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Powell stresses the need for political independence for the Federal Reserve while addressing inflation

US Federal Reserve Chairman Jerome Powell attends a press conference in Washington, D.C. on December 14, 2022.

Liu Ji | Xinhua News Agency | Getty Images

Federal Reserve Chairman Jerome Powell on Tuesday stressed the need for the central bank to free itself from political influence while dealing with persistently high inflation.

In a speech to Sweden’s Riksbank, Powell noted that price stability requires making tough decisions that may be politically unpopular.

“Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. But restoring price stability when inflation is high can require uncommon actions in the short term where we raise interest rates to slow the economy,” the chair said in prepared remarks.

The letter contained no direct clues about what policy awaits the Federal Reserve, which raised interest rates seven times in 2022, a total of 4.25 percentage points, and indicated that more hikes are likely on the way this year.

Read the full story here.

Hedge fund manager says Tesla stock has been ‘less than a disaster’

David Neuhauser, chief investment officer at hedge fund Livermore Partners, said Tesla shares were a “disaster” for investors after shares in the company fell more than 65% in the past year. Neuhauser has downgraded Tesla shares.

The hedge fund manager says Tesla stock was

ECB economist says interest rates should rise ‘significantly’

European Central Bank economist Isabel Schnabel said at an event organized by Sweden’s Riksbank that European interest rates would still “have to rise significantly” to bring inflation down to 2% “in due time”.

She said that the bank’s inaction now will only mean bolder action at a later stage, which will affect both the broader economy and the green energy transition.

Schnabel added that the European Central Bank needs to step up efforts to green its stock of bonds.

– Hannah Ward Glinton

‘Maybe quick and dirty’: How Macron might get through a major pension reform

Renaud Foccart, Senior Lecturer in Economics at Lancaster University, explains what to expect from French President Emmanuel Macron’s upcoming pension reform.

Stocks on the go: Euronav down 20%, Games Workshop down 5%

shares euronav It fell more than 20% in early trading after the Norwegian competitor front line pulled out of a potential $4.2 billion merger with the Belgian oil shipping company.

British Maneuver Manufacturer Games Workshop It fell 5.6% after the half-year earnings report.

– Elliott Smith

CNBC Pro: Platinum prices are going up. These Buy-rated stocks with an uptrend can be a way to take advantage of them

Consumers see inflation and spending falling next year, according to a New York Federal Reserve survey

CNBC Pro: China’s reopening has Wall Street excited. Here’s how the pros play it

Beijing’s abrupt and rapid dismantling of its tough Covid-19 controls after nearly three years has raised hopes that its battered economy may follow a similarly rapid pace of recovery.

From hotels and airlines, to the “less visible beneficiaries,” Wall Street analysts are naming the most important Chinese and global stocks for the reopening play.

Professional subscribers can read more here.

– Xavier Ong

European Markets: Here are the opening calls

European markets are heading for a lower open as investors brace for more inflation data later this week, with US consumer price data for December due Thursday.

United kingdom FTSE 100 index The index is expected to open 49 points lower at 7676, the German Dax 95 points lower at 14698, France kk Down 52 points at 6855 and Italy FTSE MIB It fell 204 points at 25,181, according to IG data.

Data released on Tuesday includes Dutch inflation figures for December and British Retail Consortium retail sales figures for December. Airbus You will announce annual commercial aircraft orders and deliveries.

– Holly Ellytt

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