Macro Briefing: 6 March 2023

* Fed submits report to Congress: more rate hikes needed to tame inflation
* China sets lowest growth target (roughly 5%) in decades as challenges loom
* Base metals mostly lower after China sets modest growth target
* Veteran emerging markets investor says he can’t get his money out of China
* Housing headwinds strengthen ahead of crucial spring selling season
* US services sector growth remains moderate in February via survey data
* Former Fed Vice Chair Blinder predicts Fed won’t raise rates to 6%, but…
* San Francisco Fed President Daly sees tighter policy for longer as ‘likely’
* US Treasury yield curve remains deeply inverted as hawkish Fed policy prevails:

Tech industry layoffs haven’t spilled over into wider economy, which suggests that US recession risk is still low. “Layoffs are making the news, but it’s not widespread,” says Joanie Bily, president of RemX, a staffing firm. Job cuts to date are “very focused right now on the tech sector and companies that benefited the most during the pandemic.”

base metals