Doubts Creep In About a Fed Rate Cut This Year By Hardika Singh
More traders are betting on only one or two rate cuts this year-or none. Meanwhile, oil prices are shooting higher again, and a tiny activist is trying to unseat BlackRock's founder Larry Fink. Read on for this news and more.
Top News Doubts Creep In About a Fed Rate Cut This Year
After the latest blockbuster jobs report Friday showed continuing strength in the economy, more traders are betting the Fed may cut the benchmark federal-funds rate just once or twice this year, fewer than officials' last median forecast of three quarter-point cuts. And a handful are even starting to wager that the central bank will leave rates where they are.
Brisk Hiring Bolsters Fed's Cautious Stance on Rate Cuts U.S. Economy Oil Is Hitting Its Highest Level in Months-Just in Time for Summer Driving Season
Drone attacks in Russia, unrest in the Middle East and strong consumer demand have propelled oil prices to their highest level in months, setting the stage for what could be a summer surge in gas prices. The rally in crude picked up speed this week after an Israeli strike on an Iranian diplomatic building fanned worries of a broader regional war.
Financial Regulation A Tiny Activist Fund Is Trying to Unseat Larry Fink
A small activist hedge fund is aiming to oust BlackRock founder Larry Fink as the chairman of the world's largest asset manager. London-based Bluebell Capital Partners has introduced a shareholder resolution that would amend BlackRock's bylaws to require that the chairman be an independent director, according to BlackRock's proxy statement filed Thursday with the Securities and Exchange Commission.
Forward Guidance Monday (all times ET)
11 a.m.: New York Fed Survey of Consumer Expectations
1 p.m.: Chicago Fed's Goolsbee on WBEZ-FM
Tuesday
6 a.m.: NFIB optimism index
Research March Report Suggests Canada Employers Squeezed By High Rates
Canada's weak employment report for March cements the case for a Bank of Canada rate cut no later than June, says Tu Nguyen, economist at tax and accounting firm RSM Canada. Waiting any longer than June could exert undue harm on an economy that's already sputtering amid high interest rates. "The reality is employers are squeezed by high interest rates and not hiring," she tells The Wall Street Journal, noting that youth unemployment rose in March to its highest level in eight years. Nguyen adds hiring might pick up in the second half of this year, once rate cuts have started.- Paul Vieira
Basis Points India's central bank kept its policy rate unchanged as the country's economic growth remains strong and inflation eases. Reserve Bank of India governor Shaktikanta Das said Friday that the monetary-policy committee decided to hold its policy repo rate steady at 6.50%. -
Kosaku Narioka Dallas Fed President Lorie Logan warned Friday that it was " much too soon to think about cutting interest rates" given the serious prospect that inflation might get stuck at a level that is too far above the central bank's 2% goal. Logan said she was "increasingly concerned" about the risk that inflation would stop its recent decline. She pointed to various measures of underlying inflation that strip out the most volatile items and show inflation running closer to 3% than to 2%. - Nick Timiraos The Philippine central bank kept its policy rate unchanged as widely expected, extending its pause as a recent pickup in inflation resurfaces concerns about price pressures in the country. - Kosaku Narioka Germany's industrial production rose more than expected in February, helped by a recovery in the construction and car industry, as the country looks to exit a recent manufacturing slump. - Ed Frankl About Us
WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [hardika.singh@wsj.com].
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
04-08-24 0716ET
