finance
Fed Officials See Rate Hike as Likely as Cut; Australians Back Gas Export Tax
Federal Reserve Chair Jerome Powell noted an increase in officials viewing a rate hike as equally likely as a cut this year. Separately, a majority of Australians favor taxing gas export profits and extending the fuel excise cut amid rising energy costs. The poll reflects a shift toward renewable energy preferences over fossil fuels.
DE
UN
LI
IN
The GuardianAudio version
Tap play to generate a narrated version.
Wall Street traders now see a slightly higher chance of a Federal Reserve rate hike than a cut this year. Interest-rate futures indicate an 11% chance of a hike, up from 5%. This shift follows signals from policymakers. He described a vigorous debate on rate guidance during recent meetings. Powell added that the number of officials supporting a change to neutral bias has also risen.
Powell explained that the majority of the committee did not want to change the language on rates. He noted that the question on rate guidance was closer than in March. Powell said it was easy to see why some supported the shift. Interest-rate futures reflect these developments, with traders adjusting expectations. The probability of a hike now stands at 11%, surpassing the chance of a cut.
“Number Of Officials Seeing Hike As Likely As A Cut Has Moved Up”
A majority of Australians support taxing profits from gas exports. They also back extending the cut to the fuel excise. This comes despite the prime minister ruling out a new tax on existing gas export contracts. The poll shows more voters prefer shifting to renewable energy over sticking with fossil fuels.
Respondents reported cutting back on travel, switching to public transport, and reducing use of air conditioning and heating. These changes occur amid global fuel uncertainty.
The poll indicates Australians are adapting behaviors due to higher energy prices. Support for higher taxes on gas exports aims to address these costs. The preference for renewables highlights a broader trend away from fossil fuels. The poll was conducted amid ongoing fuel price pressures.
