Randal Quarles, vice chairman of Fed regulatory affairs, expects the imbalances related to the resumption of the US economy to cause prices to rise to subside in the next 12 to 18 months. We believe that the current supply chain imbalances that drive the temporarily high inflation data and the release of pent-up demand are temporary and will eventually be consumed to a more normal level. Quarles answered questions after a speech on the central bank's digital currency. All this will fade in a year and a half or so. 

"it is clear to me that we have made significant further progress on the Fed's inflation target," said Barkin, president of the Richmond Fed, and the labour market is likely to reach this point in the short term. On whether the Federal Open Market Committee (FOMC) is considering raising interest rates in 2022, he said: "I have already talked about the dislocation this year." I would like to say that let's look at the situation next year and see what happens. It would be great if the data met expectations. If they don't reach it, we have time. They will show that the economy still has more room for growth. "

Fitch said (CPI), the core US consumer price index, would rise further year-on-year in the coming months before falling in 2022. Fitch said core CPI growth was expected to rise to about 4.5 per cent year-on-year by the end of 2021, while overall CPI growth was expected to fall to 4.1 per cent based on oil price forecasts. Assuming that wage or rent increases do not rise sharply, core inflation is expected to fall to 2.5 per cent from mid-2022. Supply chain pressure shows no sign of abating and core commodity prices will continue to rise sharply in the coming months. 

Luis de Guindos, vice president of the European Central Bank, said, "We will pay attention to the following data information and will assess whether the temporary rise in inflation will lead to a second round of price increases, which will have a more lasting impact." The ECB expects "medium-term inflation to remain below target", "bank earnings prospects remain flat" and "profitability continues to be hampered by overcapacity. Banks operate in a highly competitive environment, and the revenue pressure comes not only from peers, but also from new entrants outside the industry.

The UK reported 22868 new cases of COVID-19 in a single day, the highest since January 30th, according to the latest figures. The latest national figures show that as of June 24, 1505 people had been hospitalized because of novel coronavirus. Three new deaths remain at a low level. More than 84 per cent of adults in the UK have received the first dose of the vaccine and nearly 62 per cent have completed both doses. 

If OPEC+ production remains stable, the global oil market will remain in short supply for the rest of the year, according to data to be evaluated by OPEC+ technical experts on Tuesday. The alliance, led by Saudi Arabia and Russia, is discussing resuming some of the suspended supplies in August as demand rebounds. Its joint technical committee will assess market conditions in preparation for the ministerial meeting on 1 July. Forecasts submitted to the Joint Technical Committee show a supply shortfall of about 1.7 million b / d in August and an average of 1.9 million b / d in the second half of the year, according to data seen by Bloomberg. The Committee will review and possibly confirm these projections.

Morgan Stanley doubled its quarterly dividend and announced stock buybacks of up to $12 billion, making it the first big US bank to respond to the success of this year's stress tests. "Morgan Stanley has accumulated a lot of excess capital over the past few years and now has one of the largest capital buffers in the industry," CEO James Gorman said in a statement on Monday. Big US banks announced their capital allocation plans on Monday after they were given the green light for the Fed to resume increasing dividends and share buybacks. 

Elvira Nabiullina, governor of Russia's central bank, said in an interview with Bloomberg television that Russian inflation had accelerated "significantly" and that further interest rate increases might be needed. Nabiullina says she intends to take a fast but predictable approach to interest rates; she says policy is still loose.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

JRFX is an online CFD broker providing more than 50 products for Forex, metals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now!