1) Fed expects rate hike in late March
The U.S. Federal Reserve Jerome Powell said that the central bank expects to raise interest rates later this month to ease the hot inflation amid a tight labor market, while the invasion of Russia in Ukraine has added uncertainty to the U.S. outlook.
Powell noted that the labor market is extremely tight, which was seen by economists as a signal to lawmakers that the central bank has reached its maximum employment goal in current conditions, which opens the door to its inflation fight.
In addition, Powell did not give a hint of timing on balance-sheet reduction.
2) Russia condemns Germany for suspending Nord Stream 2
The Russian foreign ministry said that Moscow considers Berlin’s suspension of the certification process of Nord Stream 2 unacceptable and Germany will bear responsibility for consequences.
Gas prices would rise sharply in Europe if Berlin withdraws from Nord Stream 2, he added.
3) China’s banking and insurance regulator will not financially sanction Russia
China’s banking and insurance regulator said on Wednesday that the country opposes and will not join financial sanctions against Russia, according to Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission as well as Chinese Communist Party secretary of the People’s Bank of China.
In the early days of the invasion, China’s Ministry of Foreign Affairs refused to call Russia’s attack on Ukraine an invasion and was more inclined to a negotiation path.
4) Oil reaches $116 as OPEC+ maintains pace on output increasing
Oil prices extended their gains on Thursday with Brent rising above $116 a barrel and WTI to $114 as trade disruption and shipping issues from Russian sanctions over the Ukraine crisis triggered supply concerns.
The OPEC and its allies including Russia decided to maintain an increase in output by 400,000 barrels per day in March despite the price surge.
