Install the Sina Finance client to receive the most comprehensive market information at the first time →[download link]
Global financial media last night this morningThe main headlines of common concern are:
1. The main event!Fed to raise rates this week, but Powell speech could be especially important
2. Summers urges Fed to face up to the severity of inflation and says recession risk is imminent
3. Oil prices continue to soar as UK orders fuel market review
4. Astra Space rocket launch failed, NASA weather satellite lost
5. Dutch regulator says Apple will offer alternative payment methods in dating apps
6. Allianz chief economist says Fed action ‘lag behind’ U.S. inflation could hit 9%
main event!Fed to raise rates this week, but Powell speech could be especially important
The big events in the week ahead may all come down to a speech by Federal Reserve Chairman Jerome Powell at 2:30 p.m. ET on Wednesday.
Powell will brief the media after the Fed’s two-day meeting. The Fed is widely expected to raise the target range for the federal funds rate by 0.5 percentage points, but red-hot inflation data in May has raised concerns about whether policymakers will be more aggressive or forecast a faster pace of future rate hikes.
Stocks and bonds have been volatile as investors worry that inflation may not peak and that higher interest rates could lead to a recession.
Stocks tumbled after Friday’s May consumer price index came in well above expectations. For the week, the S&P 500 fell 5.1%. The index closed at 3,900 on Friday, down 2.9%.
Summers urges Fed to face up to seriousness of inflation, says recession risk looms
Former U.S. Treasury Secretary Summers urged the Fed to realize the seriousness of inflation, which had accelerated to the highest level in 40 years when policymakers met this week and the risk of a recession loomed.
“When inflation is as high as it is and unemployment is as low as it is, there is almost always a recession within two years,” he said Sunday on CNN’s “State of the Union.” Speaking of inflation, ” The Fed’s forecasts tend to be overly optimistic, and I hope they are fully aware of the magnitude of the problem.”
Summers pointed to the risk of a possible recession next year, though he said it was “more likely” within the next two years.
Has been forecasting since last yearQualcommInflation’s Summers said the path of inflation depends on the Russia-Ukraine conflict and its impact on oil prices. U.S. consumer prices rose 8.6% in May from a year earlier, a sign that price pressures have become ingrained in the economy.
Oil prices soar as UK orders fuel market review
The UK government has asked the competition watchdog to examine the retail fuel market to see whether tariff cuts have been passed on to consumers as prices at petrol stations hit unprecedented levels.
British Commerce Minister Quatten said on Sunday that the inquiry will find out why fuel prices have been rising rapidly but falling slowly.
Britain cut fuel taxes by 5p a litre for a year in March in a £5bn ($6.2bn) package to ease the burden on motorists amid a growing cost-of-living crunch for families.
However, UK fuel prices continued to rise, with the average fuel cost of a family car surpassing 100 pounds for the first time last week. People in the UK are frustrated that a £5bn package has not been passed on to fuel prices.
Astra Space rocket launch fails NASA weather satellite missing
U.S. rocket company Astra Space’s mission to put a small weather-monitoring NASA satellite into orbit failed on Sunday. It is reported that the second stage booster engine shut down early in the early space.
The failure came about 10 minutes after the successful launch of the Astra rocket 3.3 from the Space Force launch pad in Cape Canaveral, Florida.
“We did a nominal first stage flight. However, the higher stage engines did shut down early and we didn’t put the payload into orbit,” Astra said.
Dutch regulator says Apple will offer alternative payment methods in dating apps
The Dutch antitrust watchdog said on Saturday,appleThe company will allow different payment methods on Dutch dating apps, ending a dispute that has resulted in the company being fined 50 million euros ($52.58 million).
In a statement, the Netherlands Authority for Consumers and Markets (AMC) said: “With this concession, Apple will meet requirements set by regulators under EU and Dutch competition rules.
Apple has long mandated the use of its in-app payment system, which charges a commission of up to 30 percent, which some developers, including Tinder owner Match Group Inc, consider too high.
“In the digital economy, powerful companies have a special responsibility to keep markets fair and open. Apple sidesteps this responsibility and abuses its dominance as a dating app provider,” said Martijn Snoep, chairman of the ACM board.
Allianz chief economist says Fed ‘lagging’ U.S. inflation could hit 9%
Mohamed El-Erian, chief economist at Allianz Group, believes U.S. inflation is likely to rise further, while recession risks are “currently tilting in a negative way”.
“I think you have to be very humble about what we know about the inflation process,” El-Erian said on Sunday. “And I’m worried it’s going to get worse. At this rate, we’re likely to be at 9 percent.”
U.S. consumer prices unexpectedly accelerated to a 40-year high of 8.6 percent year-on-year in May, potentially prompting the Federal Reserve to extend its aggressive rate hike cycle.
Elrian again criticized the Fed for being “lagging” on inflation and said he expected to raise rates by 50 basis points at this week’s rate meeting.
Massive information, accurate interpretation, all in Sina Finance APP
Responsible editor: Li Tong