Ann Saphir/Reuters
A quick recovery among the US s hardest-hit businesses could drive a faster-than-expected rebound for inflation, Esther George, president of the Federal Reserve Bank of Kansas City, said Tuesday.
The Fed aims to reach inflation of at least 2% before considering lifting its benchmark interest rate, but price growth has trended below that level for years and fell further at the start of the pandemic.
Struggling industries like travel and hospitality could be placing outsized downward pressure on inflation, George said. Inflation could approach the Committee s average inflation objective more quickly than some might expect, if vaccination and stimulus can swiftly revive these beleaguered sectors, she added in prepared remarks.
British Pound at Risk as Downing Street Weighs Tighter Restrictions
2021-01-11 07:30:00
Daniel Moss,
Analyst
British Pound, GBP/USD, GBP/JPY, Coronavirus Restrictions, Tier 4 Lockdowns – Talking Points:
Equity markets broadly lost ground during APAC trade as climbing US real yields weighed on global risk assets.
The potential tightening of coronavirus restrictions may undermine the British Pound in the coming days.
GBP/USD at risk of further losses after slipping back below 8-EMA.
GBP/JPY could slide lower as price fails to breach key resistance.
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Asia-Pacific Recap
Equity markets broadly lost ground during Asia-Pacific trade as investors weighed the impact of the notable spike in US Treasury yields on global risk assets. Australia’s ASX 200 index fell 0.9% despite better-than-expected retail sales data for November, while China’s CSI 300 index slipped 1.03% amid a fresh outbreak of coronavirus cases on the mainland.
Here’s what we’re watching ahead of the opening bell on Monday.
Futures tied to the S&P 500 slipped 0.9%, indicating the benchmark may fall from the all-time high it closed at on Friday. Contracts tied to the Nasdaq-100 edged 0.9% lower and those linked to the Dow Jones Industrial Average fell 0.9%.
Political rancor remains front and center, as the House may move to impeach President Trump as soon as this week.
What’s Coming Up Atlanta Fed President Raphael Bostic speaks on the economic outlook at 12 p.m., and Dallas Fed President Robert Kaplan speaks at a virtual town hall at 6 p.m.