Chinese Fed Insiders, Exploited Oil Reserves, Fed Pending Decision: The Five Things You Should Know About Wednesday

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Here are five key elements that can have an effect on Wednesday’s trade.

INSIDERS FROM CHINA FED: The Chinese government has targeted the Federal Reserve to undermine U. S. financial policy. The U. S. Senate has been in office since at least 2013, according to a report released Tuesday through Republicans on the Senate Homeland Security and Governmental Affairs Committee.

The report mainly points to the movements of several Federal Reserve workers known as the “P Network,” whose overseas behavior and educational backgrounds have raised domestic considerations.

One of those workers was arrested four times during a vacation in Shanghai in 2019 when Chinese officials “threatened the person’s family unless the person provided them with economic information and assistance. “

FED PREPARES ANOTHER BIG RATE HIKE, WITH RISK OF DEEPER ECONOMIC SLOWDOWN

Since 2013, the Chinese government has reportedly had Federal Reserve employees, according to a Senate committee report released Tuesday. (AP Photo/Patrick Semansky, file/AP Images)

Other Federal Reserve workers also had “close ties” to the People’s Bank of China, Chinese educational organizations and the state-run Xinhua news agency, according to the report.

A worker who had “continuous contact with Chinese citizens” attempted to “move giant volumes of Federal Reserve knowledge to an external site. “Another worker moved the “modeling code” to a Chinese university connected to China’s central bank.

The Federal Reserve’s failure to counter China’s “lasting and brazen” moves is a national security risk, according to the Senate report.

EXPLOITED OIL RESERVES: The White House announced Tuesday that the Energy Decomposition will consider selling another 20 million barrels of oil for the strategic oil reserve as part of the Biden administration’s efforts to lower fuel prices.

This is the fifth legal sale of its kind through President Biden. The White House continued to blame the “disruption by the invasion of Russia” for the higher costs, while claiming that the Biden administration’s moves are making a big difference.

While gas prices have particularly declined from a recent national average value of more than $5 per gallon in June, the average through Tuesday remains at $4327, up from $3156 a year ago, and about $2. 39 when Biden first took office in January 2021. Republicans criticized the White House after learning that millions of barrels of past sales of strategic oil reserves were being shipped to European and Asian countries, China added.

“Other Americans deserve answers as to why our emergency energy reserves are sent to foreign adversaries like the Chinese Communist Party, which undermines our energy security and national security,” Cathy McMorris Rodgers, a member of the House Energy and Commerce Classification Committee, told Fox News Digital in a statement.

IMMINENT FED DECISION: The Federal Reserve is expected to raise the federal budget rate by three-quarters of a percentage point to a difference of 2. 25% to 2. 5%. saw the first accumulation of 75 basis points since November 1994), following a half-point accumulation in May and a quarter-point accumulation in March. cuts in March 2020 in reaction to the global pandemic.

THE FED’S UNITED FRONT ON INTEREST RATES COULD BE A TEST SOON The Federal Reserve’s preferred measure of inflation, the year-over-year update on core non-government consumption spending, fell to 4. 7% in May. This is the third month of slowest, downward growth. from a 39-year high of 5. 3% in February, but still well above the Fed’s 2% inflation target. The June reading, released friday morning, is expected to remain stable at 4. 7%.

Jerome Powell, seen here speaking at the National Business Economics Association (NABE) Economic Policy Conference in Washington, D. C. (Valerie Plesch/Bloomberg Getty Images/Getty Images)

LARGE ARTICLE, JUNE AWAITING REPORTS ON HOME SALES: The Census Bureau is expected to release a report at 8:30 a. m. up to 0. 8% in May. Excluding the transport component, orders are expected to increase by 0. 2%, well below the 0. 7% accumulated in May. Orders for key capital goods, a closely watched gauge of business spending, are expected to rise 0. 2% in June, also lagging behind May’s peak of 0. 6%.

At 10 a. m. ET, the National Association of Realtors releases its June Outstanding Home Sales Index. Economists surveyed through Refinitiv expect a 1. 5% decline, the seventh decline in the past 8 months, as buyers struggle with high loan prices and record prices. would leave the index at its lowest point in more than two years (since April 2020). Remember that a sale is pending when a contract has been signed to purchase a space owned beyond and has not yet been concluded.

The National Association of Realtors will release its outstanding home sales index for June on Wednesday, July 27, 2022 at 10 a. m. /Fake Images)

REPORTS CONTINUE: Another earnings-busy day looms tomorrow. In the morning, we will hear from Boeing. The aerospace giant is the dow member that will report on Wednesday. Mobile US, pharmaceutical company bristol-Myers Squibb, packaged food processor Kraft Heinz, and paint maker Sherwin-Williams, to name a few.

Facebook’s parent platforms, Meta Platforms, will be at the top after the final bell. The company is expected to report that second-quarter earnings in percentage terms fell 28% year-over-year to $2. 59, with a partial reduction in earnings to $28. 94 billion.

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS Other names to watch out for Wednesday afternoon are automaker Ford Motor, wireless chipmaker Qualcomm, fitness insurer Molina Healthcare, poultry processor Pilgrim’s Pride and device rental giant United Rentals, among others.

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