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Federal Reserve Chair Jerome Powell said "the time has come" for the central bank to adjust its monetary policy, signaling that rate cuts could soon lower borrowing costs for American consumers and businesses.
Powell, who spoke at an annual conference of central bankers in Jackson Hole, Wyoming, didn't disclose specifics about when a rate cut could arrive, or its size, although economists have penciled in a reduction at the Fed's September 18 meeting. The federal funds rate now stands in a range of 5.25% to 5.5%, its highest level in 23 years.
In conveying that the Fed is likely to start cutting its benchmark rate, Powell cited some weakening in the labor market, as well as progress in battling high inflation. A slowdown in hiring and an uptick in the unemployment rate last month heightened concerns the Fed could mistake in the other direction, keeping rates too high for too long, throttling growth and plunging the economy into recession.
(Fastmarkets RISI) - Worldwide chemical market pulp producer inventories soared by four days-of-supply to close July at 47 days-of-supply, the Pulp and Paper Products Council (PPPC) reported Wednesday. Global shipments totaled 4.337 million tonnes in July, tumbling 7.6% vs the prior month’s 4.693 million tonnes and declining 4% vs year-ago results of 4.517 million tonnes.
(PPI Pulp & Paper Week) - North American prices for all graphic paper grades were unchanged again in August as demand seasonally picked up and capacity shrank due to US mill closures and conversions, industry contacts reported to Fastmarkets’ PPI Pulp & Paper Week.
This month, industry contacts showed concerns about the rail strikes in Canada and potential US East Coast port strikes. Companies are preparing ahead for those disruptions.
(PPI Pulp & Paper Week) - Sonoco Products in the second quarter reported that its consumer business profits are improving through productivity and commercial execution despite “uneven volume.” The company said demand is better but that promotions at retail have not moved packaging levels back to historic trends across all sectors.
CFO Rodger Fuller used cocoa pricing at the grocery stores as an example.
East, down $10/tonne.
(PPI Pulp & Paper Week) - Canada’s two major railroads, Canadian National (CN) and Canadian Pacific Kansas City Ltd (CPKC), prepared to restart their operations less than 24 hours after shutting down and locking out 9,000 members of the Teamsters union who operate the trains. The strike and lockout, which pulp and paper industry executives had anticipated for months, briefly halted all Canadian market pulp shipments by rail and closed the Port of Vancouver in British Columbia, according to industry contacts.
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