May 13, 2022
Fed Hikes, Powell Confirmation, Latin America Rates: Eco Day
Bloomberg News
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Welcome to Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- Federal Reserve Chair Jerome Powell reaffirmed that the central bank is likely to raise interest rates by a half-point at each of its next two meetings, in June and July. He also won Senate confirmation for a second four-year term
- San Francisco Fed President Mary Daly equally backed half-point hikes at the next two meetings
- The US is heading into a new era of elevated inflation that’s likely to persist long after the red-hot prices of the past year or so come off the boil
- Bloomberg Economics analysis shows wage growth in the US is likely peaking as the turnover rate among currently employed workers has declined since last year
- Peru raised interest rates to the highest level in 13 years to curb soaring inflation that triggered mass disorder last month
- Argentina’s central bank raised borrowing costs for the fifth time this year. Earlier Thursday, data from the country showed consumer prices rising 6% in April
- Mexico boosted borrowing costs by a half-point in a widely anticipated move to tame inflation that’s at a two-decade high
- China will likely report the weakest monthly economic indicators since the outbreak of the pandemic two years ago, putting pressure on the central bank to boost stimulus to support growth
- UK Chancellor of the Exchequer Rishi Sunak said he was unable to increase welfare benefits this year because the government’s antique computer system would not let him
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