The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0658 GMT - Federal Reserve Chairman Kevin Warsh's main focus is credibility, rather than trying to lean on the hawkish or the dovish side, Jefferies' Mohit Kumar says in a note. "That's the message we are likely to get today as well," the global economist says ahead of the Fed's interest-rate decision. If there are inflation risks, then the Fed needs to deliver, Kumar says. Jefferies banks on lower oil prices, forecasting prices to return to $60-$65 per barrel in two years' time. "Hence, it's not oil prices that should determine the medium term inflation outlook," Kumar says. (emese.bartha@wsj.com)
0619 GMT - A strong U.S. economy faces signs of a weakening labor market, as evidenced by recent payrolls and employment creation numbers, and this backdrop supports a wait-and-see approach by the Federal Reserve, KBRA's Joan Feldbaum-Vidra says ahead of the Fed's interest-rate decision. Additionally, normalized oil flows out of the Middle East tend to support medium-term compression of oil prices, although the risk of an escalation in conflict after the U.S. midterm elections are keeping oil prices elevated, the global head of sovereigns says. "Large-scale borrowing by AI companies and the U.S. Treasury are keeping yields high, helping do the Fed's job," she says.
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