That rally has since faded with Fed chair Jerome Powell warning that the Fed’s single-minded fight to tame inflation could lead to economic pain.
July’s CPI report showed a surprising moderation in prices that helped spur a rebound in stocks. inflation data is one of the last – and perhaps the most important – pieces of data that will help the Fed decide how aggressively it needs to hike rates in September. Meanwhile more oil-importing countries – for example India – are considering joining the Group of Seven wealthy nations’ plan to cap the price of Russian oil, Washington said.
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A plan from Britain’s new government could cost as much as 150 billion pounds, sending its currency to near-four decade lows.Įuro zone energy ministers gather on Friday in Brussels to set plans in motion and discuss options – including gas price caps and emergency credit lines for energy market participants, though there are no pain free solution in sight. Governments are spending hundreds of billions of euros to help consumers and businesses cope with runaway bills. Policy makers will have a few more datapoints to chew over before then, including economic output figures for July on Monday, the latest job market readings on Tuesday and August inflation on Wednesday.įaced with soaring energy prices that threaten to spark social unrest, necessitate rationing and inflict a recession, Europe’s leaders are scrambling to pull together radical plans to counter Russian President Vladimir Putin’s gas cut-off.
Many economists think the BoE will raise interest rates by a further 50 basis points – normally a huge increase but less than the 75 bps rate hike that investors had been betting on increasingly until a few days ago. The measures will bring down price pressures in the short-term but could stoke them further ahead as consumers are spared the worst of the hit to their finances. The Bank of England meets on Thursday and must gauge the implications for inflation from the government’s huge energy bill bailout of households. Here is a look at the week ahead in markets from Kevin Buckland in Tokyo, Emma-Victoria Farr in Frankfurt, Bill Schomberg, Vincent Flasseur and Karin Strohecker in London, and Lewis Krauskopf in New York. inflation data should provide the last piece in the puzzle ahead of the Federal Reserve’s September meeting.Ĭhina meanwhile is trying to get banks to help spur the economy and Volkswagen seems set to embark on listing luxury car maker Porsche against a volatile markets backdrop. Leaders across Europe are scrambling to keep the lights on and U.S. (Reuters) – The Bank of England will ponder implications of the government’s record-breaking energy package as the country mourns the passing of its queen.
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