Bank of England intervention won’t be enough

tweet at 11:26am: G7 FOREIGN MINISTERS IN JOINT STATEMENT: WE WILL NEVER RECOGNIZE THESE ALLEGED ANNEXATIONS BY RUSSIA, NOR THE BOGUS "REFERENDUMS" CONDUCTED AT GUNPOINT tweet at 11:27am: G7 FOREIGN MINISTERS IN JOINT STATEMENT: WE WILL IMPOSE FURTHER ECONOMIC COSTS ON RUSSIA G7 FOREIGN MINISTERS IN JOINT STATEMENT: NUCLEAR RHETORIC WILL NOT PREVENT OR DETER US FROM SUPPORTING UKRAINE FOR AS LONG AS NECESSARY https://t.co/GfgQrt9kQ5

tweet at 11:20am: ECB'S VISCO: A SIGNIFICANT DETERIORATION IN THE ECONOMIC OUTLOOK IS CAUSE FOR CONCERN. tweet at 11:20am: ECB'S VISCO: IT IS IMPOSSIBLE TO FULLY COMPENSATE FOR THE EFFECTS OF THE ENERGY SHOCK ON PROFITS AND WAGES. tweet at 11:22am: ECB's Visco: -Rates must keep rising while long-term expectations remain anchored -Approach to monetary policy will be data dependent, meeting by meeting. -Worsening of economic outlook is a concern -Impossible to fully offset the impact of the energy shocks #ECB $EUR tweet at 11:23am: ECB'S VISCO: FOLLOWING THE FED BLINDLY COULD BE A MISTAKE. tweet at 11:23am: ECB'S VISCO: EXCESSIVELY RAPID, LARGE RATE HIKES RISK TRIGGERING A RECESSION.

tweet at 11:17am: ECB'S SCHNABEL: FURTHER INCREASES IN OUR KEY POLICY RATES WILL BE NEEDED tweet at 11:18am: *ECB's Schnabel: Slower Growth May Not Materially Ease Price Pressure tweet at 11:18am: ECB's Schnabel: -Risks of a wage-price spiral could be limited if inflationary expectations remain stable. -Because there is uncertainty about the persistence of inflation, a firm control is required #ECB $EURSpeech by Isabel Schnabel at a panel on the “Fight against inflation” The euro area is facing a cost-of-living crisis. An increasing proportion of people’s income is being spent on essential purchases, such as food and energy. At the same time, price pressures are broadening and nominal wages are not keeping pace with rising prices. The result is a marked loss in people’s purchasing power and a decline in the labour share of income, which is the share of total income paid to workers as wages, salaries and other benefits. Today I want to make four conceptual points about these developments. First, I will argue that the secular decline in the bargaining power of workers can help explain the decline in the labour share of income, which can be expected to weigh on private consumption and thus dampen aggregate demand. Second, I will ask what factors determine the future evolution of real wages and hence how the costs of this crisis are distributed between workers and firms in the future. I will argue that the risks of a wage-price spiral are contained, provided inflation expectations remain anchored. Third, I will discuss why a decline in real wages and a slowdown in aggregate demand may not materially ease current inflationary pressures. One reason is that today’s energy crisis will suppress both supply and demand. A second reason is that firms will try to protect their profit margins from higher energy costs. My final point relates to the implications for monetary

tweet at 12:03pm: NATO'S STOLTENBERG: THIS IS MOST SERIOUS ESCALATION SINCE START OF WAR - Reuters via https://t.co/ymHY6x3NYD tweet at 12:02pm: NATO'S STOLTENBERG: LAND GRAB IS ILLEGAL NATO'S STOLTENBERG: NATO ALLIES DO NOT RECOGNISE ANY OF THIS TERRITORY PART OF RUSSIA NATO'S STOLTENBERG: THESE LANDS ARE UKRAINIANS NATO'S STOLTENBERG: SECOND TIME RUSSIA HAS TAKEN UKRAINIAN LAND BY FORCE tweet at 12:04pm: NATO'S STOLTENBERG: PUTIN HAS UTTERLY FAILED ITS STRATEGIC OBJECTIVES NATO'S STOLTENBERG: PUTIN'S MOVE IS ADMISSION WAR NOT GOING AS PLANNED

tweet at 12:17pm: FED'S BARKIN: SAYS INFLATION PROGRESS WON'T BE PREDICTABLE, FED TO "PERSIST" WITH TIGHER POLICY AND NOT "DECLARE VICTORY PREMATURELY" tweet at 12:21pm: *FED'S BARKIN CITES SUPPLY IMPROVEMENTS AND EASIER HIRING: THE VIEW AMONG EXECUTIVES IS THAT PRICING POWER IS ONLY TEMPORARY AS EVIDENCE THAT INFLATION PROGRESS IS ON THE WAY. tweet at 12:32pm: FED'S BARKIN: COMFORTABLE WITH PACE OF RATE HIKES, A "GOOD NEWS" STORY IF FED DOES A BIT TOO MUCH AND INFLATION COMES DOWNBarkin: What’s Driving Inflation? Thanks for having me. Today, I want to talk about the economy, but I also want to take a step back and reflect on how we got here and where we might be headed. These views are mine alone and not necessarily those of anyone else in the Federal Reserve System. The U.S. Economy Today: I think you all know where the economy is today. We’ve seen a historically strong recovery from the short but deep 2020 recession. GDP surpassed its pre-pandemic level in the first quarter of 2021. Employment did so in August of this year, and the unemployment rate has basically come back to its low pre-COVID levels. While there is a lot of talk about a recession, the strength of the labor market suggests that is still premature. But, despite the good news that the worst of the virus seems behind us, we have not yet returned to normal. Supply chains remain strained as firms struggle to meet ever-shifting levels of demand with unstable production capacity. Employers are short workers, partly due to lower immigration and excess retirements. The war in Ukraine and widespread drought conditions are affecting commodity supply. And, of course, for the first time in a generation, we are grappling with high, broad-based and persistent inflation. The Consumer Price Index is at 8.3 percent. The Fed’s preferred metric, the Personal Consumption Expenditures Price Index, is 6.2 percent headline and 4.9 percent core. Both are near 40-year highs. How We Got Here The resurgence of inflation is particularly noteworth