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Inflation Increasing Quicker Than Expected, Former Treasury Secretary Larry Summers Says

Font Size: Top American economist Larry Summers is sounding the alarm on rising U.S. inflation, saying that it is ticking up quicker than he originally expected. Inflation is increasingly a more concerning and larger threat as consumer prices continue to rise, former National Economic Council Director and Treasury Secretary Larry Summers told Axios on Monday. He also criticized the Federal Reserve’s policies, suggesting that its decision to keep interest rates low could harm the economy. “Data are pointing more towards higher inflation than I expected, and sooner,” Summers told Axios. “With more inflation signs sooner than I would have expected.”

S&P 500 Futures portray rejection of reflation fears with mild gains

5/6/2021 2:03:22 AM GMT | By Anil Panchal S&P 500 Futures gain 0.15% intraday, the most in a week. Fed policymakers, recently US data tame bond bears. Return of China, Japan after three-day off could magnify risk-on mood in Asia. Pre-BOE, NFP sentiment and covid woes can test momentum traders. S&P 500 Futures pick up bids around 4,165, up 0.15% on a day, during early Thursday. In doing so, the risk barometer follows its Wall Street benchmark that previously cheered receding odds of reflation and dialing back of the Fed’s easy-money policies. Be it Fed Governor Michelle Bowman or Boston Federal Reserve President Eric Rosengren, not to forget Fed Vice Chair Richard Clarida, all of them rejected challenges to the US central bank’s monetary policy status. The reflation risk gained momentum during late Tuesday on US Treasury Secretary Janet Yellen’s comments before the ex-Fed Chair reversed her moves and signaled not supporting the r

Fed s Rosengren: Significant slack remains in the economy

AUD/USD extends rebound to 0 7740 area ahead of US ADP and PMI data

May 5, 2021 12:51 GMTFXStreet News AUD/USD is edging higher following Tuesday’s sharp drop. US Dollar Index retreats from multi-week highs, holds above 91.00. Focus shifts to ADP and Services PMI data from US. The AUD/USD pair dropped to its lowest level since mid-April at 0.7676 on Tuesday and managed to stage a technical correction before closing in the negative territory above 0.7700. With the greenback losing interest on Wednesday, the pair extended its recovery on Wednesday and was last seen gaining 0.43% on the day at 0.7738. Improving market mood hurts USD Earlier in the day, the data from Australia showed that the Commonwealth Bank Services PMI rose to 58.8 in April. This reading came in slightly better than the market expectation of 58.6 and helped the AUD gather strength.

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