In Today's Digital Newspaper Bottom line for Fed Chair Jerome Powell's appearance before the House Financial Services Committee on Wednesday: Higher rates ahead with a lag. Updated forecasts showed that 16 of the Fed's 18 policy committee members expect another interest-rate hike, and a majority expect two more this year. Powell said the Fed will decide "meeting by meeting," based on incoming data and implications for economic activity, inflation, and risks.
Ukrainian officials, including Foreign Ministry Ambassador Olha Trofimtseva, are expressing doubt about Russia remaining in the Black Sea Grain Initiative. Meanwhile, the future of the Russian natural gas transit agreement with Ukraine is uncertain. More in Russia/Ukraine section. Is the renewable diesel industry headed for a cliff? That's the headline of a WSJ article. More in Energy section.
California to allow whole pork meat not compliant with Prop 12 to be sold through year-end. Details in Livestock section. U.S. equities yesterday: The Dow fell 102.35 points, 0.30%, at 33,951.52. The Nasdaq lost 165.09 points, 1.21%, at 13,502.20. The S&P 500 was down 23.02 points, 0.52%, at 4,365.69.
• Additional Fed speakers: Governor Michelle Bowman and Cleveland's Loretta Mester on the postpandemic economy at 10 a.m. ET, and Richmond's Thomas Barkin on inflation at 4:30 p.m. ET. Though rates were left unchanged last week, the Fed aims to strike a balance between curbing inflation and preventing a significant economic slowdown. With inflation and economic activity not quite slowing as anticipated, Fed officials still predict two more rate increases this year. This tighter financial condition may raise borrowing costs, lower stock prices, and strengthen the dollar.
• The price of bitcoin surpassed $30,000 for the first time in two months following announcements that institutional players like BlackRock, Wisdom Tree and Invesco are seeking permission to offer exchange-traded funds tracking the price of bitcoin. The cryptocurrency market's value has recovered to $1.22 trillion from a recent low of $1.06 trillion after the SEC charged crypto exchanges Binance and Coinbase for the sale of unregistered securities.
• Officials managing the Panama Canal will impose stricter measures on large ships crossing the waterway, which has been hit by the worst drought in more than a century. As a result of the shallower waters, container ships will face lower limits on the weight they can carry. The new restrictions will take effect on Sunday.— Vladimir Saldo, a Russian official in occupied southern Ukraine, claimed that Ukraine struck a bridge linking the city of Kherson with the Crimean peninsula.