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Watch Live: Powell Positions Himself As Populist Crusader In Senate Confirmation Hearing

Watch Live: Powell Positions Himself As Populist Crusader In Senate Confirmation Hearing

Jay Powell’s big day has finally arrived.

After being officially nominated for a second term at the Fed just before Thanksgiving, Fed Chairman Jerome.

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Watch Live: Powell Positions Himself As Populist Crusader In Senate Confirmation Hearing

Jay Powell's big day has finally arrived.

After being officially nominated for a second term at the Fed just before Thanksgiving, Fed Chairman Jerome Powell will appear before the Senate Banking Committee on Tuesday for his nomination hearing before the committee, then the entire Senate, vote on whether to officially confirm him to serve another 4 years at the central bank's helm, a decision that most see as preordained (since the Senate wouldn't dare defy markets, and risk tanking their own portfolios, by siding with Sen. Elizabeth Warren and voting against him).

In his prepared testimony, Powell once again tried to position himself as a populist by addressing the inflationary pressures that have arisen from the combination of Fed stimulus and the supernova of federal spending, and insisting that the Fed is running the economy for the benefit of all, rather than embracing policies that stoke asset inflation, further widening economic equality.

The Federal Reserve works for all Americans. We know our decisions matter to every person, family, business, and community across the country. I am committed to making those decisions with objectivity, integrity, and impartiality, based on the best available evidence, and in the long-standing tradition of monetary policy independence. That pledge lies at the heart of the Fed’s mission and is one we all make when we answer the call to public service. I make it here again, with force and without reservation.

Nowhere in his remarks does Powell touch upon his own responsibility for helping to create the inflationary supernova that's currently squeezing working and middle-class Americans - though he claims to be the man to fix it.

As for what we might hear from Powell on the subject of monetary policy, Ransquawk believes he might share an update on the Fed's thinking about the labor market following the disappointing headline number for December released on Friday. The chair will likely also be asked about the prospects for a March rate hike, which markets have already started to aggressively price in.

Powell also might  be asked about the latest ethics scandal at the Fed, which resulted in (former) Vice Chair Richard Clarida resigning two weeks shy of his retirement date after the press discovered in an amended ethics filing that Clarida had lied about buying stocks - via ETFs - just days before the Fed unveiled its stimulus measures in response to the March 2020 COVID-inspired market rout.

Readers can find Ransquawk's preview of Tuesday's hearing below:

The hearing will take place at 15:00GMT/10:00EST on Tuesday 11th January 2022. President Biden renominated Powell for the Fed Chair Position in November 2021. In the follow up remarks, Powell noted strong policy actions and vaccines have set the stage for a strong recovery, but he knows high inflation takes its toll on families and the economy. Powell also promised the return of maximum employment. In his prepared remarks for the hearing, he noted the economy is growing at its fastest pace in many years and the labour market is strong, highlighting the rapid strengthening of the economy despite the pandemic, resulting in elevated inflation.  Powell will likely get quizzed about hot inflation (note, US CPI is on Wednesday, after the hearing), but given the hawkish pivot in December (acceleration of asset purchases, discussion around the balance sheet, and hawkish dot plots), he will likely say the Fed is pivoting to address high inflation and will reiterate that maximum employment could be achieved relatively soon, providing job growth continues at the current pace.

Given the December meeting and press conference were so recent, and the Fed has only really had the latest jobs report to digest since then, we may see updated commentary on the labour market, although other remarks are likely to be a reiteration. However, given the recent increased attention around a March lift-off, remarks on this will be key, as will any further details on the balance sheet. In the Minutes, on lift off, some suggested there could be circumstances in which it would be appropriate for the Committee to raise rates before maximum employment had been fully achieved, several participants viewed labour market conditions as already largely consistent with maximum employment while most judged it could be met relatively soon if the recent pace of the labour market continues. The latest jobs report saw an even further hawkish shift in market pricing for the March meeting given a strong improvement in the unemployment rate and decent improvement in slack measures, while the miss on the headline NFP perhaps shows that there are less jobs to add in the COVID labour market, suggesting full employment is either here, or at least near, for the short-to-medium term. Nonetheless, Powell’s views on this will be in focus. For reference, the Fed currently forecasts three hikes in 2022; however, the likes of Goldman Sachs call for four and JP Morgan’s CEO Dimon said more than four hikes in 2022 were a possibility. On the matter, Bostic (2024 voter, hawk) sees three 2022 hikes with the risk of a fourth on the possibility of higher inflation.

The Fed officially dropped the term “transitory” from its December meeting, therefore this may be a topic of question at the hearing. However, Powell did note he still expects price pressures to ease in the second half of this year, along with supply chain issues, although there was still great uncertainty. The FOMC’s SEPs in December saw the median view of PCE easing from current levels to 2.6% in 2022 with the core at 2.7%, albeit both estimates are above the Fed’s prior estimate back in September. Looking ahead, both the headline and core PCE metrics are expected to slow further to 2.3% in 2023 and 2.1% in 2024, so the Fed still thinks the recent elevated inflation prints are temporary. On wages, Powell will likely reiterate there is no evidence of wage growth spiralling into inflation, but given the political nature of the hearing, and given inflation is one of congress’ largest concerns, he will have to convince the Senate Banking committee he will be acting to bring inflation down.

Fed-Vice Chair nominee Brainard will have her hearing at the Senate Banking Committee on Thursday January 13th at 15:00GMT/10:00EST, she tends to lean more dovish, but she hasn’t spoken much recently, therefore her comments will likely reiterate Powell today, but it will be interesting to see her views on the balance sheet and lift-off timings.

And here's Powell's full prepared testimony:

Tyler Durden Tue, 01/11/2022 - 09:55

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Spread & Containment

A dog has caught monkeypox from one of its owners, highlighting risk of the virus infecting pets and wild animals

The monkeypox virus can easily spread between humans and animals. A veterinary virologist explains how the virus could go from people to wild animals in…

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A dog in Paris has become the first case of a pet contracting monkeypox from its owners. Cavan Images via Getty Images

A dog in Paris has caught monkeypox from one of its owners, both of whom were infected with the virus, according to a scientific paper published on Aug. 10, 2022. This is the first case of a dog contracting the monkeypox virus through direct contact with skin lesions on a human.

I am a veterinary pathologist and virologist who has been working with poxviruses for over 20 years. I study how these viruses evade the immune system and am working on modifying poxviruses to prevent infection as well as treat other diseases, including cancer.

With monkeypox spreading in humans throughout the world, my colleagues and I have begun to worry about the increased risk of monkeypox spreading from humans to animals. If monkeypox spreads to wildlife species in the U.S. and Europe, the virus could become endemic in these places – where it has historically been absent – resulting in more frequent outbreaks. The report of the infected dog shows that there is a decent chance these fears could become a reality.

A microscope image of a bunch blue circles in a brown-colored cell.
The monkeypox virus – the blue circles in this image of an infected cell – is a poxvirus similar to smallpox and cowpox and can easily infect many different species. NIAID/Wikimedia Commons, CC BY

A species-jumping virus

Monkeypox is a poxvirus in the same family as variola – the virus that causes smallpox – and cowpox viruses and likely evolved in animals before jumping to humans. Monkeypox causes painful lesions in both humans and animals and, in rare cases, can be deadly. Researchers have found the monkeypox virus in several species of wild rodents, squirrels and primates in Africa, where the virus is endemic. Monkeypox does not need to mutate or evolve at all to be able to infect many different species. It can easily spread from animals to people and back again.

Though there is a fair bit of research on monkeypox, a lot more work has been done on cowpox, a similar zoonotic poxvirus that is endemic in Europe. Over the years, there have been several reports of cowpox infection spreading from animals to humans in Europe.

From people to animals

Until recently, most monkeypox infections occurred in specific areas of Africa where some wildlife species act as reservoirs for the virus. These outbreaks are usually contained quickly through isolation of infected individuals and vaccinating people around the infected individual. The current situation is very different though.

With nearly 40,000 cases globally as of Aug. 17, 2022 – and more than 12,500 cases in the U.S. alone – monkeypox is now widespread within the human population. The risk of any one person transmitting the virus to an animal – particularly a wild one – is small, but the more people are infected, the greater the chances. It’s a numbers game.

There are a number of ways viruses can transfer from animals to people – called spillover – and from people back to animals – called spillback. Since monkeypox is most easily spread through direct skin-to-skin contact, it is a bit more difficult to transmit between species than COVID-19, but certainly possible.

The case of the dog in Paris provides a clear example of how cuddling or being close to a pet can spread the virus. Previous studies on poxviruses like monkeypox have shown that they can stay active in fecal matter. This means that there is a risk of wild animals, likely rodents, catching it from human waste.

A grey rat.
There are a number of species that host monkeypox in Africa – like this gambian rat. Monkeypox can spread from humans to many other animals, including dogs and likely cats and other species of rodents. Louisvarley/Wikimedia Commons, CC BY-SA

The monkeypox virus is also present in saliva. While more research needs to be done, it is potentially possible that an infected person could discard food that would then be eaten by a rodent.

The chances of any one of these events happening is extremely low. But I and other virologists worry that with more people becoming infected, there is a greater risk that rodents or other animals will come into contact with urine, feces or saliva that is contaminated with the virus.

Finally, there is the risk of people giving monkeypox to a pet, which then passes it on to other animals. One case study in Germany described an outbreak of cowpox that was caused when someone took an infected cat to a veterinary clinic and four other cats were subsequently infected. It is feasible that an infected household pet could spread the virus to wild animals somehow.

How to help

One of the key reasons that the World Health Organization was able to eradicate smallpox is that it only infects people, so there were no animal reservoirs that could re-introduce the virus to human populations.

Monkeypox is zoonotic and already has several animal reservoirs, though these are currently limited to Africa. But if monkeypox escapes into wild animal populations in the U.S., Europe or other locations, there will be always be potential for animals to spread it back to humans. With this in mind, there are a number of things people can do to reduce the risks with regard to animals.

As with any infectious disease, be informed about the signs and symptoms of monkeypox and how it is transmitted. If you suspect you have the virus, contact a doctor and isolate from other people.

As a veterinarian, I strongly encourage anyone with monkeypox to protect your pets. The case in Paris shows that dogs can get infected from contact with their owners, and it is likely that many other species, including cats, are susceptible, too. If you have monkeypox, try to have other people take care of your animals for as long as lesions are present. And if you think your pet has a monkeypox infection, be sure to contact a veterinarian so they can test the lesion and provide care when needed.

Even though monkeypox has been declared a public health emergency, it is unlikely to directly affect most people. Taking precautionary steps can protect you and your pets and will hopefully prevent monkeypox from getting into wildlife in the U.S., too.

Amy Macneill does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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International

A-levels: A grades are up compared to pre-pandemic results

The pandemic has has a serious impact on school pupils – but a record number have applied to university.

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Fewer students are getting their first choice of university than in 2021. Monkey Business Images/Shutterstock

The 2022 A-level results are in, and the number of students receiving A or A* grades has fallen – down by 8.4% on 2021.

For the first time since 2019, A-level results are being decided by formal exams. Students were warned that grades were likely to be lower than in 2020 and 2021, when cancelled exams and teacher assessments in A-levels led to record high results. Nevertheless, the proportion of students receiving A grades is up from pre-pandemic levels in 2019.

A busy end to the admissions round is under way for universities and students, and the next steps for students still living with the impact of the pandemic are becoming clearer.

In 2021, some universities were over subscribed and had to offer significant incentives for students to defer their places. While the number of students in 2022 accepted on a UK university course – 425,830 – is higher than in 2019 and the second highest on record, it is 2% lower than in 2021. Just a few days before the results were out, thousands of students did not yet hold an offer of an university place.

Over the past two years, students studying qualifications, whether BTEC, T-level or A-level, have had to cope with the consequences of the pandemic for a significant proportion of their course. This has included school closures and remote lessons, social isolation, illness and increased levels of mental stress.

Highest number of applications

Nevertheless, 2022 has seen the highest ever numbers of applications to higher education, with 44% of 18 year olds applying. This number includes record numbers of students from areas of the country with historically low participation in higher education. It demonstrates that many young people believe higher education can make a difference to their future opportunities.

For the lucky ones who get the grades to gain a place at their first choice of university, planning for their degree course starts right away. A record number of Scottish students have already been accepted to their first choice of university.

The best advice for those students who don’t receive confirmation that they have been accepted by their first choice university is to ring the university, who will have staff on hand to explore their options.

For students who haven’t got a university place, it is still possible to explore options though clearing – which allows students without offers to find places on university courses that haven’t been fully subscribed. Students in this position should try to keep calm, write down their options and avoid quick decisions.

For those young people who do go to university, there will be challenges. With the cost of living for all rising rapidly, people on a lower income – as many students are – will feel the pinch of higher bills for food or rent.

Support from universities

The pandemic saw a serious and concerning rise in mental health issues affecting young people. Universities need to be ready to give holistic support to students as they transition into university and settle into undergraduate life. This means support for academic transition needs to be delivered in the context of good available support for mental health and wellbeing.

However, Universities UK, an advocacy groups for universities, has recently pointed out the wide range of benefits for those who study for a degree, including the £9,500 more per year on average graduates in England earn compared with non-graduates. It also draws attention to the value of degrees to improve the life chances of young people, to build skills and to contribute to society.

For many young people, getting a degree gives them access to a vocation such as teaching or working as a health professional. For others it is a path to travel and adventure. For many, the university journey is a place where young people find their tribe and begin to understand their identity.

For the class of 22, making it to university might mean life-changing opportunities. Given the challenges and restrictions of the last few years, this has never been more important.

Helena Gillespie receives funding from the European Union.

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Government

Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion

According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical…

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According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical company Global Blood Therapeutics (NASDAQ: GBT) for $5 billion.

Pfizer, too, acquired Global Blood Therapeutics 

Pfizer wants to close a deal soon, but there are still other interested parties, according to the article.

Global Blood Therapeutics, which manufactures Oxbryta, the blood disorder medication, saw its shares jump 44%  on Friday afternoon to a two-year high. As of Thursday’s closing, the company’s market cap was $3.12 billion.

A spokesman for Global Blood stated the company does not “comment on market rumors or speculation,” while Pfizer declined to respond on the matter.

With plenty of cash left over after selling its COVID-19 vaccine, New York-based Pfizer is searching for deals that may generate billions of dollars annual sales by 2030.

Its $11.6 billion acquisition of migraine medication manufacturer Biohaven Pharmaceutical Holding (NASDAQ: BHVN) in May was the most recent in a series of purchases that also included Trillium Therapeutics and Arena Pharmaceuticals in recent years.

Oxbryta received approval last year for sickle cell disease management 

In 2019, the US government approved Global Blood’s Oxbryta to manage sickle cell disease in individuals aged 12 and over. The oral medication was approved in December 2021 to treat the illness in younger children. The drug’s sales increased by almost 50% to $194.7 million in 2021.

After a gloomy start to the calendar year, when a lack of significant purchases and clinical-stage treatment failures lowered investor morale and restricted funding, the biotech dealmaking pace has recently picked up again.

Also, Amgen Inc (NASDAQ: AMGN) also decided to purchase ChemoCentryx Inc on Thursday for $3.7 billion to obtain access to a possible breakthrough medication for inflammatory illnesses. AstraZeneca’s $39 billion acquisition of Alexion Pharmaceuticals in 2020 has put the realm of immune diseases in the limelight. The deal, which was announced before trading opened, will also give the corporation control of at least two investigational immune disorders medicines.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

The post Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion appeared first on Wall Street PR.

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