© Reuters. FILE PHOTO: The Federal Reserve Board is seen before the Federal Reserve board is expected to unveil plans to raise interest rates in March as it focuses on fighting inflation in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts/File Photo
Looking at the upcoming day in Anshuman Daga markets
Even as Fed spokesmen talk tough on interest rates and keep market expectations in check, Britain’s dovish sentiment will also have an impact on the UK economy.
St. Louis Fed President James Bullard said that even under the “generous” analysis of monetary policy, the Fed should continue to raise interest rates because its tightening so far “had only a limited effect on inflation.”
And the President of the Minneapolis Federal Reserve Bank, Neel Kashkari, said that it is difficult to know whether the US central bank will need to raise interest rates but that it should not stop until it is clear that inflation has reached its peak.
Meanwhile, it looks like recent market interest in short-term rate hikes on signs of slowing inflation was misplaced. On Friday, the change in sentiment pushed the dollar to its best week in five months on Friday, while Asian stocks were flat.
However, there was good news as British consumer confidence rose this month despite being at a record low, market research firm GfK said on Friday.
The move came a day after the country’s budget watchdog warned that Britain was facing a major cost of living this year, with rising inflation. Chancellor of the Exchequer Jeremy Hunt has announced more austerity measures, with taxes rising now and spending cuts ahead.
On the corporate front, Francesco De Ferrari (NYSE: ), who oversees Credit Suisse’s wealth management business, told Reuters he was looking to bigger markets, more expensive clients and technology to boost the Swiss bank’s fortunes.
At this time, John Ray, who was named CEO of FTX to lead the FTX Group through bankruptcy, explained the abuse of the fund and unreliable documents in the initial findings of the collapse of the crypto exchange, describing it as a “complete failure” of the authorities.
The Securities Commission of The Bahamas decided to regulate the entire FTX digital economy.
The situation worsened on Twitter as hundreds of employees began to walk away from the beleaguered company following Elon Musk’s announcement that employees would either sign up for “stronger hours,” or leave.
Finally, be prepared to be late during the holiday season.
British postal workers Royal Mail (LON:) will strike for six days ahead of the busy Christmas period in a dispute over pay and conditions, its board said on Thursday.
Major events that will affect the markets on Friday:
UK Oct retail sales
US Oct real estate sales available
Fed Powell speaks