WASHINGTON (AP) — A top Federal Reserve official says the outlook for the U.S. economy is bright but the recent jobs report is a reminder that the path of the recovery is likely to be uneven and difficult to predict.
Lael Brainard, a member of the Fed’s board, said Tuesday in a virtual conference sponsored by the Society for Advancing Business Editing and Writing, that employment and inflation remain far from the Fed’s goals.
The Fed has said it will not start raising interest rates until it has achieved maximum employment and annual prices gains that have not only hit the Fed’s 2% target, but exceeded that target for a period of time.
“While more balanced than earlier this year, risks remain from vaccine hesitancy, deadlier variants and a resurgence of cases in some foreign countries,” Brainard said.
The Fed has kept its key interest rate at 0 percent to 0.25% for more than a year and signaled that it will keep rates at this level at least through 2023. Brainard’s comments Tuesday backed up the view that the Fed has no intention to change course in interest rates.
Brainard referred to last week’s job report that showed the economy created 266,000 jobs last month, sharply lower than March and far fewer than economists had been expecting. She said this was a signal that the Fed needs to proceed with caution before withdrawing its support.
She said that the report was “a reminder that the path of re-opening and recovery — like the shutdown — is likely to be uneven and difficult to predict, so basing monetary policy on outcomes rather than the outlook will serve us well.”
She said the path of inflation was also difficult to predict but that the most likely outcome was a brief period of “transitory” price increases with inflation then returning to the low inflation levels that the country has experienced for more than a quarter-century.
But she said she will be monitoring inflation closely in coming months to make sure this forecast of a return to lower inflation proves correct.
If a risk of higher inflation for longer becomes evident, Brainard said the Fed has “the tools and the experience to gently guide inflation back to our target. No one should doubt our commitment to do so. »
But on the other hand, she said the Fed should not dismiss risks that the re-opening proves weaker than expected because of such factors as the uncertain path for the pandemic.
“Remaining patient through the transitory surge associated with reopening will help ensure that the underlying economic momentum … is not curtailed by a premature tightening of financial conditions,” Brainard said.
Asked during a question and answer session what it would take for the Fed to become concerned about a potential overheating of the economy, Brainard said she believes significant changes in the expectations of businesses and consumers about inflation would take time to become embedded in the economy.
“Over three decades or more, we just don’t see rapid changes in inflation dynamics,” she said. The central bank needs to be cautious that it doesn’t choke off the recovery and end up with inflation once gain stuck below the Fed’s 2% target, she said.
(Bloomberg) — Gold declined as the dollar strengthened ahead of consumer prices data that will give the latest insight as to how warranted inflation fears are.Bullion has rallied in recent days amid a decline in real Treasury yields, driven by higher expectations for inflation as commodity prices surge across the board. U.S. CPI data released later will give an indication of whether these are feeding through to consumers. Investors will also be debating whether it’s simply a sign of improving overall demand, or risks becoming uncontrolled.“Gold is struggling a bit ahead of the CPI data as the market frets the bond market reaction to a stronger than expected pick up,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. Its rejection at a key resistance at $1850 an ounce “has left it in consolidation mode with support at $1818 an ounce so far holding.”It comes amid fears the economic recovery may not be proceeding as hoped. Gold rose to the highest in three months earlier this week after a report showed a surprise slowdown in U.S. job growth, supporting the case for continued economic stimulus and low interest rates.That message was echoed by a chorus of Federal Reserve officials. “The outlook is bright, but risks remain, and we are far from our goals,” Governor Lael Brainard told a virtual event Tuesday. Cleveland Fed President Loretta Mester and James Bullard of St. Louis voiced similar views, with the unified message coming as debate continues over whether price pressures will be persistent enough to force the Fed to tighten policy sooner than current guidance suggests.Spot gold retreated 0.2% to $1,833.50 an ounce by 10:24 a.m. in London. Prices hit $1,845.51 on Monday, the highest since Feb. 11. Silver and platinum fell, while palladium rose. The Bloomberg Dollar Spot Index added 0.1%, though remained near the lowest since early January.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Three Federal Reserve officials on Monday say they didn’t think the jobs market was stalling, even if employment figures in April were far below expectations.
Buying a condominium (condo) means not only purchasing a residence but also buying partial ownership in communal property within a condo development.
Today’s graduates are expected to arrive on the job with a range of in-demand skills they would have once developed in the early years of their career.
Lawmakers on the Senate Rules Committee are debating the « For the People Act, » a major overhaul of voting rights in the U.S. Democrats say the measure is crucial to protecting elections, while Republicans say it isn’t necessary as they push for restrictive laws. CBSN’s Caitlin Huey-Burns spoke with Tanya Rivero about the debate.
President Joe Biden offered updates on the state of the economy yesterday after a very disappointing jobs report that brought in only 266,000 non-farm payroll jobs instead of the expected 1 million….
(Bloomberg) — The euro-area economy may expand by more than the 4% currently projected by the European Central Bank this year as savings are unleashed and consumption rebounds, according to Governing Council member Klaas Knot.The Dutch policy maker argued that service-sector activity is reviving in line with the experiences of other countries that were faster at rolling out vaccinations, and that the bloc will likely follow a similar path now that it is catching up.“We can take comfort that the euro area in the coming months will take the exact same trajectory, services will also pick up, we expect more than 4% growth over the full year,” he said at an event late on Tuesday. “I would argue that there is still significant upside risk actually, and that has to do with pent-up demand.”The ECB will update its economic projections next month, after last doing so in March. Since then, the speed of inoculations in the bloc has significantly accelerated, and the economy has shown resilience despite severe restrictions in countries that are battling a stubborn third wave of infections.“Traditionally we have been very conservative within the ECB, assuming in our baseline projections that the savings rate would just return to its pre-corona level, that there would be no pent-up demand taking place,” Knot said. “I personally think that’s a bit of an overly conservative assumption.”Bank of Spain Governor Pablo Hernandez de Cos said at a separate event that if the distribution of vaccines accelerates in the coming weeks, “it’s normal to expect that, indeed, the European, global and, of course, Spanish economies begin to see relatively strong economic growth in the coming quarters.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Federal Reserve Governor Lael Brainard on Tuesday urged the Fed to be patient and not take its foot off the gas too soon, saying a strong economy was not a sure thing.
« The majority of us carry some form of unresolved trauma, » Harry says in new statement about the Apple TV series
An article in The Atlantic looks at how policymakers in some of the nation’s most progressive communities left scientific evidence behind while keeping tougher COVID restrictions. The author, Atlantic staff writer Emma Green, joined CBSN’s Tanya Rivero to talk about what she found.
The World Health Organziation said on Monday that the coronavirus variant first identified in India last year was being classified as a variant of global concern, with some preliminary studies showing that it spreads more easily. The B.1.617 variant is the fourth variant to be designated as being of global concern and requiring heightened tracking and analysis. « We are classifying this as a variant of concern at a global level, » Maria Van Kerkhove, WHO technical lead on COVID-19, told a briefing.
MADRID (Reuters) -Spain plans to lift its requirement for Britons to present a negative coronavirus PCR test upon arrival from May 20, provided that the infection rate in Britain keeps declining, the Spanish tourism minister said on Tuesday. « It will allow the opening of the British market so they can come to Spain, » Reyes Maroto told reporters after a weekly cabinet meeting, offering a glimmer of hope to the flagging tourism sector. Plans to lift the PCR requirement form part of a broader revision of EU regulations on non-essential travel from outside the bloc, which Maroto expected to be approved by May 20.
BMW teamed up with Academy Award-winning composer and curator Hans Zimmer to create sounds for the Vision M Concept, a head-turning design study with 600 electrified horsepower presented in 2019. It sounds — pardon the pun — like Zimmer’s sound will be heard by the passengers, not by pedestrians. Many EVs emit an artificial sound, but making one worthy of BMW’s high-octane M brand is a daunting challenge.
Amazon devices, including the Echo Dot 4th generation smart speaker, Echo Show 5 and more, are seriously discounted ahead of Prime Day 2021.
Data from the American Advisors Group, the nation’s leader in home equity solutions, shows that seniors are pushing back retirement to make ends meet, and 2020 has only expedited that trend. This data…
Photo Illustration by The Daily Beast/GettyIf the federal investigation into Matt Gaetz does indeed end up spelling the MAGA congressman’s downfall, it’ll be partly because of a group of “wannabe” Instagram influencers.On this week’s episode of The Daily Beast’s Fever Dreams podcast, hosts Will Sommer and Asawin Suebsaeng welcome fellow Beast reporters Jose Pagliery and Roger Sollenberger, the duo that’s been breaking story after story on the Gaetz scandal in recent weeks. The pair reveal new details on the Gaetz saga that haven’t been publicly released before, including additional passages from the confession letter secretly written by disgraced Gaetz wingman Joel Greenberg, and sent to Trump associate and longtime GOP ratfucker Roger Stone.And when it comes to the Daily Beast duo’s broader investigative work into Gaetz and Co., much of it would not have been possible if it weren’t for users chasing clout on Instagram.4 Women Say Matt Gaetz’s Wingman Pressured Them to Have Sex “These are people who are amateur Instagram models,” Pagliery told Fever Dreams, referring to the network of women they uncovered that led directly to Gaetz and Greenberg. “So many of these were, like, wannabe escorts. They wanted to project a version of themselves out to the galaxy. And, you know, I got so… incredulous at one point a few weeks ago that I just decided to tweet, ‘You think you’re doing it for your brand, but you’re actually doing it for my investigation,’ because these people are just putting it out there front and center.”According to Sollenberger and Pagliery, Gaetzgate is set to heat up once again this week—and the two reporters gave a hint of what we can expect.“So, we know that this is heating up, particularly again, because we’ve got a deadline on May 15th for Greenberg to become a fully cooperating witness for the government,” Pagliery said. “And there’s not just that. We also hear that the feds are pressuring other people who have direct knowledge of this… The world for Matt Gaetz in the near term looks extremely difficult because it’s not just that there’s some evidence—there’s a lot of evidence, and there are several witnesses.”Pagliery continued, “There’s another point that we have to consider, which is that as far as we know… several of these young women are speaking to each other. And so there is a degree of coordination between them about how they are interacting with people like us, who are reporters trying to figure out what happened. And it’s going to be curious to see if these girls are coordinating what they’re going to be telling investigators with the federal government, but also… who it is that is paying for their representation… I’m hinting at a lot here, but I think that’s going to point out how this is going to shake out in the next few months.”Elsewhere on this episode, Suebsaeng and Sommer dive into how the Trumpian obsession with ballot “audits” is spreading nationwide, capturing local constituencies and state Republican parties, and even infecting a town in New Hampshire where Republicans had already won. And—naturally!—our odyssey into this ballooning anti-democratic hellscape somehow quickly escalates to a treasure hunter boasting to Will that he’s a “geek” who’s trapped in a “biker’s body.”Listen, and subscribe, to Fever Dreams on Apple Podcasts, Spotify, and Stitcher.Read more at The Daily Beast.Get our top stories in your inbox every day. Sign up now!Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.
At least 35 Palestinians and five Israelis have been killed as fighting between Israel’s military and Hamas entered a third day Wednesday, per Reuters.The big picture: The worst aerial exchanges of fire between Israel and Hamas since 2014 come after escalating violence in Jerusalem that injured hundreds of Palestinians and several Israeli police officers during protests over the planned evictions of Palestinian families from their homes. Get market news worthy of your time with Axios Markets. Subscribe for free.The UN has said the evictions would violate international law. Smoke billows on May 12 at Ashkelon’s refinery, hit by Hamas rockets the previous day in southern Israel, near the Gaza Strip. Photo: Jack Guez/AFP via Getty Images People gather at the site of a collapsed building in the aftermath of Israeli air strikes on Gaza City on May 11. Photo: Mahmud Hams/AFP via Getty Images Rockets are launched from Gaza toward the coastal city of Tel Aviv, Israel on May 11. Photo: Anas Baba/AFP via Getty Images A Palestinian youth comforts an injured boy receiving medical care al-Shifa hospital after an Israeli air strike in Gaza on May 11. Photo: Mahmud HamsA/AFP via Getty Images Israeli emergency services transport an injured man in the town of Holon near Tel Aviv, on May 11. Photo: Gideon Markowicz/AFP via Getty Images Israeli soldiers fire tear gas at Palestinian demonstrators at the Qalandiya checkpoint between Ramallah and Jerusalem, in the occupied West Bank, on May 11. Photo: Abbas Momani/AFP via Getty Images A Palestinian protester burns tires in response to Israeli security forces at the Beit El checkpoint early on May 12. Photo: Issam Rimawi/Anadolu Agency via Getty Images Smoke billows from Israeli air strikes in Gaza City on May 11. Photo: Anas Baba/AFP via Getty Images Israeli forces and others take cover on the ground as rockets are launched from the Gaza Strip into the southern Israeli city of Ashkelon on May 11. Photo: Jack Guez/AFP via Getty Images A Palestinian man holds an injured girl awaiting medical care at al-Shifa hospital, after an Israeli air strike in Gaza city, on May 11. Nine children were among 24 Palestinians killed in Israeli airstrikes the previous day, AP reports. Photo: Mahmud Hams/AFP via Getty Images A Rabbi inspects the damage inside a religious school in the central Israeli city of Lod, near Tel Aviv, on May 11 following overnight exchanges of fire. Photo: Ahmad Gharabli/AFP via Getty Images Smoke billows from a fire caused by Israeli air strikes in Khan Yunis, in the southern Gaza Strip on May 11. Photo: Said Khatib/AFP via Getty Images Rockets are launched from Gaza into Israel on May 11. Photo: Majdi Fathi/NurPhoto via Getty Images Palestinian children inspect their damaged house following an Israeli airstrike at Al-Shati Refugee Camp in Gaza City on May 11. Photo: Mohammed Abed/AFP via Getty Images Israel’s Iron Dome aerial defense system intercepts rockets above the southern Israeli city of Ashkelon, after they were launched from the Gaza Strip on May 10. Photo: Jack Guez/AFP via Getty Images Israeli forces fire tear gas towards Palestinians throwing stones during a protest in Bethlehem, in the occupied West Bank, on May 10. Photo: Hazem Bade/AFP via Getty Images Palestinian medics evacuating a wounded person during protests in Jerusalem’s al-Aqsa mosque compound on May 10. Photo: Ahmad Ghabarli/AFP via Getty Images Palestinians respond to Israeli forces during a protest against attacks by Israeli police on Palestinians at Masjid al-Aqsa, in Nablus, West Bank early on May 11. Photo: Mamoun Wazwaz/Anadolu Agency via Getty Images Israeli forces during a Palestinian protest at Masjid al-Aqsa, in Nablus, West Bank, early on May 11. Photo: Mamoun Wazwaz/Anadolu Agency via Getty ImagesEditor’s note: This article has been updated to reflect the latest exchanges and more photos.Like this article? Get more from Axios and subscribe to Axios Markets for free.
Dr. Balram Bhargava, head of the Indian Council of Medical Research (ICMR), said in an interview that lockdown restrictions should remain in place in all districts where the rate of infection is above 10% of those tested. Currently, three-fourths of India’s 718 districts have what is known as a test-positivity rate above 10%, including major cities like New Delhi, Mumbai and the tech hub of Bengaluru. Bhargava’s comments are the first time a senior government official has outlined how long lockdowns, which already encompass large parts of country, need to continue to rein in the crisis in India.
Authorities in Australia’s second most populous state warned on Wednesday the next few days would be critical to preventing a coronavirus outbreak after a man in his 30s tested positive a day earlier for COVID-19. The unidentified man was the first locally transmitted case in Victoria state in more than two months. Health officials said it was most likely he contracted the virus while serving his 14-day hotel quarantine in neighbouring South Australia state.
Rep. Jamie Herrera Beutler, one of 10 Republican U.S. House members who voted to impeach Donald Trump for his role in the Jan. 6 Capitol insurrection, says she will vote to retain Rep. Liz Cheney in Republican leadership. Cheney, who also voted to impeach the former president, is expected to be ousted from her position this week. “Jaime will be voting to keep the House leadership in place,” Beutler’s spokesman Craig Wheeler told The Seattle Times in an email.
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