Here's What The Fed Minutes Tell Us

Here's What The Fed Minutes Tell Us By Hardika Singh

Minutes of the last Federal Reserve meeting revealed some officials were open to raising rates if inflation reaccelerated. Meanwhile, home sales declined last month, surprising housing analysts. And Citigroup agreed to pay U.K. regulators $78 million for a trader's "fat finger" trade. Read on for this news and more.

Top News Fed Officials Saw Longer Wait for Rate Cuts After Inflation Setbacks

Federal Reserve officials concluded at their most recent meeting they would need to hold interest rates at their current level for longer than they previously anticipated after a third straight disappointing inflation reading last month.

U.S. Economy Home Sales Fell Again in April After High Mortgage Rates Damped Activity

Home sales fell in April for the second straight month , as high mortgage rates and near-record home prices continue to stall the market during the prime selling season. Sales of previously owned homes decreased 1.9% from the prior month to a seasonally adjusted annual rate of 4.14 million, the National Association of Realtors said Wednesday.

Financial Regulation A $444 Billion 'Fat Finger' Trade Crashed Stocks. Now Citigroup Is Paying the Price.

Call it the $78 million typo. That is how much Citigroup agreed to pay U.K. regulators for a trader's fat finger when typing in an order to sell shares, an episode that caused a brief "flash crash" in European stocks.

In May 2022, the unnamed trader in Citigroup's global markets unit was working from home in London on a public holiday, The Wall Street Journal previously reported.

Forward Guidance Thursday (all times ET)

10 a.m.: U.S. new-home sales for April

Friday

8:30 a.m.: U.S. durable goods for April

10 a.m.: University of Michigan consumer survey for May, final

Research U.S. Inflation Expected to Settle Higher Than Target

Inflation in the U.S. is likely to settle around 3% rather than the Fed's 2% target, TS Lombard's Freya Beamish and Alexandros Xenofontos say in a report. Policy makers have insisted they want to bring inflation down to 2%, but Beamish and Xenofontos see "continued excess dollar liquidity" keeping prices rising faster, "even if the latest print was more benign than the 4% implied by the Q1 data, as we expected." - Paulo Trevisani

Basis Points If the U.S. economy is headed for trouble , no one told the junk-bond market. The premium that investors demand to hold debt from sub-investment-grade companies instead of relatively safe Treasurys has shrunk to near pandemic-era lows, a sign of dwindling worries about an economic slowdown that would cause a big jump in defaults and bankruptcies. - Vicky Ge Huang In an era of high prices, payday comes with baggage . We trod through the streets in San Francisco to ask people how much they make, whether it feels like enough and their plans for the future. Their answers have been edited for clarity and length. Income is monthly, after taxes. - Angel Au-Yeung Singapore's economy looks on track for a strong year , with hopes underpinned by better-than-expected growth, steadying inflation and improving trade. - Amanda Lee and Fabiana Negrin Ochoa Germany led a continued recovery in eurozone economic activity in May, according to business surveys, adding to signs that global growth is becoming less reliant on the U.S. - Joshua Kirby South Korea's central bank held its base rate steady as widely expected and raised its 2024 economic growth forecast, signaling a delay in its pivot toward policy easing. - Kwanwoo Jun Australia's economy continues to register a clear and detectable pulse, with purchasing managers index data for May remaining firmly in expansionary territory . - James Glynn About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

05-23-24 0715ET