World stocks hit another record, oil up in big data week
Global stocks again hit a record high and oil rose on Tuesday, as markets shrugged off concerns about rising inflation and looked ahead to U.S. data later in the week that should offer a major clue to the health of the world economy.
Wall Street edges up as weekly jobless claims fall
U.S. stocks advanced modestly on Thursday, as data showing improvement in the labor market helped fuel expectations the economy continues to recover and spurred a small rotation towards stocks seen as more likely to benefit from the rebound.
Asia shares fall on worries over inflation, Fed outlook
Asian shares declined in early trade on Tuesday as Wall Street retreated on worries about accelerating inflation, prompting investors to cut back on their exposure to growth-focused stocks on bets of higher interest rates in the not-too-distant future.
Yellen sees no inflation problem after rate hike comments roil Wall Street
U.S. Treasury Secretary Janet Yellen said on Tuesday she sees no inflation problem brewing, downplaying earlier comments that rate hikes may be needed to stop the economy overheating as President Joe Biden’s spending plans boost growth. The initial comments made by Yellen, a former Federal Reserve chair, deepened a sell-off in tech stocks and pushed […]
Dollar stays firm as traders look to U.S. data for policy cues
The dollar clung to a recent bounce on Monday as investors made a cautious start to a week crammed with central bank meetings and big-ticket U.S. economic data, waiting for clues on the outlook for global inflation and for policymakers’ responses. Trade was thinned by holidays in Japan and China, which kept a lid on […]
Pitfalls of average inflation targeting when agents have imperfect knowledge
Recent challenges have generated interest in new monetary policy frameworks, including average inflation targeting. The Federal Reserve adopted this policy in 2020, but they have not communicated many details about the policy itself. This column argues that an opaque average inflation targeting policy can de-anchor inflation expectations from the target equilibrium – even if expectations are initially well-anchored. Policymakers should be cautious when implementing average inflation targeting.
