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Federal Reserves Logan: Short-term political factors are not taken into account when setting interest rates.The Federal Reserve accepted a total of $1.447 billion from five counterparties in its fixed-rate reverse repurchase operations.According to CNBC, Alphabet raised $11 billion in a European bond offering, bringing its total global debt offerings to over $30 billion.On February 11th, Federal Reserve official Logan stated on Tuesday that she is "cautiously optimistic" that the Feds current policy rate level can push inflation back to the 2% target while maintaining a stable job market. Economic data in the coming months will test this assessment. Logan stated, "If this happens, it would indicate that our current policy stance is appropriate and that we dont need to cut rates further to achieve our dual mandate." However, she added that if inflation falls while the labor market cools significantly, "further rate cuts might become appropriate. Right now, however, Im more concerned that inflation remains stubbornly high." She noted that after three rate cuts last year, downside risks to the labor market "appear to have eased significantly," but this has also introduced additional risks to inflation. She pointed out that with short-term borrowing costs already in what is widely considered a "neutral" policy range, current interest rates have limited restraining effect on the already strongly rebounding economy and inflation that has consistently exceeded the Feds target for nearly five years. Logan expects inflation to make progress this year, with some initial signs of improvement already observed.Federal Reserves Logan: A central clearing mechanism should be provided for the Feds standing repurchase facility.

Natural Gas prices fall below $2.70 despite USD Index attempts to recover, and demand concerns grow

Alina Haynes

Mar 14, 2023 13:12

截屏2023-01-19 下午3.42.24.png 

 

After a perpendicular recovery to close to $2.70 in the Asian session, Natural Gas futures have turned sideways. Weakness in the US Dollar Index (DXY), in general, has aided the upward bias in natural gas prices. Natural Gas futures appear vulnerable near $2.70 as the USD Index has demonstrated a recovery move to near 103.90 as investors become anxious ahead of the release of the United States Consumer Price Index (CPI) data.

 

The Federal Reserve's decision to raise interest rates is anticipated to have a negative impact on industrial demand for natural gas (Fed). The market anticipates that Fed chair Jerome Powell's scheduled rate hikes will lead to a recession in the near future.

 

Meanwhile, Winter is nearing its conclusion and summer has not yet arrived. Consequently, demand for residential purposes to heat domestic spaces will remain low. Additionally, because residences will require less electricity to operate air conditioners, power companies are less reliant on natural gas.

 

The recent decline in the USD Index is what has given Natural Gas prices new life. The US Energy Information Administration's (EIA) inventory data, which is released every Thursday, will dominate this week's trading in Natural Gas futures.

 

Going forward, investors eagerly anticipate the publication of US inflation data in order to form a new consensus. According to the projections, the headline CPI could fall to 6.0% from the previous release of 6.4%. And, core inflation, which excludes crude and food prices, is anticipated to decrease slightly to 5.5% from the previous release of 5.6%.

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