binance left Coinmarketcap net_left adver left

Powell, Brainard hearings may shine light on inflation risks, broader Fed debates

Monday, January 10, 2022

By Howard Schneider

WASHINGTON (Reuters) - A U.S. Senate committee holds hearings this week for Federal Reserve Chair Jerome Powell and vice chair nominee Lael Brainard that could provide new details about the U.S. central bank's plans to tighten monetary policy, but also kick off a broader debate in coming weeks about its role in addressing issues as disparate as climate change and racial inequality.

Powell appears before the Senate Banking Committee on Tuesday for consideration to a second four-year term as head of the Fed; Brainard, currently a Fed governor, will be questioned by the same panel on Thursday for promotion to a four-year term as Fed vice chair. The positions require majority approval by the full Senate, which is narrowly controlled by President Joe Biden's Democrats, with the committee hearings a first step.

The jobs are among the two most important in the U.S. and global economies, and top of mind at the hearings will be the Fed's plans for raising interest rates and possibly reducing its more than $8 trillion in bond holdings to curb inflation that has sped far beyond the central bank's 2% target.

Powell, in prepared remarks for delivery at the hearing that were released by the Fed on Monday, pledged to use the central bank's full suite of policy tools "to prevent higher inflation from becoming entrenched."

"The economy is expanding at its fastest pace in many years, and the labor market is strong," Powell said. But the strength of the recovery is "giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation. We know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials."

The issue has become politically troubling for Biden, with price increases undermining wage gains for many workers, cited by Republicans as stemming from Biden's ambitious spending, and acknowledged by Democrats as evidence the reopening of the economy is not going so smoothly.

The Fed in December flagged plans to tighten policy faster than expected in response, with a rate hike perhaps as soon as March. But that was before it became clear just how fast the Omicron variant of the coronavirus would spread, with this week's hearings the first opportunity for Powell and Brainard to say how the current outbreak of the disease and the consequent disruptions to school and commerce have influenced their outlook.

Economists, if anything, have tilted in a hawkish direction, and in recent days intensified their view that the Fed would move sooner and at a quicker pace to tame price increases that show no sign of moderating on their own. The Consumer Price Index is expected to have increased around 7% in December from a year earlier, according to a Reuters poll of economists, a level not seen since the high inflation scares of the late 1970s and early 1980s. The data will be released on Wednesday.

"The Fed's growing discomfort with higher inflation is currently outweighing any concerns about downside risks from the Omicron variant," Oxford Economics economists Nancy Vanden Houten and Kathy Bostjancic wrote recently.

Financial markets are clearly positioning for a Fed that is prepared to be more aggressive in its response to inflation.

Bond markets are rapidly repricing for a higher interest rate environment, with yields on Treasury securities marching upward and bondholders suffering deep losses in the first week of 2022. Riskier assets like stocks and even cryptocurrencies - a relatively new asset class with scant experience confronting a Fed tightening cycle - have also nosedived in the early days of the year.

FAMILIAR FACES

Biden's decision to appoint two Washington and Fed policy veterans to the central bank's top jobs was in part a vote for continuity and bipartisanship at a critical moment for the U.S. recovery from the pandemic - incomplete in many ways but bedeviled by rising prices, disruptions to the supply chain for goods, and constrained by some workers' reluctance to take jobs.

Powell, a Republican, and Brainard, a Democrat, are familiar personalities on Capitol Hill who have cleared prior votes in the Senate, worked closely on the Fed's massive response to the coronavirus crisis, and more lately collaborated on plans to exit those support programs as inflation surged.

But the nominations also signal change. Brainard has been vocal as a Fed governor about the central bank's need to analyze and ultimately address the potential impact climate change could have on financial institutions, equity values and other aspects of the economy - views that align with Biden and which she would be in a stronger position to advocate as vice chair.

Other coming Fed appointments by Biden, including to the open position of vice chair for financial regulation, are expected to reinforce the importance at the central bank of climate and other issues like the impact of inequality on the economy, and possibly produce the first majority-female Fed board in the central bank's history.

Republicans may focus questions to Brainard about her climate views; Powell may face tough questions from some Democrats, notably Senator Elizabeth Warren, who has already announced plans to oppose his nomination for what she sees as a too-lax approach to regulating big banks.

Leave your comment
ig right nyse right Neteller adver right
APPROVED BROKERS
rakuten_main right top net_home_top ig_main right top Binance _ main right top fbs_main right top tifia_main right top
24-01-2022 06:08:48 (UTC+7)

EUR/USD

1.1318

-0.0022 (-0.19%)

Summary

Neutral

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (2)

EUR/USD

1.1318

-0.0022 (-0.19%)

Summary

Neutral

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (2)

GBP/USD

1.3504

-0.0050 (-0.37%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (8)

Sell (0)

USD/JPY

113.76

+0.08 (+0.07%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

AUD/USD

0.7139

-0.0044 (-0.62%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (1)

USD/CAD

1.2600

+0.0019 (+0.15%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (10)

EUR/JPY

128.74

-0.17 (-0.13%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

EUR/CHF

1.0319

-0.0014 (-0.14%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

Gold Futures

1,839.05

+7.25 (+0.40%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Silver Futures

24.113

-0.207 (-0.85%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

Copper Futures

4.4450

-0.0790 (-1.75%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (1)

Crude Oil WTI Futures

84.99

-0.15 (-0.18%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (11)

Sell (0)

Brent Oil Futures

86.98

-0.10 (-0.11%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (10)

Sell (0)

Natural Gas Futures

3.749

-0.033 (-0.87%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

US Coffee C Futures

233.15

-4.75 (-2.00%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Euro Stoxx 50

4,145.55

-84.01 (-1.99%)

Summary

Neutral

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (6)

Sell (1)

S&P 500

4,397.93

-84.80 (-1.89%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

DAX

15,328.05

-275.83 (-1.77%)

Summary

Neutral

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (4)

Sell (1)

FTSE 100

7,400.51

-93.62 (-1.25%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

Hang Seng

24,656.46

-309.09 (-1.24%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (5)

Sell (1)

US Small Cap 2000

1,987.92

-36.12 (-1.78%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (3)

IBEX 35

8,536.95

-157.75 (-1.81%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

BASF SE NA O.N.

65.175

-1.005 (-1.52%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (1)

Bayer AG NA

51.09

-0.53 (-1.03%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (8)

Sell (0)

Allianz SE VNA O.N.

219.38

-2.32 (-1.05%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

Adidas AG

245.45

-5.15 (-2.06%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (0)

Deutsche Lufthansa AG

6.721

-0.188 (-2.72%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (7)

Sell (1)

Siemens AG Class N

141.40

-3.12 (-2.16%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

Deutsche Bank AG

11.117

-0.361 (-3.15%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (1)

 EUR/USD1.1318Neutral
 GBP/USD1.3504↑ Buy
 USD/JPY113.76↑ Buy
 AUD/USD0.7139↑ Buy
 USD/CAD1.2600↑ Sell
 EUR/JPY128.74↑ Buy
 EUR/CHF1.0319↑ Sell
 Gold1,839.05↑ Sell
 Silver24.113↑ Sell
 Copper4.4450Neutral
 Crude Oil WTI84.99↑ Buy
 Brent Oil86.98Buy
 Natural Gas3.749↑ Buy
 US Coffee C233.15↑ Sell
 Euro Stoxx 504,145.55Neutral
 S&P 5004,397.93↑ Sell
 DAX15,328.05Neutral
 FTSE 1007,400.51Buy
 Hang Seng24,656.46↑ Buy
 Small Cap 20001,987.92Buy
 IBEX 358,536.95Buy
 BASF65.175Buy
 Bayer51.09↑ Buy
 Allianz219.38Buy
 Adidas245.45↑ Buy
 Lufthansa6.721↑ Buy
 Siemens AG141.40Buy
 Deutsche Bank AG11.117Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,170/ 6,210
(50/ 50) # 1,154
SJC HCM6,150/ 6,210
(27/ 17) # 1,155
SJC Hanoi6,150/ 6,212
(27/ 17) # 1,157
SJC Danang6,150/ 6,212
(27/ 17) # 1,157
SJC Nhatrang6,150/ 6,212
(27/ 17) # 1,157
SJC Cantho6,150/ 6,212
(27/ 17) # 1,157
Cập nhật 24-01-2022 06:08:50
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,840.07+5.440.30%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2486025350
RON 95-II,III
E5 RON 92-II2359024060
DO 0.05S1890019270
DO 0,001S-V1925019630
Dầu hỏa1779018140
ↂ Giá dầu thô thế giới
WTI$84.97-0.19-0.22%
Brent$87.82-0.13-0.15%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.500,0022.810,00
EUR25.000,4426.401,93
GBP29.901,5831.178,49
JPY193,25204,57
KRW16,4019,98
Cập nhật lúc 18:00:54 24/01/2022
Xem bảng tỷ giá hối đoái
binance main right Fxpro Main Right aetos main right adver main right