Federal Reserve Watch for May 29: Overreacting to Energy Price Spike Could Depress Economic Growth Unnecessarily, Bowman Says

Fed Vice Chair for Supervision Michelle Bowman (voter) said that more clarity is needed on the situation in the Middle East before overreacting to a what could be a one-time spike in energy prices.

Recent comments of note:

(May 28) Fed Vice Chair Philip Jefferson (voter) said that he remains focused on bringing inflation down to the 2% goal but would not comment on the future path of monetary policy, saying that he is taking a meeting-by-meeting approach.

(May 28) Fed Governor Lisa Cook (voter) said that she is prepared to raise interest rates if inflation remains elevated but said that she is expecting inflation to slow without rate increases.

(May 28) St. Louis Fed President Alberto Musalem (nonvoter) said that inflation remains a concern and that returning inflation to the 2% goal is still a priority. Musalem was cautious about the role that productivity could play in lowering inflation.

(May 22) Fed Chair Kevin Warsh (voter) was sworn in, saying that he intends to be reform-oriented and abandoning old models that were not serving the Fed's mission.

(May 22) Fed Governor Christopher Waller (voter) suggested that the Fed's policy rate could remain on hold for some time, indicating that the risks are tilting back toward inflation. Waller also said that a rate increase is possible if inflation remains high rather than comes back down.

Daily Roundup of Key US Economic Data for May 29

Advance data for April showed the international trade deficit narrowed to $82.4 billion from $85.27 billion in March, reflecting a large increase in exports offset by a smaller increase in imports.In the same report, wholesale inventories rose by 0.5% in April after a 1.5% gain in March, while retail inventories increased by 0.7% after a 0.7% gain. Excluding motor vehicle sales, retail inventories would be up 0.6%.The Chicago PMI surged to 62.7 in May from 49.2 in April, the last regional manufacturing reading for the month. The ISM's national index is due to be released on June 1.The Q2 GDPnow estimate from the St. Louis Fed is for a 1.047% gain, revised down from 1.320% gain in the previous estimate.

Cargo Traffic to Los Angeles Port Expected to Rise in Week Ending June 13

Cargo traffic at the Port of Los Angeles is expected to rise in the week ending June 13, according to data from ship-tracking system Port Optimizer.A total of 147,242 20-foot equivalent units, a standardized measure of cargo capacity, are projected to reach the port in the week, the data showed. That volume reflects a 38% increase from the previous week and a 56% jump from a year earlier.Twenty-four freight vessels are scheduled to arrive at the port in the week ending June 13, the data showed. That compares with 18 vessels scheduled this week and 20 in the week ending June 6.

Federal Reserve Watch for May 29: Overreacting to Energy Price Spike Could Depress Economic Growth Unnecessarily, Bowman Says

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Daily Roundup of Key US Economic Data for May 29

Cargo Traffic to Los Angeles Port Expected to Rise in Week Ending June 13

St. Louis Fed US Q2 GDP Nowcast Estimate 1.047% Gain vs Previous 1.320% Gain

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International4d ago
Daily Roundup of Key US Economic Data for May 29
Advance data for April showed the international trade deficit narrowed to $82.4 billion from $85.27 billion in March, reflecting a large increase in exports offset by a smaller increase in imports.In the same report, wholesale inventories rose by 0.5% in April after a 1.5% gain in March, while retail inventories increased by 0.7% after a 0.7% gain. Excluding motor vehicle sales, retail inventories would be up 0.6%.The Chicago PMI surged to 62.7 in May from 49.2 in April, the last regional manufacturing reading for the month. The ISM's national index is due to be released on June 1.The Q2 GDPnow estimate from the St. Louis Fed is for a 1.047% gain, revised down from 1.320% gain in the previous estimate.

International4d ago
Cargo Traffic to Los Angeles Port Expected to Rise in Week Ending June 13
Cargo traffic at the Port of Los Angeles is expected to rise in the week ending June 13, according to data from ship-tracking system Port Optimizer.A total of 147,242 20-foot equivalent units, a standardized measure of cargo capacity, are projected to reach the port in the week, the data showed. That volume reflects a 38% increase from the previous week and a 56% jump from a year earlier.Twenty-four freight vessels are scheduled to arrive at the port in the week ending June 13, the data showed. That compares with 18 vessels scheduled this week and 20 in the week ending June 6.

International4d ago
St. Louis Fed US Q2 GDP Nowcast Estimate 1.047% Gain vs Previous 1.320% Gain