China factory activity expected to contract again
China’s official manufacturing purchasing managers’ index in September is expected to fall below the 50 point that separates growth from contraction, according to a Reuters poll of analysts.
Economists expect a 49.6 figure, slightly higher than August’s 49.4, marking the third straight month of contraction.
PMI measurements are continuous and represent month-to-month expansion or contraction.
A private survey of factory activity in China is also scheduled for Friday, with analysts surveyed by Reuters forecasting a 49.5 in print.
— Abigail Ng
Japanese industrial production rises more than expected
CNBC Pro: Is the Fed on the right track? Wall Street veteran Ed Yardeni says this is what to do next.
The US Federal Reserve announced another 75 basis point rate hike earlier this month, raising the federal funds rate to a range of 3% to 3.25%. The central bank also suggested that interest rates could be raised to 4.6% in 2023 to curb inflation.
Economist Ed Yardeni, who coined the term “bond vigilante,” offers his take as the Federal Reserve’s response to inflation comes under intense scrutiny.
Pro subscribers can read more here.
— Xavier Ong
Fed’s Loretta Mester says rates aren’t restrictive yet
Cleveland Federal Reserve Governor Loretta Mester said interest rates are not yet restrictive and more work needs to be done to keep inflation under control.
“Inflation is still at its highest level in 40 years,” Mester told CNBC’s Steve Leesman during an appearance on “Squawk Box.” “So the conversation right now is about what we have to do, what we have to do to restore price stability, because we can’t sustain a healthy economy and it’s going to take time. A good labor market cannot be maintained over time, to price stability.”
Mester said he was probably “a little above the median” among Fed officials when it came to rate hikes, citing persistent inflation.
“We’re not in the realm of capping interest rates yet. That’s right. We raised interest rates by 300 basis points this year, but look how high inflation is,” Mester said.
— Sara Min