A Reuters poll found that with recession risks growing, the Fed will raise rates more than expected. At the last FOMC meeting, chairman Jerome Powell said a 75 basis point hike was not currently being considered. With inflation still running high, Reuters thinks that’s going to change. In other news, gold is set for its first weekly gain in five.

 

Reuters via U.S. News/Prerana Bhat and Indradip Chosh
Year-End View for Fed Policy Rate Rises Again as Recession Risks Remain – Reuters Poll

The U.S. Federal Reserve will lift interest rates higher by the end of this year than anticipated just a month ago, keeping alive already-significant risks of a recession, a Reuters poll of economists found.

While U.S. inflation, running at a four-decade high, may have peaked in March, the Fed’s 2% target is still far out of reach as disruptions to global supply chains continue to keep price rises elevated.

The May 12-18 Reuters poll showed a near-unanimous set of forecasts for a 50-basis-point hike in the fed funds rate, currently set at 0.75%-1.00%, at the June policy meeting following a similar move earlier this month. One forecaster anticipated a hike of 75 basis points.

You can read the full story, here.

 

AXIOS/Matt Phillips
Jerome Powell is living rent free in my head

I should have pulled the trigger when I had the chance. Not long ago, I was feeling flush, and toying with the idea of transforming my recent stock market gains into something my family sorely needed: an eat-in kitchen.

Why it matters: Aside from my personal quest to calmly stir mac-and-cheese while chatting with my wife and five-year-old daughter, our will-they-or-won’t-they renovation drama shows how Fed rate hikes turn human psychology into a tool of monetary policy.

State of play: Just a couple months ago, the financial logic for a renovation was clear and compelling.

Read the full story, here.

 

Reuters via CNBC
Gold dips; set for first weekly gain in five as dollar falls

Gold edged lower on Friday but prices were still set for their first weekly gain since mid-April, as the dollar receding from two-decade highs and mounting concerns over U.S. economic growth revived safe-haven demand.

Spot gold was down 0.2% at $1,838.81 per ounce, by 0258 GMT, tracking a slight uptick in the dollar on the day. U.S. gold futures edged 0.1% lower to $1,839.30.

Gold prices have climbed about 1.5% this week.

Continue reading, here.

 

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