The New York Federal Reserve said Thursday that pressure on global supply chains eased in July, reaching its lowest level since January 2021, as congestion at ports and other obstacles eased; This is in the latest data for a global indicator related to supply problems.
The pressure eased for the third month in a row, in an encouraging sign for policy makers at the Federal Reserve, who are keen to ease supply chain problems to help tame inflation that has reached four-decade highs in the world’s largest economy.
The Federal Reserve’s Global Supply Chain Stress Index combines data on shipping costs, delivery times, delays and other statistics into a single metric and compares them to common standards.
The index has now fallen more than 50 percent from its highest level, which was recorded last December, but it is still well above the levels it was at before the start of the Covid-19 pandemic.
The data is consistent with a survey published by the Institute for Supply Management earlier this week, which also showed an improvement in the speed of supplier delivery.
The supply chain problem has become a major issue in the global recovery from the Corona pandemic, and in the efforts of the Federal Reserve and other major central banks to curb inflation.
The supply chain problem worsened earlier in the year; China’s lockdown measures to tackle the spread of the coronavirus and the war in Ukraine have extended delivery times.
The US central bank and other central banks have already begun to raise interest rates more quickly in an attempt to curb demand for goods and services with the hope of solving the supply chain problem in order to achieve a better balance in economies.
(Archyde.com)
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US central bank
The US Federal Reserve raises interest rates for the fourth time in a row
written by Alexandra Hartman Editor-in-Chief
08:06 PM
Wednesday 27 July 2022
Cairo – Agencies:
The Federal Reserve – the US central bank – decided to raise the interest rate by 0.75% for the fourth time in a row since the beginning of this year.
This comes following the annual inflation rate in the United States reached its highest level in more than 40 years last June at 9.1%, compared to 8.8% in May.
The Federal Reserve raised interest rates for the first time in nearly 4 years last March by 0.25%, and by 0.5% at the May meeting, then by 0.75% in June, the highest rate since 1994.
Oil rises two dollars, supported by the decline in the dollar and concern about the policy of the US Central
written by Alexandra Hartman Editor-in-Chief
Oil prices rise $2 a barrel on supply concerns, weaker US dollar and initial gains for equity markets.
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Oil prices rose two dollars a barrel today, Monday
Oil prices rose $2 a barrel on Monday, supported by supply concerns, a weaker US dollar and initial gains for stock markets.
The price volatility has raised concerns that the demand for fuel may weaken if the Federal Reserve raises US interest rates at a strong pace.
Brent crude contracts, the global standard, ended the trading session up $1.95, or 1.9%, to settle at $105.15 a barrel.
US West Texas Intermediate crude contracts rose $2, or 2.1%, to settle at $96.70 a barrel.
“A slight decline in the US dollar and an improvement in stock markets are supporting oil,” said Giovanni Stonov, oil analyst at UBS.
After a strong start, US stocks turned lower in followingnoon trading, with investors cautious ahead of the US central bank meeting and results from a number of companies for growth this week.
Oil futures have been volatile in the past few weeks, with it under pressure from fears that rising interest rates may slow economic activity and fuel demand, but it is finding support from tight supply, especially since the start of the Russian military operation in Ukraine and the Western sanctions campaign once morest Moscow.
“The US and European economies are slowing, and with expectations that the Federal Reserve will raise interest rates once more this week, traders are staying very cautious,” said Dennis Kessler, vice president of trading at BOK Financial.
Federal Reserve officials indicated that “the Fed is likely to raise interest rates by 75 basis points at its meeting on July 26-27.
US Treasury: Economic growth is slowing down…there is a risk of recession
written by Alexandra Hartman Editor-in-Chief
US Treasury Secretary Janet Yellen admits that there is a risk of a recession in the US economy.
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US Treasury Secretary Janet Yellen
US Treasury Secretary Janet Yellen said today, Sunday, that “US economic growth is slowing”, and acknowledged the existence of “the risk of a recession,” adding that “a recession is not inevitable.”
Yellen told NBC that the strong US employment numbers and consumer spending showed that “the US economy is not in a recession right now.”
The significant rise in employment numbers in the United States in June continued, providing 372,000 jobs, and the unemployment rate stabilized at 3.6%. This was the fourth consecutive month that the number of new jobs exceeded 350,000.
Yellen, who previously chaired the US Federal Reserve, noted that the current economy “is not in a recession … but the country is in a transition period in which growth is slowing, and this is necessary and appropriate.”
and considered thatTo inflation “too highand that the latest interest rate increases are helping to rein in prices and bring them under control,” she said, adding: “I’m not saying that we will definitely avoid a recession…but I think there is a path that keeps the labor market strong and leads to lower inflation.”
US gross domestic product shrank at an annual rate of 1.6 percent in the first quarter, and Thursday’s report is expected to show a rise of just 0.4 percent in the second quarter, according to economists polled by Archyde.com.
The US Treasury Secretary pointed out that “even if the second quarter numbers are negative, this will not indicate a recession due to the strength of the labor market and increased demand,” adding that “the recession is a widespread weakness in the economy, we do not see that now.”
The US Federal Reserve hopes that it will once once more be able to slow inflation, without causing an economic contraction, while awaiting its approval. Significant increase in key interest ratesHowever, balancing the two approaches will be a delicate process.
This comes following US Federal Reserve Chairman Jerome Powell warned a few days ago that “the severity of inflation clearly surprised the monetary authorities,” warning of “the possibility of other surprises.”
and saw US Treasury Secretary Janet Yellenon Tuesday, that “the US economy is facing a number of global risks.”