Most Fed officials at this month's meeting agreed that the Fed needs to raise rates by 50 basis points at each of the next two meetings, and that a series of sharp tightening actions would give policymakers flexibility later if necessary." Shift". The minutes of the Fed’s May 3-4 meeting released in Washington on Wednesday showed that “most participants believe that a 50 basis point rate hike may be appropriate at each of the next two meetings. Many participants predicted an accelerated withdrawal of A supportive monetary policy will put the committee in a good position later this year to better assess the impact of policy tightening and the extent to which economic developments can support policy adjustments." U.S. bond yields fluctuated after the minutes were released , the stock market rose, the dollar pared gains. Markets still expect traders to hike rates by a combined 100 basis points at the next two meetings.

U.S. tariff assessments on more than $300 billion in Chinese imports could take months, said Greta Peisch, general counsel at the Office of the U.S. Trade Representative. The move would not prevent the Biden administration from taking other steps, such as implementing a tariff exclusion process based on the analysis, Peisch said Wednesday at an event hosted by Georgetown University Law School. "We hope to have an assessment as soon as possible," she said. "To a certain extent, this will be affected by the number of responses we receive. Combing through those responses analytically makes sure we have a very good process for considering them, which can take months but we want to get it done as quickly as possible. Earlier this month, the Biden administration said it was taking the first steps toward a tariff review. The review process is part of a U.S. move to prevent additional tariffs on China from automatically expiring in July. For industry representatives who have benefited from Trump-era tariffs, comments and requests for continued tariffs have until July 6.

Natural gas prices in the U.S. market extended their astonishing gains, topping $9 per million British thermal units for the first time since 2008, as concerns over supply shortages intensified. U.S. natural gas inventories were below normal levels for the period as exports surged to record levels but production from shale basins remained subdued. Drought conditions on the U.S. West Coast are expected to curb hydropower generation, while hotter-than-normal weather in the East is expected to increase demand for air conditioning and natural gas. The Russian invasion of Ukraine has exacerbated the energy shortage, sending global gas prices soaring and prompting buyers in Europe and Asia to scramble for U.S. LNG supplies.

The U.S. federal budget deficit will plummet to about $1 trillion this year as tax revenue surges and coronavirus relief programs expire, the Congressional Budget Office said. The budget deficit will also narrow to $984 billion in fiscal 2023, which begins Oct. 1, according to forecasts released by the Congressional Budget Office on Wednesday. The deficit this year and next will be significantly lower than the $2.8 trillion in fiscal 2021. "The budget deficit as a percentage of GDP will continue to decline next year as pandemic-related spending decreases, but then the deficit will increase, reaching 6.1 percent of GDP by 2032," the nonpartisan congressional agency said in its 10-year economic and budget forecasts report. . Part of the reason for the decline in the deficit is a surge in tax revenue that has pushed the federal revenue/GDP ratio to its highest level in 20 years. But the long-term outlook is bleak, with deficits set to increase as inflation rises (which will push up Social Security costs) and interest rates on the federal debt rise.

The U.S. envoy for Iran nuclear deal talks said efforts to revive the 2015 pact were hesitant, but argued that a “limited” easing of sanctions on Iran could still salvage the deal and build the foundations for a broader deal. Special envoy Robert Malley testified to the Senate Foreign Relations Committee on Wednesday that restarting the JCPOA would help curb Iran's nuclear activities, which had intensified after former President Donald Trump's decision to withdraw from the deal in 2018. But Malley said the on-and-off talks in Vienna for more than a year appeared to have lost momentum and time was running out. “At this point, we haven’t reached a deal, and the prospect of a deal is slim at best,” Malley said.

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