- Fed Barkin said a 50 or 75bp rate rise by the Fed in July is “reasonable”.
- President Biden said Chevron chief is “sensitive” after he criticised the US administration’s energy policy, there is a meeting Thursday between the energy secretary and senior industry executives; Biden is expected to back a federal gas tax holiday
- UK signed a £1bn deal with Moderna for a new vaccine centre.
- BOJ Minutes for April 27/28 meeting shows yen’s rapid decline was a key topic.
- Boris Johnson believes the government must win their battle with the rail unions and he is prepared for the stand-off to last months.
1. The Fed
Powell got tough with the markets last week but this week he faces his toughest audience – Congress. With the mid-term elections less than six months away, the politicians will be challenging him over how the economy can hope to avoid a hard landing now that interest rates are climbing at the same time as inflation. This is why the third sentence of Powell’s opening statement was “We at the Fed understand the hardship high inflation is causing”. Expect more of this when he is interrogated by the Senate on Wednesday and . . .
On this day in 1948 HMT Empire Windrush brought the first brought the first group of 802 West Indian immigrants to Tilbury, marking the start of modern immigration to the United Kingdom.