Powell Sees More Inflation Improvement
2 hr 14 min ago
Inflation has cooled and the economy may be on the way to a “soft landing,” said Federal Reserve Chair Jerome Powell Monday.
The most recent Consumer Price Index (CPI) report was another in a series of improving inflation readings that boosted confidence among central bankers. Easing price pressures are a key requirement that Powell and other Fed members have said they need before moving to cut interest rates.
“We’ve had now three better readings, and if you average them, that’s a pretty good pace,” Powell said during an interview before the Economic Club of Washington, D.C. “The three readings in the second quarter, including the one from last week, do add somewhat to confidence.”
-Terry Lane
China’s Economy Grows Slower Than Expected
3 hr 26 min ago
China’s gross domestic product (GDP) rose 4.7% year-over-year in the second quarter, below expectation, as a prolonged real estate slump and trade tensions continue to weigh.
The rise was smaller than the 5.3% growth recorded in the first quarter and below the 5.0% figure expected by economists surveyed by The Wall Street Journal.
Much of China’s growth in the second quarter continued to be driven by manufacturing and Beijing’s push to sell products with cutting-edge technology, including electric vehicles (EVs). That focus, however, has led Western countries to push back, with officials including U.S. Treasury Secretary Janet Yellen accusing China of creating excess capacity.
Read more about the implications for China’s GDP report here.
-Nisha Gopalan