Many experts expect the Fed to continue with its higher interest rate hikes. Chicago Fed President Charles Evans is adding some validity to that, saying he sees the Fed hiking rates to 3.25%-3.5% this year and to 3.75%-4% by the end of next year. In other news, Fox News reports that energy industry officials are ringing alarm bells that the Inflation Reduction Act will handicap their industry at the onset of a recession. “We believe on balance that this bill is going to do more harm than good for America’s energy sector, given the increase in taxes and fees that are going to hit many American energy producers,” American Exploration and Production Council CEO Anne Bradbury told FOX Business.

 

Yahoo Finance/Ann Saphir
Fed to raise interest rates to 4% next year, Evans says

Wednesday’s consumer price index report showing U.S. inflation didn’t accelerate in July was the first “positive” reading on price pressures since the Federal Reserve began tightening policy, Chicago Fed President Charles Evans said, even as he signaled he believes the Fed has plenty more work to do.

With consumer prices unchanged last month compared to June, but up 8.5% from a year earlier, inflation is still “unacceptably” high, and the Fed will likely need to lift its policy rate, currently in the 2.25%-2.5% range, to 3.25%-3.5% this year and to 3.75%-4% by the end of next year, Evans said.

Continue reading, here.

 

Fox Business/Megan Henney
Energy reps say Dems’ spending, tax and climate bill ‘bad idea’ during recession as House preps final vote

With the House of Representatives set to pass Democrats’ social spending, tax and climate bill Friday, energy industry officials are ringing alarm bills that it will handicap their industry at the onset of a recession.

“We believe on balance that this bill is going to do more harm than good for America’s energy sector, given the increase in taxes and fees that are going to hit many American energy producers,” American Exploration and Production Council CEO Anne Bradbury told FOX Business.

“With the potential that we are in a recession now, we think that it is a bad idea to be raising taxes on American companies, including American energy producers.”

Keep reading, here.

 

CNBC/Sumathi Bala
Fed expected to stick with hawkish rate hikes until data show further slowing in inflation

The Federal Reserve is unlikely to pivot from its hawkish interest rate hikes despite positive signs this week that inflation in the U.S. could be easing, according to market strategists.

On Thursday, the producer price index surprisingly fell 0.5% in July from the prior month, compared with an estimate of a 0.2% gain, according to a Dow Jones survey. On an annual basis, the index rose 9.8%, the lowest rate since October 2021.

That followed encouraging data that showed consumer prices rose 8.5% in July. The rate was slightly cooler than the 8.7% expected by analysts surveyed by Dow Jones and a slowing pace from the prior month.

You can read the full article, here.

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