifying Trade Fight With Trump
One day after news broke that President Biden was planning to raise tariffs on Chinese electric vehicles to roughly 100%, Donald Trump moved to one-up his rival for the White House.
"I will put a 200% tax on every car that comes in from those plants," the former president said at a rally in New Jersey on Saturday, referring to Chinese vehicles manufactured in Mexico. Biden, he suggested, was ripping off his tariff-focused trade agenda. "Biden finally listened to me," Trump said. "He's about four years late."
Financial Regulation Archegos Was a 'House of Cards,' Prosecutor Tells Jury
The trial of Archegos Capital Management founder Bill Hwang began Monday with prosecutors telling a federal jury that the former fund manager manipulated markets and defrauded banks in the lead-up to the meltdown of his firm.
Forward Guidance Wednesday (all times ET)
8:30 a.m.: U.S. retail sales for April
8:30 a.m.: U.S. CPI for April
Thursday
8:30 a.m.: U.S. housing starts for April
9:15 a.m.: Fed reports U.S. industrial production for April
3:50 p.m.: Atlanta Fed's Bostic speaks on economic outlook in Jacksonville, Fla.
Research Fund Managers Reduce Cash Holdings, Boost Allocation to Stocks, Commodities
Global fund managers' average cash holdings fall to a three-year low of 4.0% in May, while stock allocation is the highest since January 2022, Bank of America's May global fund manager survey finds. In the previous month, it stood at 4.2%. In May, the fund manager survey said allocation to stocks increased by 7 percentage points to net 41% overweight. Investors also increased their allocation to commodities to a net 13% overweight - the largest overweight since April 2023 - from a net 11% overweight. - Emese Bartha
Basis Points Producer prices rose 0.5% in April from the prior month, according to the Labor Department. That was a stronger reading than analysts expected. Economists surveyed by The Wall Street Journal had forecast that the producer-price index would increase by 0.3%. March's reading was revised lower, to a 0.1% decline from an earlier estimate of a 0.2% increase. - Harriet Torry After one of the world's top copper producers recently hit a financial crunch , the Biden administration started huddling with potential investors about taking a stake in the company's Zambian mines worth as much as $3 billion. The search isn't restricted to American companies, with entities from the United Arab Emirates, Japan and Saudi Arabia - all viewed as friendly to U.S. interests - expressing interest in the stake in First Quantum Minerals' assets, according to people familiar with the matter. - Julie Steinberg China's central bank held key policy rates steady , a move that could preface a hold on benchmark lending rates later this month. The economies of central Europe are set for stronger growth this year and next as inflation cools, but Russia's invasion of Ukraine will continue to cast a shadow over their prospects in the form of higher borrowing costs, the European Bank for Reconstruction and Development said Wednesday. - Paul Hannon The eurozone's annual rate of inflation is set to fall faster than previously expected as economic growth remains anemic, and hit the European Central Bank's target earlier in 2025, the European Union forecast. - Joshua Kirby About Us
WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [hardika.singh@wsj.com].
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
05-15-24 0719ET
