Beijing on the back foot

<p>Kia ora,</p><p>Welcome to Friday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news Beijing seems to be on the back foot in a range of policy positions, and investors are not impressed.</p><p>But first, <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20220691.pdf" target="_blank"><strong>US jobless claims</strong></a> for last week fell marginally, but were at about the expected level. The number of people claiming these benefits also fell to 1.475 mln, that is to 1.1% of their workforce, and another all-time low.</p><p>Another American regional factory survey came in reporting a good expansion, but in <a href="https://www.philadelphiafed.org/surveys-and-data/regional-economic-analysis/mbos-2022-04" target="_blank"><strong>this Philly Fed one</strong></a> there are signs the impetus could be fading. This survey’s indicators for current general activity, shipments, and new orders declined from last month’s readings even if they did remain positive. The employment index and both price indexes edged higher and remain elevated. But the future indicators for general activity and new orders fell sharply, even if overall, firms continued to expect growth over the next six months.</p><p>Meanwhile, Fed Chair Jay Powell made it clear when <a href="https://meetings.imf.org/en/2022/Spring/Schedule/2022/04/21/imf-seminar-debate-on-the-global-economy" target="_blank"><strong>speaking as part of an IMF panel</strong></a> that the central bank remains committed to taming inflation, currently at 40-year highs, while virtually sealing in a +50 bps interest rate hike in May. Several other Fed policymakers, including regional presidents Mary Daly of San Francisco, Charles Evans of Chicago and Raphael Bostic of Atlanta, had delivered the same message earlier in the week. Now the outlier is hawk St Louis Fed President James Bullard who has been sayi