Editor’s note: Morning Money is a free version of POLITICO Pro Financial Services’ morning newsletter delivered to subscribers every morning at 5:15 am. Respond to news with POLITICO Pro.
Finance ministers and central bankers meeting in Washington this week for the International Monetary Fund and World Bank meetings face a mounting list of global economic challenges.
To name a few: High inflation, soaring interest rates, war in Ukraine, energy and commodity shocks, looming European recession, slowdown in China, market turmoil in the UK.
“This is a very extraordinary and unprecedented time in the history of the world economy,” said Mark Sobel, a former Treasury official who is the U.S. chairman of the think tank’s Official Monetary and Financial Institutions Forum.
Facilitate macro discussion: The Federal Reserve’s campaign to eradicate high inflation. The Federal Reserve (Fed) rate hike has had ripple effects around the world, with many central banks following suit or stepping in to support their currencies in the face of a stronger dollar.
This has led to economists complaining that the world’s central banks are overdoing it – the topic is certainly in the background of this week’s debate. But the Federal Reserve and other policymakers are mandated domestically, and Sobel doesn’t think they can coordinate much when it comes to raising rates to combat inflation.
“A lot of the country’s policies, after all, have gone their own way,” he said.
more than that Sobel said the IMF faces several pressing operational issues that policymakers should focus on this week. The IMF executive board last week also approved new loans to Ukraine, and the US is expected to use the meeting to encourage European countries to provide more aid.
“The pace of money transfers to Ukraine is too slow,” Treasury Secretary Janet Yellen said in an interview with the FT’s James Polity published Sunday. “We have commitments, but we need to put money in.”
Financial calendar: Prime Minister Yellen is to receive Ukraine’s Finance Minister Sergiy Marchenko at the Ministry of Finance today. She will also meet with Indian Finance Minister Nirmala Sitharaman and African Finance Ministers. On Wednesday, she will join her discussion at the Ministerial Roundtable on her support to Ukraine at the IMF and sit in her fireside chat with former New York Fed President and Bretton Woods Commission Chair Bill Dudley.
Also today: The IMF releases its latest global economic outlook and Global Financial Stability Report this morning.
it’s tuesday — I hope you spend your weekends peeping at leaves and sipping cider. Have tips, story ideas, or feedback? Send them to: [email protected] When [email protected].
International Monetary Fund Releases World Economic Outlook at 9am… New York Fed’s Five-Year Inflation Expectations Data Release at 11am… Cleveland Fed President Loretta Mester Speaks at Economic Club in New York at 12pm
democrats set fire — Fed Chair Powell has been feared by nervous investors, analysts and progressive groups that he is trying to push the economy into recession. , Congressional Democrats.
More from the MM host: “In interviews with key lawmakers on Capitol Hill, most Democrats in the House and Senate responded to Powell’s campaign to quell inflation with resignations and caution. Few are willing to advise him, including multiple hearings, with some exceptions such as. Elizabeth WarrenHe accused Powell of being “reckless and dangerous” for endangering the jobs of millions of workers.
Former Fed Vice Chairman Donald Cohn said his stance that his mission was widely accepted may not last forever. “I think the headwinds will increase when unemployment goes up and companies start hiring a little less and laying off more. But that hasn’t happened yet.”
Bernanke Wins Nobel Prize — AP: “Former U.S. Federal Reserve Board member Ben Bernanke, who used his academic expertise on the Great Depression to revive the U.S. economy after the 2007-08 financial crisis, Bernanke was awarded the Nobel Prize in Economics alongside two economists from the United States for their work on the effects of bank failures.”
Tweet of the day — Federal Reserve: They are like us! from NYT’s Gina Smirek:
Trump SPAC — Our Declan Harty writes: CEO Patrick Orlando said Monday while announcing that investors would be able to vote until Nov. 3. Shares of SPAC plummeted just after Monday, dropping more than 7%. .
ian shreds safety net — Our Zach Colman and Katie O’Donnell: “When Florida counts right off the deadliest hurricane in decades, the destruction it wreaked on homes is a nest egg for retirees and families It obliterates the primary way to pass wealth on to new generations.
Anti wake bank stumbling — WSJ’s Rachel Louise Ensign, Peter Rudegair and AnnaMaria Andriotis said: Too liberal street. … Within a few months, investor money was almost gone and GloriFi was on the verge of bankruptcy. ”
Former Federal Reserve Board Friday’s Daniel Tarlo warns former colleague that central bank’s annual stress test is wasting some of its potential for lenders, and more ways to make it dynamic encouraged to find
Technical glitch on the SEC website Regulators have been urged to reopen the public comment period on some signature pieces of Chairman Gary Gensler’s agenda, further delaying proposals on climate risk disclosures, blank-check companies and private funds, Declan Harty reports. Did.
patience is a virtue — WSJ’s Nick Timiraos: “A senior Federal Reserve official warned that this year’s rapid rate hikes by the central bank will take time to tame inflation that has reached a 40-year high.
“Monetary policy will remain restrictive for some time to ensure inflation returns to the central bank’s 2% target,” Fed Vice Chairman Lael Brainard said in a prepared statement on Monday. .
First in MM: Climate Principles — Groups of consumer and environmental advocates including Public Citizen, Sierra Club and Americans for Financial Reform are calling on the Fed to issue climate oversight principles with clear guidelines for banks, and today 60,000 I am submitting a signed petition. Read the full letter here.
Treasury buyers in retreat — Bloomberg’s Liz McCormick, Garfield Clinton Reynolds and Michael McKenzie: “From Japanese pension and life insurance companies to foreign governments and US commercial banks once lined up to get hold of US government debt. But now most of them have withdrawn.”
corporate profit — WSJ’s Theo Francis: “Many large US companies said they were able to raise prices despite limited customer resistance this year. All change leads to higher corporate profits. It does not mean.”
china chips Bloomberg: “The Biden administration’s new restrictions on technology exports to China could undermine China’s ability to develop broad areas of the economy, from semiconductors and supercomputers to surveillance systems and advanced weapons. ”
holiday discount — Abha Bhatterai, WaPo: “The country’s retailers, which have suffered from product shortages for most of the pandemic, are now facing the opposite problem: unprecedented unsold goods slash profits and leave vacationers out of business. It could derail plans and depress overall U.S. economic growth.”
Tara Sinclair I joined the Treasury Department as Deputy Assistant Secretary for Macroeconomics in the Economic Policy Division. Until recently, George Sinclair was Professor of Economics and International Affairs at the University of Washington and a Senior Fellow at the Indeed Hiring Lab.
crypto exchange Businesses are also required to collect details of individuals or companies that own digital assets and share them with tax authorities under measures put forward by the Organization for Economic Co-operation and Development (OECD). — Our Bjarke Smith-Meyer
Russia It has lost three-fifths of its seaborne crude oil sales in Europe since Moscow sent troops to Ukraine in February. — Julian Lee of Bloomberg
Crisis in the UK government bond market The rise accelerated after renewed attempts by the Bank of England to boost pension fund support failed to assuage concerned investors. — WSJ’s Chelsea Durany, Paul Hannon and Julie Steinberg
Charles BowsherUsing his role as Capitol Hill’s top financial watchdog to uncover the full extent of the savings and loan meltdowns of the 1980s, he challenged two White House administrations. He died at his home in Bethesda, Maryland on September 30. — Brian Murphy of WaPo
Comments
Post a Comment