May 4 (Wednesday)
Latest Morning Briefing Executive Summary: Fed Set To Hike By 200 Basis Points
The financial markets have thoroughly discounted the Fed’s plan to raise the federal funds rate incrementally by a total of 200bps, so why not dispense with the increments and go for it? That’s not in the Fed’s data-dependent DNA. … Today, we examine the case for investing in bonds: The Fed is bound to tame inflation one way or another. If inflation drops back to 3.0%-4.0% next year and 2.0% in 2024, as we expect, then a 3.00% 10-year Treasury bond yield is quite interesting. … Also: A look at the ECB’s policy playbook, which is much less hawkish than the Fed’s.
(subscribers’ link)
YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on May 2.
Markets
U.S. Stocks Finish Higher Ahead of Fed Meeting | W
Stocks rise, U.S. yields slip as markets await Fed rate hike | R
China’s Covid-19 Outbreak Cools Metals Rally | W
Central banks
The Fed’s half-point rate boost is expected; investors on edge | C
Fed’s Message on Interest-Rate Path, Destination Will Be Scrutinized | W
Energy
Oil gains 1% after U.S. crude stocks signal tighter supply | R
Europe Is About to Ban Russian Oil: What Happens Next? | NYT
Russia Wants to Sell More Energy to Asia, but Has to Slash Prices | NYT
High Electric Bills Get Ready for Another Energy Price Spike: High Electric Bills | NYT
US
U.S. Job Openings, Quits Reach March Records in Tight Labor Market | W
Immigrants to Get Extension for Expiring or Expired U.S. Work Permits | W
Starbucks Plans Barista Raises, Says Unionized Cafes Will Need to Bargain | W
Geopolitics & trade
Europe Moves to Sanction Russia Again, Closing In on Oil Embargo | W
Ukrainian Civilians Describe Desperate Efforts to Flee Bombed-Out Mariupol | W
Kremlin on high alert as coup rumors grow in Moscow: Disgruntled generals join FSB looking to oust Putin and end Ukraine war
Zelensky Says Companies Are Supporting Russia’s ‘War Machine’ if They Stay There | W
Biden Officials Divided Over Easing China Tariffs to Slow Inflation | W
Industries & companies
Tech: Global Chip Shortage’s Latest Worry: Too Few Chips for Chip-Making | W
Corporate finance
BP Takes $25.5 Billion Hit From Russia Exit | W
Virus
U.S. CDC says travelers should still wear masks on airplanes | R
