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January 16th news, at 20:00 local time on January 15th, US President Biden delivered his farewell speech as president in the Oval Office of the White House.US President Biden: The system of checks and balances maintains American democracy.The Bank of Korea unexpectedly kept its interest rate unchanged at 3%, while market expectations were for a drop to 2.75%.On January 16, the worlds largest asset management company BlackRock (BLK.N) announced on Wednesday that its fourth-quarter profit jumped 21%, the stock market boom increased commission income, and its managed assets also hit a record high of $11.6 trillion. Its assets in the same period last year and the third quarter were $10.01 trillion and $11.48 trillion, respectively. BlackRocks long-term funds net inflows in the fourth quarter were $201 billion. The overall net inflow of funds reached $281.4 billion, higher than $95.6 billion in the same period last year.On January 16, CICCs research report stated that the month-on-month increase in the US core CPI in December slowed from 0.3% last month to 0.2%, and the year-on-year growth slowed from 3.3% to 3.2%, both lower than market expectations. The non-rental service inflation (supercore), which the Federal Reserve is most concerned about, has fallen, and core goods and rental inflation have remained mild, with no signs of re-acceleration. Despite strong non-farm payrolls last Friday, inflation continued to slow, indicating that the economy has not shown signs of overheating. This is good news. U.S. Treasury yields fell and U.S. stocks rebounded. Maintaining the previous judgment that the United States is expected to achieve a "Goldilocks" economy, the market may have overestimated the upside risks of U.S. inflation. The Federal Reserve is likely to skip the interest rate cut in January, and there is still a possibility of a rate cut in March. Maintain the view that there may still be two interest rate cuts in the first half of the year.

Biden Turns to Ethanol to Help Bring Down Gasoline Costs as Consumer Inflation Soars

Haiden Holmes

Apr 13, 2022 09:32

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Biden's poll scores have dipped as consumer prices have increased, and inflation is seen as a big disadvantage going into November's midterm elections.


The decision is a success for the US corn lobby, since it will almost certainly increase demand for maize-based ethanol, and a defeat for oil refiners, who consider ethanol as a threat.


From June 1 until September 15, the proposal will enable Americans to continue purchasing E15 gasoline, which contains 15% ethanol. While E15 is just 10 cents cheaper on average and has a lower "energy density," which means drivers would need to purchase more gasoline, top administration officials told reporters on a Monday call previewing the announcement that it should still help reduce costs.


Only a few thousand gasoline shops in the United States supply E15 at the pump, and they are required by law to switch off the pumps during the summer season. That, Biden assured the Iowa gathering, would change this summer, if only momentarily.


"You are not going to go up to your neighborhood gas station and find a sack over the lowest gas pump. You will be allowed to continue filling E15," Biden said.


He emphasized that there is still more work to be done to bring down gasoline costs.


"It will not resolve all of our issues," Biden said.


According to two individuals familiar with the conversations, the decision follows many weeks of internal White House debate that pitted environmental champions like Gina McCarthy against Agriculture Secretary Tom Vilsack, a former governor of Iowa.


The summertime ban on E15 was implemented due to fears that it adds to pollution in hot weather, despite the fact that research indicates that the 15% mix may not contribute to smog in comparison to the more prevalent 10% blends available year-round.


Russia's invasion of Ukraine and the subsequent sanctions and boycotts drove retail gasoline prices to record highs, creating a vulnerability for Biden's Democratic colleagues in November's legislative elections.


"Your family's budget, your ability to fill up your tank, none of this should be contingent on whether a tyrant declares war and commits atrocities halfway over the globe," Biden added.


Biden stated last month that the US will begin selling 180 million barrels of petroleum from the Strategic Petroleum Reserve at a pace of one million barrels per day in May, the largest release from the stockpile since it was established in the 1970s.

CORN VS. OIL

Biden announced the E15 extension during a visit to POET Bioprocessing in Iowa, the country's biggest biofuels producer.


"We commend Vice President Biden and his administration for recognizing that low-cost, low-carbon ethanol deserves a fair chance to bolster our energy security and bring record-high pump prices down," Renewable Fuels Association President Geoff Cooper said.


Oil sector representatives chastised the government for the move.


"Americans are seeking long-term answers to high gasoline costs, not short-term political fixes," said Ron Chittim, spokesperson for the American Petroleum Institute, the oil industry's primary lobbying group.


The Environmental Protection Agency (EPA) plans to issue a national emergency waiver to effect the move closer to June, administration officials said. According to the White House, the EPA is reportedly exploring further measures to enable year-round use of E15.


The American Fuel and Petrochemical Manufacturers (AFPM) business organization questioned whether the extension of E15 sales was legal, stating that the EPA waiver being utilized is for for unexpected circumstances such as hurricanes.


In 2019, the courts rejected a previous attempt by Biden's predecessor, Republican Donald Trump, to extend a waiver allowing year-round sales of E15.


Officials briefing reporters on Biden's announcement said that his government will have a different "approach" and "authority" than Trump's, but provided no specifics.


Additionally, they said that the EPA will work with states to guarantee that the prolonged sale of E15 would have no "substantial" detrimental effect on summer air quality.


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