SHANGHAI, May 21 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar maintained last week’s gains as investors awaited developments in US-China trade negotiations and the Federal Reserve’s stance on interest-rate policy.
LME base metals extended their declines as aluminium lost 2.29%, lead fell 1.04%, zinc dropped 0.81%, copper decreased 0.39%, nickel dipped 0.13%, and tin edged down. SHFE metals also closed lower across the board as zinc and lead slid over 1%, aluminium fell 0.31%, copper lost 0.23%, nickel and tin declined 0.15%.
In an interview with German daily Handelsblatt, James Bullard, president of the St. Louis Federal Reserve, said that he was worried about low core inflation and added that he would get more aggressive in pushing the FOMC to lower the policy rate if low inflation persisted.
"On the inflation part of our mandate our preferred measure of inflation which is core PCE inflation is only running at 1.6% year-over-year," Bullard explained. "This is a concern to me. I do think that this number plus relatively low inflation expectations warrant attention from the FOMC."
"If low inflation turns out to be persistent, I'll get more aggressive in pushing the FOMC to lower rates in reaction and try to recenter inflation expectations at 2%," said Bullard.
The US private sector's mounting debts pose a "moderate" risk to the world's largest economy, Federal Reserve Chairman Jerome Powell said Monday.
"As of now, business debt does not present the kind of elevated risks to the stability of the financial system that would lead to broad harm to households and businesses should conditions deteriorate," Powell said.
The US will release data on its pending home sales for April and its weekly crude inventories by API, and the eurozone will release data on its consumer confidence index for May.