Good day. Last week's news that the presidents of two regional
Federal Reserve banks actively traded in financial markets has
prompted the Fed to review its rules regarding the financial
activities of its officials. "This review will assist in
identifying ways to further tighten those rules and standards," a
Fed spokesperson said, adding the central bank "will make changes,
as appropriate, and any changes will be added to the Reserve Bank
Code of Conduct." Meanwhile, government data on Thursday showed the
U.S. economy proving resilient despite the Delta variant, with
shoppers increasing their spending at retailers and initial jobless
claims -- a proxy for layoffs -- holding near a pandemic low.
Now on to today's news and analysis.
Fed to Review Financial Trading Rules for Officials
The Federal Reserve is launching a review of its internal rules
governing the financial activities of its officials in the wake of
news last week that the leaders of the Dallas and Boston regional
Fed banks actively traded in financial markets.
"Because the trust of the American people is essential for the
Federal Reserve to effectively carry out our important mission,
Chair [Jerome] Powell late last week directed Board staff to take a
fresh and comprehensive look at the ethics rules around permissible
financial holdings and activities by senior Fed officials," a Fed
spokesperson said Thursday.
U.S. Economy Shows Resilience During Delta Surge
Americans briskly increased spending at retailers last month,
while employers have largely resisted the urge to lay off workers,
the government reported Thursday, both signs of strong demand in
Glynn's Take: Review of RBA Is Something for Post-Covid Era
By James Glynn
Calls for a thorough review of the Reserve Bank of Australia's
practices reached fever pitch this week amid suggestions that it is
failing in key areas of its policy remit. Read More.
Key Developments Around the World
Energy Price Crunch Pushes Investors in Europe to Bet on
Record-breaking energy prices are driving bond investors to bet
on a jump in eurozone inflation in the coming months, turning the
trade bloc's narrative of superlow price growth on its head, at
Surging Energy Prices Close U.K. Factories
Biden Steps Up Efforts to Advance $3.5 Trillion Spending
President Biden is taking a more public role in the negotiations
around Democrats' roughly $3.5 trillion social welfare and climate
bill, touting proposals to increase taxes on high-income households
and U.S. companies to finance it.
China Seeks to Join Pacific Trade Pact After U.S. Forms New
China has formally applied to join an 11-nation Asia-Pacific
trade pact, seeking to draw traditional U.S. allies into its
economic orbit as competition for alliances heats up between
Beijing and Washington.
China Casts Itself as Ally to Workers in Battle With Big
China's communist state has made a show of supporting the
lowest-level workers in the country's bare-knuckle tech industry,
an emerging plank in leader Xi Jinping's campaign to usher in a new
era of "common prosperity."
World Bank Cancels Flagship 'Doing Business' Report After
The World Bank canceled a prominent report rating the business
environment of the world's countries after an investigation
concluded senior bank management pressured staff to alter data
affecting the ranking of China and other nations.
Financial Regulation Roundup
Democrats Rethink Climate Measures, Consider Carbon Tax
Democrats are taking a fresh look at their proposals for
reducing carbon emissions in their $3.5 trillion spending package,
hoping to win over moderate party members who raised concerns about
elements of the plan.
Justice Department Fights Purdue Pharma Settlement
The Justice Department, contesting a roughly $4.5 billion
settlement that will shield the family who owns OxyContin maker
Purdue Pharma LP from opioid lawsuits, is seeking to pause the deal
until after federal appeals courts weigh in on it.
Friday (all times ET)
10 a.m.: University of Michigan releases preliminary September
U.S. consumer sentiment
Time N/A: U.S. Federal Reserve begins two-day policy meeting;
National Bank of Hungary releases policy statement; Bank Indonesia
releases policy statement; Central Bank of Nigeria releases policy
3:30 a.m.: Riksbank releases interest-rate decision and monetary
8:30 a.m.: U.S. Commerce Department releases August housing
America's Spending Wave Is Yet to Hit
The fact remains that many Americans have built up significant
savings since the Covid-19 crisis began, thanks both to an initial
sharp reduction in their spending and the large amount of income
relief, Justin Lahart writes.
Japan's exports climbed by double digits for the sixth straight
month in August, driven by strong demand for steel,
semiconductor-related products and auto parts in key overseas
markets, Ministry of Finance data showed. Exports rose 26.2% from
the same period a year earlier, easing from July's 37% increase.
(Dow Jones Newswires)
An unprecedented 61 boxships were waiting to berth at the ports
of Los Angeles and Long Beach Wednesday, with waiting times to
unload stretching to three weeks, according to shipping executives.
Eurozone exports rose by 1.0% in July from June, while imports
increased 0.3%, both adjusted for seasonal variations, the European
Union's statistics agency said, signaling that international goods
trading was on a weak footing despite the easing of most
coronavirus-related restrictions. (DJN)
Passenger-car registrations in the European Union fell 19% on
year in August, as EU markets showed a weak performance during the
summer amid a semiconductor shortage. Registrations, which reflect
sales, were recorded for 622,993 vehicles last month, the European
Automobile Manufacturers Association said Thursday. (DJN)
(END) Dow Jones Newswires
September 17, 2021 09:24 ET (13:24 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.