Fri, Feb 24 2023 8:36 AM EST
Fed’s Meister says rates need to go above 5% to tame inflation
Cleveland Federal Reserve Chair Loretta Mester said on Friday that interest rates need to rise even higher to reduce inflation.
“I see we’re going to get interest rates above 5%,” she told CNBC’s Steve Laisman during a “Squawk Box” interview. “We will find out how much above. It will depend on how the economy develops over time. But I think we will have to stay above 5% and get inflation on a sustainable downward path. Will have to stop for a while.” up to 2.”
Meester recently made news when she revealed she was one of a small group of Fed officials who, in the Jan. 31-Feb. 1 The Federal Open Market Committee wanted a half-percentage point rate hike instead of a quarter-point move, which the panel approved.
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China Renaissance says Bao Fan is cooperating with government investigation
Missing Chinese investment banker Bao Fan is cooperating with a government investigation, his firm China Renaissance said in a filing on Sunday.
“The Board has learned that Mr. Bao is currently cooperating with an investigation being conducted by certain authorities in the People’s Republic of China,” the company said.
Hong Kong-listed shares of China Renaissance plunged 29% after the firm said on February 16 that it was unable to reach Bao. He is the controlling shareholder, chief executive officer and founder of the company, among other roles.
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Asia week ahead: growth, inflation and purchasing managers’ index readings
Regional readings for Purchasing Managers’ Index, Japan’s industrial production and Australia’s GDP will be some of the key economic events taking place this week.
New Zealand is set to report its fourth-quarter retail sales on Monday, while Taiwan celebrates Peace Memorial Day until Tuesday.
On Tuesday, Japan is due to release its industrial production and retail sales, while Australia will announce its current account for the fourth quarter.
India will also report its GDP for its fourth quarter on Tuesday. Overnight, the US Consumer Confidence for February will also be released.
South Korea’s market will be closed on March 1 to observe Independence Movement Day.
On Wednesday, China’s National Bureau of Statistics will release its official reading of the purchasing managers’ index, after returning to a growth rate of 50.1 in January.
Australia will release its inflation readings and GDP for the fourth quarter. Economists polled by Reuters are expecting to see a seasonally-adjusted 2.8% growth on an annual basis.
Indonesia will also announce its February consumer price index, which is expected to rise to 5.42% from the previous reading of 5.28%, according to a Reuters poll.
On Thursday, industrial production and retail sales data from South Korea will be released, along with fourth-quarter trade data from New Zealand. The S&P Global Manufacturing PMI for South Korea is also due to be released.
Japan’s unemployment rate is expected to come in at 2.5% for January, according to a Reuters poll on Friday. Tokyo’s consumer price index for all goods except fresh food is expected to rise 3.3% for January.
– Jihye Li
Fri, Feb 24 2023 3:16 PM EST
Baird says investors ‘need to control what they can control’
The market is currently experiencing the effects of “too much good news at once,” according to Baird analyst Ross Mayfield. With inflation remaining hot and the Federal Reserve expected to continue raising rates, Mayfield advises investors to “control what [they] can control.”
“First, automate things: Dollar cost averaging (investing in regularly scheduled intervals) is a great way to find outperformance in volatile/sideways markets,” Mayfield wrote in a Friday note.
“Second, revisit your allocation to make sure you’re well-diversified and on-plan.”
– Hakyung Kim
Fri, Feb 24 2023 4:05 PM EST
Stocks wrapped up in worst week of the year
US stocks closed lower on Friday, marking the start of their worst week of 2023.
The Dow Jones Industrial Average fell 336 points, or 1.0%. The S&P 500 and Nasdaq Composite slipped 1.0% and 1.7%, respectively. The Dow fell as much as 510 points, or 1.54%, in the first trading session.
– Hakyung Kim