While the Fed anticipated that the end of the pandemic would temporarily push up inflation this year, Mr. Powell said Tuesday on Capitol Hill that the increases in prices have been larger than central bankers had expected and may prove more persistent. But he underscored his view that shortages-including of used cars, computer chips and workers-will fade over time, bringing inflation closer to the Fed's 2% long-run target.
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Derby's Take: New York Fed Boss Isn't Worried About Reverse Repo Surge
A tsunami of cash continues flooding into a once obscure Federal Reserve facility, and the central bank official closest to it isn't concerned in the slightest bit.
Over recent weeks, cash, largely from money-market funds but also from banks and government sponsored entities, has poured into what the Fed calls its reverse repo facility. After years of obscurity and disuse, interest in the facility increased in the spring. Ahead of last week's Federal Open Market Committee meeting, the facility was seeing inflows of half a trillion dollars a day.
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The Bonds That Cried Major Default Risk
The villagers in "The Boy Who Cried Wolf," bored of their shepherd boy's constant false alarms, refuse to come to his aid when a wolf finally does appear. There may be a lesson in the fable for investors in Chinese property giant Evergrande and the country's real-estate market more broadly.
Heavily leveraged Evergrande is in the midst of yet another financial squeeze. The company announced Sunday and Monday that it has recently sold almost $1 billion of holdings in two companies-internet services firm HengTen Networks and smaller real-estate developer China Calxon. Fitch Ratings cut Evergrande's credit rating Tuesday from B+ to B, noting the company's seemingly limited access to capital markets and growing dependence on less stable shadow-banking loans.
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China Investigates Bulk Commodity Prices and Supplies
China's top economic planner and market regulator have sent teams to investigate recent price and supply trends of bulk commodities, the latest move by Beijing to rein in the sector's sharp rally this year.
The groups, made up of officials from the National Development and Reform Commission and the State Administration for Market Regulation, will visit various cities and provinces to find out more about spot trading in commodities and the recent upstream supply and price changes, the NDRC said Wednesday.
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Millions of Americans Refinanced Last Year-but Fewer Black and Latino Homeowners Did
Refinancings were popular in 2020, but not every household caught the wave.
From January to October of last year, only 6% of Black borrowers refinanced their mortgages, versus 12% of white borrowers. The findings appear in a new report by economists at the Federal Reserve Banks of Atlanta, Philadelphia and Boston.
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Infrastructure Talks Focus on How to Pay for Bipartisan Package
WASHINGTON-Lawmakers and the White House searched for ways to finance a roughly $1 trillion infrastructure proposal without raising the gas tax or placing fees on electric vehicles, debating how much new revenue the Internal Revenue Service could generate with enhanced enforcement efforts.
The infrastructure proposal, which includes $579 billion in spending above expected federal levels and would total $973 billion over five years, has won the backing of 11 Republican senators and 10 members of the Senate Democratic caucus. A group of 10 of the lawmakers met repeatedly Tuesday with top White House officials as the group aimed to prepare a plan for public release, with talks set to continue.
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North Korea Gives the U.S. the Cold Shoulder on Nuclear Talks
SEOUL-In nuclear diplomacy with the U.S., North Korea is playing hard to get, for now.
The Kim Jong Un regime this year has rebuked the Biden administration's outreach for engagement, without detailing what might woo them back to talks beyond vague demands. As diplomacy stalls, Pyongyang is adding to its nuclear arsenal, which President Biden has called the biggest foreign-policy threat facing the U.S.
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Illicit Covid-19 Drugs Bound for Mexico Seized by U.S. Authorities
Federal authorities have seized at U.S. airports unauthorized versions of the Covid-19 treatment remdesivir destined for distribution in Mexico, the latest effort by the government to root out criminal activity related to the pandemic.
Counterfeit or generic versions of remdesivir, an antiviral manufactured by Gilead Sciences Inc., are arriving in the U.S. by plane from Bangladesh and India and being smuggled by individuals to Mexico for patients willing to pay top dollar for the drugs, people familiar with the investigation said.
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Biden to Say Cities Can Use Covid-19 Aid to Hire More Police Officers
WASHINGTON-President Biden is expected to lay out his crime-prevention strategy Wednesday amid a rise in gun violence in many cities, as Republicans seek to tie the increase in crime to calls for cuts to police departments.
Mr. Biden will emphasize that state and local officials in areas experiencing surges in gun violence can use $350 billion in Covid-19 funding to hire more law-enforcement personnel, even if it raises the total number beyond its pre-pandemic level, officials said.
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U.S. Seizes Internet Domains Tied to Iran's Government
WASHINGTON-More than 30 web domains linked to the Iranian regime were seized by U.S. agencies on Tuesday, a U.S. government official said.
The U.S. seized sites operated by government-run PressTV as well as social media channels affiliated with Iran-backed militias in Iraq. The seizures come as the Biden administration is in the midst of negotiations over Tehran's nuclear program and follow the election of a new president who has rebuffed calls from Washington to curb its support for proxies fighting across the region.
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Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
- Empire Co. Ltd. (EMP.A.T) 4Q
Economic Indicators (ET):
0830 Apr Retail trade
Stocks to Watch:
No items published
Other News:
Ontario Teachers' Invests in CD Finance's CNY1 Bln Fundraising
CD Finance has raised 1 billion yuan (US$154.3 million) in its latest fundraising round led by Ontario Teachers' Pension Plan Board.
Market Talk:
No items published
Expected Major Events for Wednesday
00:30/JPN: Jun Japan Flash Manufacturing PMI
05:00/JPN: Apr Indexes of Business Conditions - Revision
07:15/FRA: Jun France Flash PMI
07:30/GER: Jun Germany Flash PMI
08:30/UK: Mar Card Spending statistics
08:30/UK: Jun Flash UK PMI
11:00/US: 06/18 MBA Weekly Mortgage Applications Survey
12:30/US: 1Q International Transactions
12:30/CAN: Apr Retail trade
13:45/US: Jun US Flash Manufacturing PMI
13:45/US: Jun US Flash Services PMI
14:00/US: May State Employment and Unemployment
14:00/US: May New Residential Sales
14:30/US: 06/18 EIA Weekly Petroleum Status Report
23:50/JPN: May Services Producer Price Index
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Wednesday
AEterna Zentaris Inc (AEZS,AEZS.T) is expected to report for 1Q.
Clairvest Group Inc (CVG.T) is expected to report for 4Q.
Empire Co (EMLAF,EMP.A.T) is expected to report $0.66 for 4Q.
Genesis Healthcare Inc (GENN) is expected to report $-0.33 for 1Q.
HB Fuller Co (FUL) is expected to report $0.90 for 2Q.
KB Home (KBH) is expected to report $1.33 for 2Q.
Neptune Wellness Solutions Inc (NEPT,NEPT.T) is expected to report for 4Q.
Patterson Companies (PDCO) is expected to report $0.42 for 4Q.
Raymond James Financial (RJF) is expected to report.
Steelcase Inc (SCS) is expected to report $-0.29 for 1Q.
TransGlobe Energy (TGA,TGL.T) is expected to report.
Winnebago Industries Inc (WGO) is expected to report $1.64 for 3Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
American Woodmark Raised to Buy From Hold by Loop Capital
Ball Corp Raised to Overweight From Neutral by Atlantic Equities
Casey's General Stores Cut to Neutral From Buy by Goldman Sachs
CrowdStrike Holdings Raised to Buy From Hold by Stifel
Delek US Raised to Neutral From Sell by Goldman Sachs
Evergy Cut to Equal-Weight From Overweight by Wells Fargo
FirstCash Cut to Underperform From Outperform by Credit Suisse
Fortune Brands Raised to Buy From Hold by Loop Capital
Lincoln Electric Raised to Outperform From Perform by Oppenheimer
Plexus Raised to Buy From Neutral by Sidoti & Co.
Raven Industries Cut to Hold From Buy by Lake Street
Satsuma Pharmaceuticals Raised to Buy From Neutral by Mizuho
SharpSpring Cut to Hold From Buy by Lake Street
Welbilt Cut to Neutral From Outperform by Baird
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
06-23-21 0607ET
