FirstFT: Most Fed officials back slower rate rises ‘soon’

A “substantial majority” of US Federal Reserve officials back slowing down the pace of interest rate rises soon, while some warned of greater than expected monetary policy tightening next year, according to an account of their most recent meeting.

The Fed was “primed, ready, anxious, to slow the pace of hiking because they still believe they can slow inflation without creating a recession and increasing unemployment”, said Steven Blitz, chief US economist at TS Lombard, who nonetheless expected a 0.75 percentage point rise in December. The Fed “will rue the day if they don’t”, he added.

US markets are closed for Thanksgiving today, with Wall Street’s benchmark S&P 500 and the tech-heavy Nasdaq Composite having ended the previous session 0.6 per cent and 1 per cent higher, respectively. Asian equities rose but European stocks were steady this morning.

Some of the world’s largest asset managers remain unconvinced that the recent US recovery will last, but for a longer-term view, try our latest “Economists Exchange”, where Brad DeLong from the University of California at Berkeley argues the country is now an “anti-globalisation outlier” and no longer seen as a place where the future is forged.

Five more stories in the news

1. Twitter disbands Brussels office Twitter has disbanded its entire Brussels office, sparking concerns among EU officials about whether the social media platform will abide by the bloc’s stringent new rules on policing online content.

2. Disney awarded Iger $10mn consultancy deal to advise CEO Bob Iger received a $10mn deal to advise his successor Bob Chapek even though the two executives were barely on speaking terms. Iger returned to Disney this week as chief executive after his chosen heir Chapek was ousted in an internal revolt.

3. EU gas price plan ‘not sufficient’, says French minister France’s energy minister Agnès Pannier-Runacher said the European energy market needed “structural” reform if EU industry was to survive the current crisis, arguing that Brussels’ attempt to cap gas prices was “not sufficient”. German business confidence has rebounded after fears receded about the risk of winter energy shortages.

4. Foxconn moves to quell protests at iPhone factory Apple’s manufacturing partner Foxconn has offered payouts of Rmb10,000 ($1,400) to newly recruited staff who elect to leave the iPhone factory and vowed to honour pay agreements, in an attempt to quell unrest after workers clashed with police.

5. Swaths of Ukraine left without power Russia fired dozens of missiles yesterday, leaving vast expanses of the country and more than half of neighbouring Moldova without power, in Moscow’s latest attempt to cripple civilian infrastructure.

Join top Financial Times journalists in talks with leaders in business and government including Jens Stoltenberg, Nato secretary-general, Roland Busch, chief executive of Siemens, and more at The Global Boardroom on December 7-9. Register here free for your digital pass.

The day ahead

Thanksgiving US stock and bond markets are closed for the national holiday, which is normally plagued with travel chaos and road gridlocks. This year more than 54mn people are estimated to travel 50 miles or more to visit loved ones, according to the AAA. (CNN)

Central banks Sweden’s Riksbank today raised interest rates to their highest level since the global financial crisis. South Africa also holds its monthly rate-setting meeting, while in Turkey, policymakers are expected to continue their rate-cutting streak. The European Central Bank publishes an account of its latest monetary policy meeting.

Corporate earnings Ingka Group, which owns most Ikea stores worldwide, reports full-year figures including profits for the home furnishing retailer. Other companies reporting include Dr Martens, Jet2 and Rémy Cointreau, while Kingfisher delivers a third-quarter trading update.

World Cup Brazil kick off against Serbia. Neymar, 30, may have his last shot at winning Brazil’s sixth World Cup and has already posted an Instagram picture of the country’s crest bearing the sixth star. Switzerland faces Cameroon, while Uruguay goes head to head with South Korea. In other football news, David Beckham could get involved in the sale of Manchester United.

What else we’re reading

In the court of ‘King’ Trump Jemima Kelly visits Mar-a-Lago and mingles with the “Trumpettes” and superfans of the former US president at his home base, part-social club, part-political nerve centre for a man whose obsession with winning threatens to split the Republican base.

Cost of Chinese chips Our new Big Read examines the cost of America’s ban on Chinese semiconductors. The new US tech rules will hurt China’s chipmakers but also add to inflationary pressures on many products.

How magical thinking enabled the rise — and fall — of FTX Since the cryptocurrency exchange imploded this month, it has become clear that the concentration of power, coupled with a lack of oversight, caused huge customer losses because funds were funnelled around with no accountability. Gillian Tett reflects on the sector’s deep contradictions. If you missed the FTX bankruptcy hearing, we have you covered.

The contest over the Catholic Church’s future The question of who will replace Pope Francis, who turns 86 next month, looms large. The pontiff is no darling of progressive Catholics, for whom his approach to issues such as homosexuality is too cautious. Still, he is regarded as more reformist. Tony Barber asks, what does the future hold for the Church?

How to disagree with your boss Last week, Elon Musk reportedly fired about a dozen engineers after they openly opposed him. It’s an extreme example of what can happen when you disagree with your boss. You’ll almost certainly disagree with your manager at some point in your career. This week’s Working It newsletter discusses how you should let them know.

Travel

Guyana is tipped as the next hotspot for travellers in search of adventure. But deep in the jungle, just upriver from a thundering waterfall in a sinking boat, Jamie Lafferty got more than he bargained for.