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This Article is From Feb 04, 2022

U.S. Payrolls, Bailey’s Gradualism, Fed Nominees: Eco Day

U.S. Payrolls, Bailey’s Gradualism, Fed Nominees: Eco Day

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Welcome to Friday, Europe. Here's the latest news and analysis from Bloomberg Economics to help you start the day:

  • Between omicron, revisions and big seasonal factors, Friday's U.S. jobs report is poised to be a bit of a doozy
    • The January employment report, as weak as it may look, most likely will not derail Fed rates liftoff in March
  • European Central Bank President Christine Lagarde is no longer ruling out an interest-rate hike this year
  • Bank of England Governor Andrew Bailey said he favored moving interest rates gradually instead of delivering an unexpected shock to get inflation under control
    • Bailey called for workers to hold off on demands for higher pay, saying the nation needs to focus on keeping inflation in check
    • Global bond markets are being swept up in a fresh wave of selling as monetary policy normalization bets deepen everywhere
    • Two of President Joe Biden's nominees to the Federal Reserve could face a tough battle for confirmation after Republicans questioned their commitment to price stability and to keeping the Fed away from climate rules
      • Fed nominees all show a commitment to fighting inflation in accordance with Fed mandates, says Bloomberg Economics
      • Slow progress on a plan to help poorer countries restructure their debts is spurring concern, as a $35 billion bill comes due and U.S. interest-rate increases loom
      • Chile gets its first female central bank chief
      • Australia's central bank upgraded its inflation and employment outlook, while still seeing wage pressures building only gradually
      • South Korean consumer prices stayed well above the Bank of Korea's target in January, keeping the pressure on policy makers to keep tightening
      • ©2022 Bloomberg L.P.

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