In Hot Water.
The gift of birdsong.
1. Federal Reserve policymakers are poised to hike interest rates to the highest level in 22 years, while retaining a tightening bias that signals the possibility of an additional move later in the year. The Federal Open Market Committee is expected to raise rates a quarter point to the 5.25% to 5.5% range, an 11th increase since early 2022. It will release the decision at 2 p.m. in Washington. Chair Jerome Powell will hold a press conference 30 minutes later. (Source: bloomberg.com)
2. Pan Gongsheng has been named governor of the People’s Bank of China (PBOC), replacing Yi Gang, according to the central bank’s website. The appointment of Pan, Communist Party committee chief of the central bank, was approved at a Tuesday meeting of the Standing Committee of the National People’s Congress, China’s top legislature. The 60-year-old had been a deputy governor of the central bank since 2012. An industry insider told Caixin that his work experience at the PBOC and two of China’s “Big Four” state-owned commercial banks aligns with the traditional logic of selecting central bank governor. The leadership changes at the PBOC come at a crucial time for the Chinese economy, which is losing momentum after an initial post-pandemic rebound. The central bank is tasked with reining in major risks in the financial system, including those posed by the prolonged downturn in the property market. (Sources: caixinglobal.com, bloomberg.com)