Federal Reserve Governor Christopher Waller, an influential voice in policymaking who until recently had advocated for lower interest rates, on Friday said the Fed should axe the "easing bias" from its policy statement and effectively open the door to a possible rate hike.
State-level data released by the Bureau of Labor Statistics Friday showed the unemployment rate fell in three states in April, rose in two and held steady elsewhere. The largest unemployment rate decline was in Ohio, where it fell by 0.2 percentage point, while the unemployment rate rose by 0.2 percentage point in Connecticut.
The University of Michigan consumer sentiment index was revised downward Friday to a reading of 44.8 for May from 48.2 in the preliminary estimate, compared with expectation for no revision in a survey compiled by Bloomberg. That was a decrease from the final reading of 49.8 in April.
NEW YORK, May 22, 2026 The Conference Board Leading Economic Index? for the US rose slightly by 0.1% in April 2026 to 97.4, following a 0.6% decline in March.
* UBS Global Wealth lifts S&P 500 2026 target to 7,900 from 7,500 pts. * Est?e Lauder jumps after ending merger talks with Puig. * Kevin Warsh to be sworn in as Fed chair later in the day. * Indexes up: Dow 0.6%, S&P 500 0.7%, Nasdaq 0.7% By Shashwat Chauhan and Medha Singh.
Inflation may be grabbing the headlines, but some bond investors are already looking beyond the next Consumer Price Index report. A less-discussed risk is beginning to emerge in the Treasury market: supply.
Statistics Canada's flash estimate pointed to an increase of 0.6% in retail sales for April, which in light of a 0.7% rise in goods prices over the month implies that volumes fell slightly, noted Oskar Stone over at Desjardins following the release of the latest retail sales data.
* U.S. dollar holds near six-week high. * CME FedWatch predicts 58% chance of at least one U.S. rate hike this year. * Trump to swear in Warsh as Fed chair later in the day. * Price volatility subdues Indian demand. By Ishaan Arora.
The inflation effect was expected in March and is going to carry through to April with the CPI showing goods prices rising a cumulative 1.8% through these two months, noted TD Economics following the release of the latest Canadian retail sales data. "The sinking volumes figures suggest consumers are already cutting back, as higher energy prices eat into budgets," the bank said.
Mexican consumer prices fell 0.16% in the first half of May, national statistics agency INEGI said on Friday, broadly in line with expectations of a 0.15% drop in a Reuters poll of economists. * Annual inflation 4.11%, after 4.53% last month, vs economists' expectations of 4.13% * Analysts had said seasonal electricity subsidies in some states would drive prices down.
Kevin Warsh has been a sharp critic of the Federal Reserve for the last 15 years, ever since leaving his job there as a governor in 2011. INFLATION IS A 'CHOICE' "Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish," Warsh said in his written testimony for his confirmation hearing last month.
* Warsh lays inflation overshoot at Fed's feet, rejects supply chain explanations. * He opposes forward guidance, favors less communication on policy intentions. * Warsh urges balance sheet reduction, questions reliance on precise economic data. Kevin Warsh has been a sharp critic of the Federal Reserve for the last 15 years, ever since leaving his job there as a governor in 2011.
The US dollar rose against its major trading partners early Friday ahead of the release of the final University of Michigan consumer sentiment reading for May, state-level unemployment data for April, and leading indicators data for April, all at 10:00 am ET.
UK's blue-chip FTSE 100 index was on course to end a four-week losing streak after data released this week weakened expectations of a Bank of England rate hike, giving relief to investors unsettled by political uncertainty.
* UBS Global Wealth Management lifts S&P 500 2026 target to 7,900 from 7,500 pts. * Est?e Lauder jumps after ending merger talks with Puig. * Kevin Warsh to be sworn in as Federal Reserve chair later in the day. * Futures up: Dow 0.2%, S&P 500 0.1%, Nasdaq 0.1% By Shashwat Chauhan.
Kevin Warsh, whose broad criticism of current U.S. Federal Reserve officials, playbook for rate cuts and ties to President Donald Trump elevated him past other contenders to lead the central bank, will be sworn in as Fed leader Friday at a pivotal moment for monetary?policy and the American economy.
* Warsh set for Friday morning swearing in at White House. * AI boom and external shocks complicate inflation outlook for Fed. * Warsh facing pressure from markets, colleagues, over rate decisions. * Fed's Waller, a key voice, updates views today. By Howard Schneider.
Societe Generale in its early Friday economic news summary pointed out: -- Risk tone positive, Brent closed below 50dma on Thursday. -- Japan headline consumer price index slows to 1.4% year over year in April. -- Day ahead: Federal Reserve speaker Waller. -- Nikkei +2.7%, EUR 10-year IRS -2.5bps at 3.10%, Brent crude +2.3% at US$104.9/barrel, Gold +0.15% at US$4,525/oz.
Fiscal support measures by euro zone governments that ease the pain of high energy prices should not contradict the European Central Bank's efforts to curb surging infltion8, the chairman of euro zone finance ministers Kyriakos Pierrakakis said. "We certainly all understand that we shouldn't contradict monetary policy.
* Dollar holds near six-week high on U.S.-Iran uncertainty. * Traders see 41% chance of a 25-bp U.S. rate hike in December. * Trump to swear in Warsh as Fed chair on Friday. * All metals on track for weekly losses. By Noel John.
World markets remain at the mercy of diplomacy as the Iran war approaches the end of its third month with no clear resolution in sight. A host of central banks meanwhile brace for their next moves and inflation data piles the pressure on U.S. and Japan policymakers.
World markets remain at the mercy of diplomacy as the Iran war approaches the end of its third month with no clear resolution in sight. A host of central banks meanwhile brace for their next moves and inflation data piles the pressure on U.S. and Japan policymakers.
* APEC ministers responsible for trade to discuss supply chain resilience, digital trade, AI readiness. * China's record trade surplus and G7 calls for action on imbalances add to tension. * APEC Business Advisory Council urges pause on new trade curbs. * Japan's trade minister attends, marking highest-level visit since last year's diplomatic rift. By Nicoco Chan and Casey Hall.
Europe's push to curb its dependence on U.S. payments giants Visa and Mastercard (MA) has driven a wedge between the European Central Bank and financial firms keen to shield revenues, hobbling efforts to build a home-grown system, several people involved said.
Britain's FTSE 100 index is seen opening higher on Friday, with futures up 0.42%. * BT: Indian conglomerate Bharti Enterprises is seeking to potentially increase its stake in BT to just under the threshold that would require it to make a full takeover offer for the British telecoms group, three people familiar with the matter said.
Japanese government bonds were mixed on Friday, with optimism about a near-term end to the Iran war pulling longer-dated yields lower, while speculation for earlier Bank of Japan tightening lifted shorter-dated yields. Yields globally have been rising with the price of oil as the war stoked worries about inflation.
* US, Iran at odds on key issues. * Trump to swear in Warsh as Fed chair. * Silver heads for weekly gain. * Platinum, palladium face weekly losses. By Pablo Sinha. Gold edged lower on Friday, pressured by a stronger U.S. dollar and as elevated oil prices have raised expectations for interest rate hikes by the U.S. Federal Reserve. Spot gold was down 0.3% at $4,527.60 per ounce, as of 0411 GMT.
Nomura has joined a growing chorus of brokerages expecting the U.S. Federal Reserve to hold interest rates steady in 2026, citing persistent inflation and skepticism that policymakers will rally behind rate cuts.
The dollar held near six-week highs on Friday as traders weighed the prospects of a near-term deal to end the Middle East war and assessed whether the Federal Reserve would raise interest rates if inflation continued to accelerate. Iran's foreign minister met with Pakistan's interior minister to discuss proposals to end the U.S.-Israeli conflict, Iranian media reported.
Gold edged lower on Friday, on track for its second consecutive weekly loss, as higher oil prices and rising concerns around inflation and hawkish interest rates weighed on the metal.
* April core CPI rises 1.4% yr/yr vs forecast +1.7% * Index excluding fresh food, fuel rises 1.9% yr/yr. * Inflation seen re-accelerating on war-induced energy shock. By Leika Kihara.
* April core CPI rises 1.4% yr/yr vs forecast +1.7% * Index excluding fresh food, fuel rises 1.9% yr/yr. * Inflation seen re-accelerating on war-induced energy shock. By Leika Kihara. Japan's core consumer prices rose 1.4% in April from a year earlier, data showed on Friday, marking the slowest annual pace in four years due largely to the effect of government subsidies on school tuition.
U.S. President Donald Trump will swear in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House, the Trump administration said on Thursday. Warsh was confirmed to the role in a near party-line vote on May 13. Warsh, 56, will serve a four-year term as chair and a 14-year term as a Fed governor.
U.S. President Donald Trump will swear in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House, the Trump administration said on Thursday. Warsh, 56, will serve a four-year term as chair and a 14 year term as a Fed governor.
Brazil's central bank said on Thursday it will offer up to $1 billion in two simultaneous dollar auctions with repurchase agreements on Friday. In a statement, the central bank said the auctions will start at 10:30 a.m. local time, and aim to roll over contracts maturing in June. The repurchases for the auctions are set for September 2 and November 4, according to the monetary authority.
Housing starts fell by 2.8% to a 1.465 million annual rate in April, with single-family housing starts lower but multi-family starts higher. Building permits rose by 5.8% to a 1.442 million rate in April, lifted by an increase in multi-family permits that more than offset a decline in single-family permits.
Weekly applications for unemployment insurance in the US decreased, while continuing claims moved higher, government data showed Thursday. For the week through May 16, the seasonally adjusted number of initial claims fell by 3,000 to 209,000, the Department of Labor said.
ITS Logistics, an Echo Global Logistics company, today released its May Supply Chain Report. ?U.S. inflation accelerated noticeably in April 2026, with the Consumer Price Index rising 3.8% year-over-year and 0.6% month-over-month ? the highest annual inflation rate since 2023,? said Stan Kolev, Chief Financial Officer at ITS Logistics.
US housing starts decreased less than estimated in April amid a jump in multi-family projects, while the single-unit component declined, government data showed Thursday. Starts fell 2.8% sequentially to a seasonally adjusted annual rate of 1.47 million units last month, according to the Census Bureau and the Department of Housing and Urban Development.
How businesses and consumers respond to ongoing economic shocks will determine if the U.S. Federal Reserve can "look through" current high inflation or needs to consider raising interest rates, Richmond Fed President Thomas Barkin said on Thursday.
How businesses and consumers respond to ongoing economic shocks will determine if the U.S. Federal Reserve can "look through" current high inflation or needs to consider raising interest rates, Richmond Fed President Thomas Barkin said on Thursday.
When Kevin Warsh takes command of the Federal Reserve, he will do so as some central bank officials and staff have become increasingly anxious about the state of the financial markets and the risk that presents to the economy.
The interest rate on the most popular U.S. home loan shot to its highest since August this week as yields on the government bonds most influential in setting residential borrowing costs have climbed on concern about the inflation being aggravated by the war with Iran.
* Minutes show Banxico board's diverging inflation outlooks. * Some governors see inflation risks from Middle East conflict as limited. * Dissenters urged caution, citing need to assess inflation shocks before further easing. By Brendan O'Boyle and Emily Green.
National Bank of Canada on Thursday maintained its outperform rating on the shares of Hemlo Mining (HMMCF) and its C$9.00 price target following the miner's first-quarter results. Hemlo reported first-quarter financial results in its first full quarter under new management.
Uncertainty around the impacts of war in the Middle East dominated the Bank of Mexico's May monetary policy decision, which ended in a split 3-2 vote to cut Mexico's benchmark interest rate, according to minutes from the meeting which were published Thursday morning.
Some U.S. Federal Reserve officials proposed extending a critical, international supply line of U.S. dollars to underpin financial stability, according to an account of their recent meeting. The discussion centred on extending so-called U.S. dollar swap lines, which the Fed has with five major central banks and has become a key backstop for global banking since the financial crisis.
* Iran hardens stance on nuclear issue in peace talks, sources say. * Euro zone bond yields rise as oil prices jump and inflation concerns mount. * PMI data and Nomura economists highlight stagflation risks from Iran war. By Amanda Cooper.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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