Retail numbers strong with previous revised up; rates hikes on track
Retail numbers are strong, with previous revised up.
The economy of a nation is the engine that drives prosperity and creates wealth for that country and its citizens. A nation's utilization of its available resources and manpower has a great influence upon its overall economic prowess. Factors such as governmental structure, access to valuable commodities, size and sophistication of the labor force, and relations with trade partners are all key components of achieving economic stability. Governmental politics play a crucial role in the resolution of many issues facing a nation. The potential impact upon international markets of U.S. President-elect Trump's economic policies, tensions between Russia and NATO, and…
Retail numbers are strong, with previous revised up.
The US 10-year yield has paused, but underlying momentum has not dissipated.
This is the problem that policymakers currently face. Battle inflation or protect the unemployment rate. Usually, a policy is implemented without this catch 22. This difficulty is the exact problem of stagflation, which is an economic paradox. Unfortunately, policymakers are caught between a rock and a hard place and have tough choices.
What Is An Inverted Yield Curve? An inverted yield curve is a situation in which yields on shorter-term U.S. Treasury securities are higher than on longer-term bonds, a reverse of the traditional state of affairs, where yields are higher the longer the bond's maturity. Many economists and analysts view an inverted yield curve as a signal that the U.S. economy may be poised to go into recession, because lower yields…
The Fed delivered a 50bps hike as expected, and the BoE statement makes a stagflation inference. RBA also raises rates in this uncertain economic environment. All eyes now turn to this week's CPI print in anticipation of moderation.
The Fed and BoE have hiked rates, and pressure is on the ECB to raise, but growth concerns may limit policy.
The central bank delivered its fourth interest rate increase in a row, in order to combat surging inflation and sees more hikes ahead
The US Federal Reserve hiked interest rates by 50 basis points as expected on Wednesday, which was the biggest increase since 2000 and the dot-com bubble
The core PCE reading of 5.2%, the higher than anticipated employment cost index, and tight labour conditions will trump the disappointing GDP contraction of -1.4% q/q (1.1% q/q forecast).
BoJ diverges further away from Fed as it defends 25bps on its 10-year treasury. Core PCE moderates slightly, but employment costs are up. Advanced GDP stumbles to -1.4%contraction Q/Q. The RBA surprised with a 25bps hike, and the market looks to the Fed announcement on Wednesday for an expected 50bps hike and QT information. The market expects the BoE to raise rates by 25 bps, and Friday sees the NFP…
The required rate of return is in flux. This adjustment increases uncertainty in the financial markets.
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