January 30th Financial News

Summary:

U.K. inflation may not fall as fast as expected; Fed expected to raise rates twice more and then pause; U.S. consumer spending falls, inflation cooling...

【Quick Facts】

1. UK inflation may fall back slower than expected.

2. U.S. Treasury Secretary Yellen warned of recession risk.

3. Georgia entered a state of emergency.

4. The Fed is expected to raise interest rates twice more and then pause.

5. U.S. consumer spending falls, and inflation cools.

【News Details】

1. UK inflation may fall back slower than expected.

According to sources, British Chancellor of the Exchequer Jeremy Hunt told his cabinet that it would be difficult to bring inflation below 5 percent this year and that he believes the government must hold firm on fiscal discipline in the March budget. Hunt provided his mixed forecast, saying he has begun to see signs of economic recovery and that inflation has passed its peak and has so far fallen back faster than expected. But overall, inflation will struggle to fall below 5% this year due to stubbornly high prices of food, goods and services.

2. U.S. Treasury Secretary Yellen warned of recession risk.

U.S. Treasury Secretary Yellen said Friday she was encouraged by recent U.S. inflation and employment data, but there is a real risk that the economy could fall into recession in a high-interest rate environment. Yellen said, "I'm encouraged because I see inflation coming down, and while there's been more talk about layoffs, fundamentally, the labor market remains quite tight." She believes that if the economy is spared an unexpected shock, the Fed's ability to achieve a soft landing will depend on the labor market. But even then, that doesn't mean a rise in unemployment will be avoided.

3. Georgia entered a state of emergency.

Georgia Governor Brian Kemp declared a state of emergency in the state on Jan. 26 local time in response to a series of protests in Atlanta that have turned violent in recent days. According to reports, Kemp called up to 1,000 members of the Georgia National Guard and provided appropriate resources to respond to the protests, and the state of emergency will last until the end of Feb. 9. Kemp said the state of emergency order was issued because the illegal gatherings, violence and public threats of violence were disruptive to the peace and tranquility of the state and posed a danger to existing persons or property.

4. The Fed is expected to raise interest rates twice more and then pause.

Traders in futures linked to the Fed's policy rate continued to bet Friday that the Fed will raise rates one more time after next week's widely expected 25 bps hike, and then stop raising rates. That's because the data released showed that inflation eased last month as expected. The market is now almost fully pricing in the Fed to raise rates by 25 bps next week, while the likelihood of another 25 bps hike in March is about 85%. Meanwhile, federal funds futures prices are also reacting to the one-in-three chance that the Fed will raise rates by a further 25 bps by June. This compares with the current target range of 4.25%-4.5%.

5. U.S. consumer spending falls, and inflation cools.

U.S. consumer spending fell in December, putting the economy on a lower growth path through 2023, while inflation continues to fade, which could give the Federal Reserve room to slow the pace of interest rate hikes further next week. Data released Friday showed that consumer spending, which accounts for more than two-thirds of U.S. economic activity, fell 0.2 percent last month. The weak handover between 2022 and 2023 increases the risk of a recession in the second half of the year, yet also reduces the need for the Fed to maintain an overly aggressive monetary policy stance. The PCE price index rose slightly last month by 0.1 percent, following a similar increase in November. The Federal Reserve is expected to track the PCE index to set monetary policy. Meanwhile, other inflation indicators have slowed significantly.

【Focus of the Day】

UTC+8 18:00 Eurozone Economic Sentiment Index (Jan)

UTC+8 18:00 Eurozone Industrial Sentiment Index (Jan)

UTC+8 21:15 ECB Governing Council member Villeroy spoke

Risk Warnings and Investment Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or signal, or any other product is suitable for you based on your investment objectives and financial situation.

Quick Access to 7x24

Quick Access to More Editor-selected Real-time News

Full Access to Pro Video Channel

FastBull project team is dedicated to create exclusive videos

Real-Time Quotes

View more faster market quotes

More comprehensive macro data and economic indicators

Members have access to entire historical data, guests can only view the last 4 years

Member-only Database

Comprehensive forex, commodity, and equity market data

7x24

Real Time Quotes

Economic Calendar

Economic Calendar
Events
Holiday

Policy Rates

BANKS ACT (%) PREV (%) CPI (%)

English

简体中文

繁體中文

العربية

Home News Columns AI News Economic Calendar Quotes Videos Data Warehouse Analysis AI Signals Pro User Agreement Privacy Policy About Us

Risk Disclosure

The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.

Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.

Russia-Ukraine Conflict

The Fed

China-U.S. Relations

FastBull Spotlights

FastBull Featured

FastBull

Devin

Winkelmann

Recent Searches