Who’s been waiting for a rate hike? Here it is

Who’s been waiting for a rate hike? Here it is

News of the day, Wednesday, 16 March

The outbreak of Covid-19 in China is supposed to hit at least 50% of first-quarter gross domestic product, Citi analysts predict. Since the week started, China has witnessed the worst covid flare-up since the very start of the pandemic in early 2020. Because of that, many manufacturing hubs limit or even suspend production. 

As China tightens Covid restrictions, Tesla’s factory in Shanghai has suspended production for two days, as it has been uncovered from the internal notice the company sent to its suppliers. Tesla’s Shanghai Gigafactory 3 makes cars for the Chinese market and supplies Germany and Japan, producing an average of 2018 vehicles per day.

The Federal Reserve is about to end its two-day interest rate meeting today with a decision on the first rate hike since 2018. The Fed is expected to raise interest rate only by a quarter point today, after the massive monetary policy ease at the start of the pandemic. Now, the issue of surging inflation appears much more urgent, as the war on Ukraine and raising oil prices loomed against the US economy, supporting further inflation increase.

The price of Brent crude is $102.20, WTI — $98.00, GBP/USD — 1.3060, EUR/USD — 1.0995, and gold costs $1920.00 per ounce.