Post-inflation challenges vex world’s top central bankers

Christine Lagarde, president of the European Central Bank, Kazuo Ueda, governor of the Bank of Japan, and Jerome Powell, Federal Reserve chairman, at the Jackson Hole economic symposium.THE world’s top central bankers stressed the need to keep interest rates high until inflation is contained—and wrestled with deeper economic shifts that will make their jobs harder.

A key theme emerging from the formal conference proceedings and conversations on the sidelines was difficulties adapting to forces outside the control of monetary authorities. The attendees discussed topics including productivity and innovation, bond-market structure, global supply chains and rising public debt levels.

The Fed and ECB are engaged in similar debates over whether to raise borrowing costs at policy meetings next month, even as the US economy has surprised with its resilience while Europe’s seems to be headed for a downturn. Lingering inflation in both jurisdictions and uncertainty over how quickly it will recede is the common challenge.

Powell’s and Lagarde’s colleagues, however, didn’t hesitate to weigh in on the cases for and against additional rate increases. In interviews, some—like Cleveland Fed President Loretta Mester and Bank of Latvia Governor Martins Kazaks—argued it was better to err on the side of higher rates, which could be reversed if necessary.

Among the issues that did permeate discussions over the weekend was trade. A variety of factors have caused trade in many developed markets to move away from traditional partners such as China, to countries like Vietnam or Mexico. Some economists believe this “nearshoring” or “friendshoring” could add to inflationary pressures.

Philippines Latest News, Philippines Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal judge to set date for US versus Trump trialWASHINGTON, DC—A federal judge is expected to set a date on Monday (Tuesday in Manla) for what could be one
Source: MlaStandard - 🏆 20. / 55 Read more »

Donald Trump federal election trial to start March 4, 2024, judge rulesThe ruling by US Judge Tanya Chutkan means that Trump will likely have to stand trial in at least three separate criminal cases during the thick of the Republican presidential nominating contest
Source: rapplerdotcom - 🏆 4. / 86 Read more »

Asian markets rally on Fed comment, China gets boostHONG KONG, China —Asian markets rose Monday after Federal Reserve chief Jerome Powell said officials would take a careful approach
Source: MlaStandard - 🏆 20. / 55 Read more »

HB: Free tuition for gov’t post-gradsRep. Brian Raymund Yamsuan of Bicol Saro has proposed a measure that aims to provide free tuition to government employees aspiring to complete
Source: MlaStandard - 🏆 20. / 55 Read more »

Thai cabinet takes shape with Srettha set to retain finance post | Pathom Sangwongwanich / Bloomberg NewsThe formation of a new coalition government in Thailand is gathering momentum with Prime Minister Srettha Thavisin finalizing his cabinet lineup that will probably see the former property tycoon retaining control of the finance ministry to bolster growth through fiscal stimulus. The list of ministers and their portfolios is expected…
Source: BusinessMirror - 🏆 19. / 59 Read more »

Treasuries woo buyers as juicy yields offset Powell warning | Ruth Carson & Garfield Reynolds / BloombergBeaten-down US Treasuries are proving irresistible to some investors even after Federal Reserve Chair Jerome Powell said he’s ready to raise interest rates again to choke off inflation. Western Asset Management says bonds are set to outperform due to attractive yields, while JPMorgan Chase & Co. is keeping its bullish…
Source: BusinessMirror - 🏆 19. / 59 Read more »