Rolling coverage of the latest economic and financial news
- Introduction: Iron ore prices plunge as China cracks down
- Full story: Bank of England head says drivers of inflation will not persist
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Inflation fears are easing today as commodity prices fall back from their recent peaks.
If the circumstances are serious, it shall be ordered to suspend business for rectification, or its business license shall be revoked and publicly exposed.
Stocks finishing strong. Currencies have been mostly boring all week. Check out the unwind in commodities though. Yikes. pic.twitter.com/FYlk5zP5ie
“So the really big question is, is [higher inflation] going to persist or not? Our view is that on the basis of what we’re seeing so far, we don’t think it is.”
Richmond Fed President Barkin said that he didn’t see persistent recurring inflation as likely, while later on Fed Reserve governor Waller joined the chorus saying that the rise in prices is “temporary”.
This comes even as he forecasts inflation remaining above the 2% target through 2022, though he acknowledged that persistent 4% monthly increase would be “very concerning”. Waller wants to observe a few months of economic data before calling any point an outlier or adjusting any policy stances.