An ICYMI from Fitch rating agency overnight, with comments that will take no one by surprise. In brief: The lockdown in Shanghai will exacerbate global supply-chain pressures and inflation concerns Restrictions imposed as part of China’s zero-Covid-19 policy have led to a plunge in Shanghai freight traffic volume in April and early May. With fewer
Fed’s path will not necessarily cause a recession Fed needs to get inflation under control Inflation is high, persistent and broad based Getting inflation close to Fed’s goal creates certainty that enables growth and supports maximum employment Demand is strong and looks to remain robust A number of pandemic-era inflation pressures will eventually settle Rising
Remarks by New York Fed president, John Williams Justin Low Tuesday, 10/05/2022 | 11:39 GMT-0 10/05/2022 | 11:39 GMT-0 Resolutely focused on restoring price stability We have a “sizzling” hot labour market Fed task is difficult but not insurmountable Fed actions will cool demand and factors contributing to supply shortages will be resolved Fed needs