Daly: The Federal Reserve may need to continue fighting inflation.
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Federal Reserve Bank of Canada President Daly emphasized that the dual mandate objectives remain unchanged, but expressed a willingness to assess the economy using new methods.
Odaily Odaily reports that Federal Reserve Bank of Canada President Tom Daly stated that inflation should begin to slow, but the economic outlook remains highly uncertain. Speaking at a Spanish central bank event in Santander on Thursday, Daly said, "We continue to maintain a slightly restrictive policy level, so inflation should decline." Daly noted that tariffs and rising oil prices this spring, following the US-led war with Iran, pushed up inflation. She praised the slowdown in oil prices following the ceasefire agreement between the US and Iran, saying it brought "hope for easing," but warned that it remains unclear how the economy will evolve. She outlined several scenarios that might require different responses from the Federal Reserve, and suggested that the Fed may need to take a more aggressive approach to persistent inflation. Daly also pointed out that she is open to using different and novel methods to assess the economy, but for the credibility of the Federal Reserve, it is important not to change its mission of promoting full employment and price stability. (Jinshi)
Federal Reserve's Williams: Strong investment in AI is expected to continue.
According to BlockBeats, on July 7th, Federal Reserve official Williams stated that he expects to continue seeing strong investment in artificial intelligence, that risks in the labor market are relatively balanced, and that his recent outlook on inflation is more positive due to energy prices. He added that the direction of monetary policy depends on data and risks, and that the Fed is prepared to achieve its goals. (Jinshi)
Analysis: US June employment data may make inflation a major driver of the Federal Reserve's policy.
According to BlockBeats, on July 1st, BeiChen Lin, Senior Investment Strategist at Russell Investments, stated in a report that he expects U.S. job growth to remain strong in June, meaning inflation is likely to continue to dominate in determining the Federal Reserve's policy path. He stated, "If the labor market remains robust, inflation is likely to be a key factor influencing the Fed's next move." He added that given the recent increase in mergers and acquisitions, initial public offerings (IPOs), and debt issuance, a key focus is whether job growth in the financial services sector accelerates. Relevant data will be released on Thursday. (Jinshi)
Trump hinted that Warsh was having a difficult time at the Federal Reserve and continued his attempts to get rid of the "troublemaker."
PANews reported on July 3 that, according to Jinshi News, following the release of the latest US jobs report, US President Trump refused to advise Federal Reserve Chairman Warsh in an interview, stating that the new chairman "must do what he has to do." Trump said, "Wash has a council that is perhaps a little hostile, and unfortunately, that council may want to do the wrong things." Trump also stated that he will continue to push for the dismissal of Federal Reserve Governor Cook by "winning the lawsuit." Trump has long favored lowering interest rates.
Trump stated that Warsh "must do what he has to do" and will continue to push for the dismissal of Federal Reserve Governor Cook.
According to Mars Finance, on July 3rd, following the release of the US June non-farm payroll report last night, US President Trump gave an interview and refused to offer advice to Federal Reserve Chairman Warsh, stating that the new chairman "must do what he has to do." Trump indicated that Warsh has a potentially hostile board, and unfortunately, this board may be trying to do the wrong things. Trump also stated that he will continue to push for the dismissal of Federal Reserve Governor Cook by "winning the lawsuit."
Warsh on the Supreme Court's ruling on the Federal Reserve: "We don't need to worry about political factors."
PANews reported on July 1 that Federal Reserve Chairman Warsh gave his initial response to the Supreme Court's ruling this week that blocked President Trump's dismissal of Federal Reserve Governor Cook: "The Federal Reserve operated independently and followed its statutory duties until the Supreme Court's ruling. Following the Supreme Court's ruling, the Federal Reserve will continue to do so… I trust the federal judges appointed under Article III of the Constitution and I firmly believe in the rule of law. We will follow the Supreme Court's ruling, but from the perspective of day-to-day operations, this ruling reaffirms our position: we are doing everything in our power to perform our duties impartially, just as a referee would judge a ball. We take our reform goals seriously and will deliver on the important commitments Congress has given us—namely, achieving price stability within the framework of our 'dual mandate'; as long as we do this, we need not worry about political interference or judicial intervention. We can focus on the task at hand."