January 10 (Tuesday)

Latest Morning Briefing Executive Summary: Powell’s Conundrum
US bond markets haven’t responded as expected to the Fed’s warnings not to expect the federal funds rate to be lowered this year. Bond investors seem unfazed by this, which is fazing Fed Chair Jerome Powell. He’s been fretting that easy financial conditions aren’t what the Fed needs to see at this time of tightening by the Fed. It’s all reminiscent of “Greenspan’s conundrum” during the early 2000s. The bond market then too seemed unaffected by the Fed’s tightening. This time, Fed officials have turned more hawkish because investors aren’t listening to their warnings. Perhaps, Fed officials should listen to the bond market.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on January 9.

Markets
Stock sentiment is positive despite lousy headlines | CNN
Wall St rises as Fed’s Powell steers clear of monetary policy outlook | R
European Stocks Are Outshining U.S. Peers | W
Oil and Gas Are Back and Booming | W

Central banks
Powell says Fed might make unpopular decisions to stabilize prices | C
Transcript: San Francisco Fed President Mary Daly at WSJ Live Q&A Event | W
Fed’s Bowman says there’s ‘a lot more work to do’ to bring down inflation | C

Global
World Bank Cuts 2023 Global Growth Projection as Inflation Persists | W

US
Biden administration student loan plan could cut some payments in half | C
Opinion | FTC Chair Lina Khan on the Problems with Noncompetes | N

Europe
France’s government outlines plans to raise retirement age despite years of pushback | C

China
China suspends issuing visas in Japan and South Korea | R

Japan
How Japan Kept Inflation Rates Low | W

Industries & companies
Consumer discretionary: Coke, PepsiCo Are Target of Probe by Federal Trade Commission | W

Climate
Video: The Expensive And Harmful Truth About Electric Vehicles | YouTube (Forbes)