Inflation is ready for prolongation-POLITICO

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Inflation is ready to prolong — Double-digit soaring used car prices and pandemic-affected service cost spikes could slow, but overall price increases are now expected to continue until next year. This is an excerpt from September’s CPI data released Wednesday, showing various situations regarding inflation. Although the price increase has slowed since the summer, it has increased by 5.4%, which is higher than expected from a year ago, which is the biggest rebound in 13 years. It exceeded the expectations of economists.

It is undeniable that rising prices are more sustainable than originally expected.Social Security Administration Announcement Retiree benefits surge 5.9% in 2022 Due to the adjustment of living expenses, the biggest profit in almost 40 years provided one indicator of how likely this will last. And now, many economists expect a unique combination of supply chain backlogs, sustained consumer demand, stagnant savings and labor shortages to keep inflation rising until 2022.

It is pressing the White House authorities to act Before voters blame them for higher prices in pumps and grocery stores. Biden administration officials are now trying to intervene in doing what they can to do in at least two ways: lowering gas prices and mitigating supply chain backlogs.

Our Ben Le Fabre Scoop: “The White House has been in talks with the oil industry to seek remedies for rising gasoline prices, as a surge in inflation could hurt economic recovery. Recent efforts on the oil industry have made the country It’s a thorny change for the Byden administration, which has been criticized by the industry and Republicans for promising to stay away from fossil fuels and suspending federal land lease sales for oil and gas development.

When Our Stephen Overly: “President Joe Biden is in a hurry to ease congestion across the complex US transportation supply chain as it could disrupt the holiday season for millions of Americans …. White House Relies heavily on port operators, carriers, and labor unions to unload ships 24 hours a day and carry cargo to warehouses nationwide … They announced Wednesday that additional retailers, long-distance We want to encourage truck companies and train operators to act until their entire supply chain works non-stop. “

Federal Reserve Paging — — Victoria Gida writes that the Federal Reserve Board sees inflation as being associated with these supply chain bottlenecks and should decline with the pandemic. But that can take a long time. According to the minutes of the Federal Reserve Board’s September meeting, Fed officials said from locals that “these bottlenecks will be completely resolved sometime next year or later. I didn’t expect it in general. “

Central banks continue to call current inflation temporary, but there is an option to raise interest rates in the second half of next year. The minutes show that the Fed decided in November to delay large-scale asset purchases each month, ending the process by mid-2022, and raising rates if policymakers wish to raise rates. He emphasized that he hopes to pave the way.

Happy thursday — I am very excited to be here as a guest host.Please send me a hint at [email protected] Also @mmcassella To Aubrey Eliza Weaver [email protected] Also @AubreeEWeaver..

Talking about sustainability — The Institute of International Finance is in the middle of its annual meeting this week, focusing on sustainable growth and stability in a “world of diversification, decarbonization, digitization and debt.”

Indeed, many things are happening. But we see that you don’t have to. Our Lorraine Woellert writes three points from the Wednesday Sustainability Panel.

Disclosure is confusing. There are few or no private markets. Many public companies do not participate in the industry framework. In addition, Axel Weber, chair of both the IIF and UBS Group, is working on more than 20 standards-setting efforts worldwide, including in the United States. “Maybe good things are better than perfect things. You have to start somewhere. You should start.”

There is A few progress. These 20+ taxonomies have a common core and provide a roadmap for investing in what Richard Mattison, president of S & P Global’s Sustainable1 Group, called the “dark green end of the taxonomy spectrum.” ..

The capital is idle. No funding has been invested due to lack of standardization and clear rules for roads. Lesliemers Dorp, Vice President and CFO of the New Development Bank, said:

The “terrible, crunchy” problem is complicated. Celine Herweijer, Group Chief Sustainability Officer at HSBC, summarized the complexity of the open issue. How much do companies need to disclose, what methodologies and scenarios do they need to use, and do targets need to be absolute or strength-based?

Example: In the long run, absolute emission reduction targets are needed. But, for example, the transition to the required electrification will boost total emissions in the short term.

IMF GEORGIEVA rejects China report — — Victoria Gida once again said: .. At the first press conference since the scandal broke out, George Eva was faced with questions about an investigation by World Bank law firm Wilmer Hale. “A report to promote China.”

Moderate Profit Breaks S & P 500 Loss Streak — — AP Damian J. Troise and Alex Veiga said: The benchmark index fell 0.5% early on and then rose 0.3%. It’s still at a pace due to a weekly loss of 0.6 percent. The Dow Jones Industrial Average ended flat and Nasdaq rose 0.7%.

“Most of the 11 sectors of the S & P 500 have risen, with technology and communications occupying a large share of profits. A mix of companies that rely on consumer spending has also helped lift the market. Financial and energy companies went bankrupt. Did.”

Shadowy Stock Market Malaise in the 70’s-Style Stagflation — — NYT Matt Phillips: “Vaccine obligations seem to be working, younger kids may be shot approved by Halloween, and the coronavirus seems to be retreating. But to these hopes The full signs herald a nasty new stage for a country’s economic recovery, and it puts Wall Street on the edge more than a few months ago. The Federal Reserve Board has seen rapid economic growth. While the pace seems to be slowing, it suggests that over the past 18 months, we may start dialing back programs that have helped support the market. ”

Manufacturer sues SEC over advisory rules — Our Kelly Maderich: “The National Association of Manufacturers was the first major industry challenge during SEC Chair Gary Gensler’s tenure on Wednesday, and Trump on the impact of investor advisory firms on public company shareholders. The business group said it sued the SEC for stopping the restrictions of the times. With a complaint against the SEC The agency torted the enforcement of the rules, Confirmed in July 2020.. “

Aiming to reverse ESG investment rules of the Ministry of Labor — — Kelly once again said: “Wednesday’s Ministry of Labor proposed revoking the Trump era rules that limit the ability of retirement plan advisors to consider climate change and social impacts when choosing to invest and vote for shareholder proposals. The rules that were made Clarify that environmental, social and governance elements are fair games For financial advisors. “

The SEC has adopted rules regarding disclosure of submission fees and payment methods. — Reuters Katanga Johnson: “The US Securities and Exchange Commission (SEC) merged and acquired on Wednesday with a solicitation, tender offer, and merger of registered securities by operating and investment companies.

“In an amendment to the SEC, which generally takes effect on January 31, 2022 and will undergo several updates over the next few years, filers will calculate filing fees in another interactive format called inline eXtensible Business Reporting. You need to provide the information you need for. Language (XBRL), the agency said. This change will improve the speed, accuracy, ease of use of financial disclosure and ultimately reduce costs. He added that this would improve submission fee preparation and payment processing. ”

But is the Fed’s view of inflation built on the sand? — WSJ’s Greg Ip: “Mainstream economics is full of the idea that“ everyone knows ”but that’s actually nonsense. It’s not an expert tweet or a scholar’s blog post. This is the opening line for research treatises published by the Federal Reserve System, the Vatican of mainstream economics. Staff economist Jeremy Rudd’s treatise focuses on what is believed to be a flaw in the Fed’s inflation outlook. However, his criticism is pervasive and accuses economists of making routine assumptions not because they fit the facts, but because they fit the models and theories. ”

Leonard Caul for better access to Native American credit — Reuters: “Federal Reserve Board Governor Lael Brainard said Wednesday that US financial regulators would try to improve access to the credit of the Native American community.“ We need to improve. We will continue to seek feedback, focusing on the best ways to encourage influential CRA (Community Reinvestment Act) activities in the United States, including building climate resilience, “Brenard prepared. I said in a statement.

Inflation is ready for prolongation-POLITICO

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