Economic & Market Watch

In the News

Economy

• S&P Global’s index of service companies recovered to a reading of 51.3 in April from a three-year low of 49.8 in the prior month. The index employs a benchmark of 50, below which indicates contraction. Meanwhile, the inflation component of the index intensified to its highest levels in several years, driven in part by rising energy costs.
• Republican Senator Tom Tillis from North Carolina will allow a Senate vote on Kevin Warsh’s nomination for Federal Reserve chair. The decision follows a Justice Department announcement Friday that it is dropping its criminal investigation into current Fed Chair Jerome Powell.

Markets

• West Texas Intermediate crude oil futures traded over $96/barrel, extending recent gains as stalled Iran talks and continued disruptions near the Strait of Hormuz heightened concerns about global oil supply.
• U.S. equity markets paused after a strong rally, as investors weigh geopolitical risks, corporate earnings and the Fed’s upcoming policy decision.

Current Events

• Iranian-linked forces boarded commercial vessels near the Strait of Hormuz, according to regional reports, escalating tensions in a key global shipping corridor critical to worldwide energy markets.
• U.S. airlines are seeking federal financial support due to rising fuel costs, highlighting the broader economic impact of higher energy prices on the transportation and infrastructure sectors.

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Meet the Team

CFC's economic research team—John Suter, Sam Kem and Antony Davies—share their expert, yet easily digestible, perspective on what you need to know.

Have feedback about the podcast? A topic you'd like the EMW team to cover? Get in touch at economicresearch@nrucfc.coop.

Source: U.S. Energy Information Administration, Trading Economics