![]() Wrightson ICAP’s Lou Crandall: Would the Fed consider relaxing the blackout rules for the September meeting? “Powell said in his June press conference that it was very unusual for a surprise to change the policy outlook as drastically during the blackout period as the CPI did last month. For example, is he worried that the prolonged energy price hikes suggest it takes more resources to make the same amount of stuff than we thought it would?” Hamilton Project’s Wendy Edelberg: “I would ask Powell what he thinks he is learning about potential output from the continued supply shocks. and Chair Jerome Powell’s press conference at 2:30 p.m.ĪSK JAY - What should reporters ask the Fed chief at this post-meeting press conference today? Three good suggestions: … House Financial Services committee marks up legislation at 10 a.m. … Commodity Futures Trading Commission virtual meeting at 9:30 a.m. and pending home sales data released at 10 a.m. June durable goods orders released at 8:30 a.m. #DAIRY AGENDA TODAY PLUS#And send your questions, plus any tips or stories ideas, to, or. IT’S WEDNESDAY - Happy Fed Day to all who celebrate! Remember to eat a good breakfast. ‘What we are trying to do is explain things in a much more nuanced way than most people are getting from the daily news flow.’” “‘I don’t think any of us are trying to convince anyone that their feelings about the economy are wrong,’ Jared Bernstein, a member of the Council of Economic Advisers and one of Biden’s longest-serving aides, said in an interview. “But White House officials admit that changing people’s minds is a daunting task as the highest inflation in four decades severely cuts into wages even as the economy continues to churn out jobs and Americans keep spending. SELLING A HEALTHY ECONOMY - Meanwhile, the White House is scrambling to get ahead of tomorrow’s GDP data release, which could show the economy contracted for the second straight quarter - an oft-cited, though by no means the only, definition of a recession.įrom our Ben White: “Senior administration officials are hitting the airwaves and arm-twisting reporters in private, imploring anyone who will listen that the economy - despised by majorities of both Republicans and Democrats fed up with inflation - is still healthy. Unlike mortgages, which are often long-term and fixed-rate, card rates tend to move up alongside the Fed’s moves.” Housing: “Builders have begun pulling back from new construction housing starts fell 8.1 percent in June after dropping 9 percent in May, which is leading to job losses and could exacerbate affordability problems in a market that's already lacking supply.”Ĭredit cards: “The average annual rate for a new credit card is up 1.3 percentage points from last year, an unusually large increase that is the biggest since 2011, according to Bankrate. “Still, about 600 larger companies that employ more than a million workers could be at risk of default if the Fed carries out its plans for raising borrowing costs, based on figures from the Swiss bank UBS.”Ī run-up in interest rates is already being felt in the housing sector, as builders pull back from new construction. Three areas where we’re already seeing the fallout from tighter policy, per Victoria:īroke businesses: “Rock-bottom interest rates during the pandemic helped many companies lock in cheaper debt, meaning the prospect of bankruptcies is not as dire as it might have been. And while they’re raising rates faster and higher than anyone expected at the beginning of the year, they still have a ways to go.īut those moves, and the expectations for further interest-rate increases, are already having the desired effect now, our Victoria Guida writes. Just getting started - Federal Reserve officials are expected to approve another supersized rate increase at the end of their two-day policy meeting today. #DAIRY AGENDA TODAY PRO#The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. #DAIRY AGENDA TODAY FREE#By KATE DAVIDSON, SAM SUTTON and AUBREE ELIZA WEAVERĮditor’s note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. ![]()
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