Good morning. Softer inflation but Fed will keep raising rates, the Rhine River will soon be impassable, Pelosi giving Biden headache, and Russia resumes oil flows to central Europe. Here’s what people are talking about.
The US central bank will stick to its guns and continue hiking interest rates despite softening inflation, according to two Federal Reserve officials. The figures, which came in below forecasters’ estimates, prompted investors to scale back rate bets, but Minneapolis Fed President Neel Kashkari hasn’t seen anything that changes the path. Kashkari wants the Fed’s benchmark interest rate at 3.9% by the end of this year and at 4.4% by the end of 2023. Charles Evans, his Chicago counterpart, expects the target range to rise to 3.25% to 3.5% by the end of 2022 and to 3.75% to 4% by the end of 2023.