Fed Chair Powell (Q&A) notes inflation has been above target for five years, says you worry such a shock could cause trouble for inflation expectations

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Fed Chair Powell (Q&A) notes inflation has been above target for five years, says you worry such a shock could cause trouble for inflation expectations

Unilever (ULVR LN) and Kraft Heinz (KHC) held talks over food merger uniting ketchup and mayo, FT reports; discussions in recent months have now ended and were over a merger of Unilever’s food business and Kraft Heinz’s condiments division

Fed Chair Powell (Q&A) says the long-term thinking is to look through energy shocks, but that also depends on inflation expectations

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  • Fed strongly committed to keeping inflation expectations anchored around 2%

Context

Fed Chair Powell's comments reinforce the central bank's commitment to controlling inflation, highlighting concerns about sustained high inflation expectations. This suggests that the Fed may remain vigilant in its monetary policy decisions, potentially influencing rate expectations and market sentiment towards the USD and fixed income assets. Traders should consider how this perspective might affect cross-asset movements, particularly with forex currencies sensitive to US monetary policy shifts.

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