Friday, February 24, 2023 8:36 am EST
The Fed’s Mester says rates must rise above 5% to quell inflation
Interest rates need to go higher for inflation to come down, Cleveland Federal Reserve Chair Loretta Mester said on Friday.
“I see that we need to get interest rates above 5%,” she told CNBC’s Steve Liesman during a Squawk Box interview. “We’ll find out how much about it. That will depend on how the economy develops over time. But I think we need to be a little over 5% and stay there for a while to put inflation on a sustainable downward path to 2%.”
Mester recently made headlines when she revealed that she was among a small group of Fed officials who met on Jan. 31-Feb. 1 Federal Open Market Committee, wanted a half-percentage-point rate hike instead of the panel-approved quarter-point move.
– Jeff Cox
33 minutes ago
According to China Renaissance, Bao Fan is cooperating with a government investigation
Missing Chinese investment banker Bao Fan is cooperating with a state investigation, his firm China Renaissance said on Sunday.
“The Board has been made aware that Mr. Bao is currently cooperating with an investigation being conducted by certain authorities in the People’s Republic of China,” the company said, noting that its operations remain normal.
Hong Kong-listed China Renaissance shares have fallen 29% since the company said on February 16 it was unable to reach Bao. He is, among other things, the majority shareholder, chief executive officer and founder of the company.
– Evelyn Cheng
36 minutes ago
Forecast Asia Week: Growth, Inflation and Purchasing Managers Indices
Regional readings for the Purchasing Managers’ Index, Japan’s Industrial Production and Australia’s Gross Domestic Product will be some of the key economic events to take place this week.
New Zealand is expected to report its fourth-quarter retail sales on Monday, while Taiwan celebrates Peace Memorial Day through Tuesday.
On Tuesday, Japan will release its industrial production and retail sales, while Australia will release its current account for the fourth quarter.
India will also report its gross domestic product for its fourth quarter on Tuesday. US consumer confidence for February will also be released overnight.
South Korea’s market closes on March 1 to celebrate Independence Day.
On Wednesday, China’s National Bureau of Statistics will release its government data on the Purchasing Managers’ Index, after it showed a return to growth of 50.1 in January.
Australia will release its fourth quarter inflation figures and gross domestic product. Economists polled by Portal expect annualized seasonally adjusted growth of 2.8%.
Indonesia is also set to announce its February CPI, which is expected to rise to 5.42% from 5.28% previously, according to a Portal poll.
Fourth-quarter trade data from New Zealand and South Korea’s industrial production and retail sales will be released on Thursday. The release of the S&P Global Manufacturing PMI for South Korea is also planned.
Japan’s January unemployment rate is expected to hover at 2.5% on Friday, according to a Portal poll. Tokyo’s CPI for all items except fresh food is expected to have risen 3.3% in January.
– Jihye Lee
Friday, February 24, 2023 3:16 pm EST
Investors need to “control what they can control,” says Baird
According to Baird analyst Ross Mayfield, the market is currently feeling the effects of “too much good news at once.” With inflation staying hot and the Federal Reserve likely to make more rate hikes, Mayfield advises investors to “control what [they] can control.”
“Automate things first: Dollar averaging (investments over regularly scheduled intervals) is a great way to find outperformance in volatile/flat markets,” Mayfield wrote in a note Friday.
“Second, review your allocation to make sure you’re well diversified and on track.”
— Hakyung Kim
Fri, Feb. 24, 2023 4:05 p.m. EST
Stocks close out the worst week of the year
US stocks closed lower on Friday, ending their worst week of 2023.
The Dow Jones Industrial Average fell 336 points, or 1.0%. The S&P 500 and Nasdaq Composite fell 1.0% and 1.7%, respectively. The Dow fell as much as 510 points, or 1.54%, earlier in the trading session.
— Hakyung Kim