News You Need To Know on Jan. 10, 2023

Prior to the release of the Consumer Price Index (CPI) for the month of December on Thursday, policy makers of Federal Reserve have offered clues about the central bank’s direction. This morning, Fed Chair Jerome Powell while talking in Sweden said that bringing down inflation may include steps that are “not popular”, refer to the increase in bank rate.

Mary Daily, president of San Francisco Fed, suggested in an interview this week that an increase in slow rate could be a good idea, but the fed would need to promote the fed “until the job is well and really really.”

Investors are stopping their breath. They are worried that the central bank can increase its inflationary fight very far and rapidly rates, possibly the US economy too much slower and is sending us on the path of recession. Thursday’s CPI report will provide more clues to investors. The major decline in inflation will promote optimism that the fed will not proceed, while a report that misses the economist’s expectations may indicate that the bank may increase us even greater rates.

The World Bank today said that to increase rates to fight inflation in our central bank and abroad, global economic growth is slow. This now slows down global development by 1.7%, a major decline from 3% GDP (GDP) growth is estimated that the bank created in June. Outside the global recession, it is the weakest forecast in three decades. Here in the US, the World Bank has increased the estimate of GDP growth only 0.5%.