"Given the state of the economy, with inflation at a 40-year high and the unemployment rate near record lows, moving expeditiously to a neutral stance of policy is appropriate," Ms. George said Wednesday in a virtual appearance. She noted that while there is uncertainty around what level short-term interest rates neither stimulate nor restrain economic activity, she currently estimates the neutral rate to be around 2.5%, well above where the Fed's interest-rate target now lies.
U.S. Trade Chief Outlines Policy Shift, Citing Ukraine War and Pandemic
WASHINGTON-U.S. Trade Representative Katherine Tai said Wednesday that the U.S. must shift the focus of its trade policy to rebuilding its domestic manufacturing industries, and lessening ties to unfriendly economies.
Appearing before the House Ways and Means Committee, Ms. Tai said that global events such as Russia's invasion of Ukraine and the supply-chain disruptions triggered by the Covid-19 pandemic point to the need for new priorities.
Biden Considers Invoking Defense Production Act to Boost Minerals for EV Batteries
President Biden is considering invoking the Defense Production Act as soon as this week to boost domestic production of minerals used in batteries needed for electric vehicles and other clean-energy technology, said people familiar with his plans.
The administration would include minerals like lithium, nickel and graphite, cobalt and manganese under the Korean War-era national security mobilization law, the people said. The designation could help mining companies access government funding for feasibility studies on mining development, productivity and safety improvements, or on how to wring more of these metals out of ore already produced at facilities operating in the U.S. It could also prompt Congress to dedicate more money to such efforts, the people said.
EU Is Considering New Russian Bank Sanctions, Diplomats Say
European countries are weighing new steps to raise pressure on Russia's economy including targeting more banks and other family members of oligarchs, say diplomats and officials familiar with discussions.
The efforts come as the U.S. and the European Union prepare joint task forces aimed at ensuring the sanctions already announced on Russia over its invasion of Ukraine can be effectively implemented. The trans-Atlantic efforts include work to pressure third countries that are making it possible for Russian people and companies to move assets located outside Russia beyond the reach of Western sanctions.
Putin's Scheme to Rally the Ruble Could Run Out of Gas
After making the ruble unpalatable to investors and savers, President Vladimir Putin is trying to engineer extra demand for the Russian currency from its only remaining market: captive commodity buyers. But that well may be almost dry.
On Wednesday the ruble rose back to around where it was on Feb. 24, the day Russia first invaded Ukraine, both against the U.S. dollar and the euro. Capital controls and interest rates increasing to 20% from 9.5% are among the reasons why the exchange rate has decoupled from the Russian economy, which is forecast to contract 5.7% this year due to the West's sanctions, according to FocusEconomics.
Ukraine Proposal for NATO-Style Security Guarantee Greeted With Skepticism
Western officials are balking at Ukraine's proposal for a NATO-style mutual-defense pledge that could draw their military forces into a war with Russia, even as they expressed some receptiveness to the idea of international security guarantees as part of a deal to end hostilities.
At peace talks in Istanbul on Tuesday, Ukrainian negotiators handed Russia a detailed proposal of a neutral status for Ukraine with its security guaranteed by the U.S., U.K., France, Turkey, Germany, Canada, Poland and Israel. The Ukrainian proposal would ask countries to respond to a violation of its sovereignty the way members of North Atlantic Treaty Organization would act under Article 5, the alliance's mutual-defense promise.
Russia 'Singling Out' Americans for Harassment, State Dept. Warns
Russian authorities have "singled out" U.S. citizens in Russia for harassment, U.S. authorities said in a warning that underscores the physical and security risks companies still operating in the country face.
Russian security services have targeted U.S. citizens for "detention and/or harassment," the U.S. State Department on Tuesday said in an updated warning to Americans that cautions against all travel to the country.
Europe Woos Qatar for an Alternative to Russian Gas
DOHA, Qatar-This tiny Persian Gulf kingdom is emerging as one of Europe's best hopes for weaning itself off Russian natural gas, in another sign of how the war in Ukraine is changing the world's energy relationships.
Germany, France, Belgium and Italy are in talks with Qatar to buy liquefied natural gas on a long-term basis, said Qatari and European officials. Germany's Economy Minister Robert Habeck flew to Qatar this month to announce an energy partnership and a commitment to build his country's first-ever terminal to receive shipments of liquefied natural gas from Qatar and other gas producers.
Europe's Expulsion of Russian Officials Aims to Disrupt Alleged Spy Networks
The expulsion of 43 Russian diplomats from four European countries on Tuesday was part of a push to disrupt Russian intelligence networks in Europe and didn't result from a specific threat, people familiar with the situation said.
A senior European diplomat said that a number of European capitals had been coordinating a pushback against the Kremlin's intelligence networks in the bloc since Russian forces invaded Ukraine last month and that further expulsions could follow in coming days.
Shares of Martin Sorrell's S4 Capital Plunge After Auditing Delay
Martin Sorrell's S4 Capital PLC lost more than one-third of its market value after disclosing late Wednesday that its auditor needed more time to certify its results, fueling investor concerns about the advertising firm's footing.
The London-listed digital advertising and marketing-services group said it was informed in the afternoon that its auditors, PricewaterhouseCoopers LLP, "were unable to complete the work necessary for S4 Capital to release the preliminary statement tomorrow morning."
ECB Looks Increasingly Likely to Raise Rates This Year
Markets are becoming increasingly confident that the European Central Bank will start raising interest rates this year, fuelled by a relentless rise in inflation and tentative signs of a de-escalation of the war in Ukraine.
Money markets expect the ECB's deposit rate, currently at -0.50%, to rise to around 0.10% by the end of 2022, according to Refinitiv data. This is more than the maximum 50 basis-point increase the market had expected before Russian troops invaded Ukraine on Feb. 24.
Intel Gave CEO Pay Package Worth Nearly $180 Million Amid Turnaround Effort
Intel Corp. awarded Chief Executive Officer Pat Gelsinger compensation last year that could be worth nearly $180 million, tying much of it to whether his sweeping turnaround effort at the chip giant sparks a sharp improvement in its stock price.
The pay package of $178.6 million for 2021, disclosed Wednesday in Intel's annual proxy filing Wednesday with the Securities and Exchange Commission, ranks Mr. Gelsinger second among S&P 500 company CEOs as of Wednesday. Only Discovery Inc. CEO David Zaslav received more, at $246.6 million, according to SEC filings. In a distant third place is Apple Inc. CEO Tim Cook, at almost $100 million last year.
Auto Makers Back EPA's Tougher Tailpipe Standards
WASHINGTON-Auto makers on Wednesday signaled their support for the Biden administration's stricter air pollution standards for passenger cars, stating in court papers that they will back environmental regulators in defending the higher standards.
The Alliance for Automotive Innovation, the top lobbying group for auto makers and suppliers, petitioned the U.S. Court of Appeals in Washington, D.C., to join the U.S. Environmental Protection Agency in defending the tougher standards against a legal challenge.
Write to sarka.halas@wsj.com
Expected Major Events for Thursday
04:30/NED: Feb Retail turnover
06:00/UK: 4Q Balance of Payments
06:00/DEN: 4Q Revised GDP
06:00/DEN: Feb Unemployment
06:00/UK: 4Q UK quarterly national accounts
06:00/GER: Feb Retail Trade
06:00/UK: Mar Nationwide House Price Index
06:30/SWI: Feb Retail Sales
06:45/FRA: Feb PPI
06:45/FRA: Feb Household consumption expenditure in manufactured goods
06:45/FRA: Mar Provisional CPI
07:00/HUN: Feb PPI
07:00/TUR: Feb Foreign Trade
07:55/GER: Mar Labour market statistics (incl unemployment)
08:00/ITA: Feb Unemployment
08:30/UK: 4Q Business investment revised results
09:00/CRO: Feb Industrial Production Volume Index
09:00/CYP: Feb PPI
09:00/GRE: Jan Turnover Index in Retail Trade
09:00/ITA: Mar Provisional CPI
09:00/ITA: Mar Cities CPI
09:00/EU: Feb Unemployment
10:00/POR: Feb Retail trade
12:00/POL: 4Q Quarterly Balance of Payments
12:30/CZE: Czech interest rate decision
13:00/BEL: 4Q Balance of Payments
16:59/SPN: Feb Budget deficit
16:59/SPN: Jan Monthly Balance of Payments
16:59/SPN: Jan Budget deficit
16:59/SPN: Dec Budget deficit
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
03-31-22 0034ET