Walk The World
Being “data dependent”, the Fed will need to react to the latest data when they consider the next hike. Household confidernce has improved (from a low level) and jobs availability is rising.
Meantime in Europe, inflation is forcast to run higher thanks to gas prices.
Markets now expect higher rates for longer, which is why stock markets are weaker.
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Caveat Emptor! Note: this is NOT financial or property advice!!
First?
Corporate greed at it’s finest .
It’s not just inflation U.S. fighting now Mr. North, they’re defending more than current prices. It pays remember that. Very useful commentary Mr. North.
To start with central banks thought they could get away with this transitory nonsense with the hope they wouldn’t have to do any damage to economy’s and asset prices by forecasting interest rates will lift before 2024. Then this changed to getting interest rates to more neutral settings why’ll many countries start introducing many wage increases. All this mucking around has wasted a lot of time and made inflation harder to bring down. OCRs need to shoot up high and fast . All central banks have done is guaranteed recessions and assets crashing. But it ok , keep blaming Russia and petrol instead of the 100 year pandemic and the hangover from it
At this point I'm waiting for the whole global economy to blow up. Wage inflation HAS to arrive with such a strong demand for labour and when wages inflate we'll see some businesses go under.
European countries and the US are all holding huge amounts of debt. Without spending cuts those economies are either going to need to print money or raise taxes.
It's really hard to see this ending well. It feels like we're currently sitting in the eye of the hurricane. We have the US mid terms coming up after that could be the most bitter winter in a generation for the Northern hemisphere.
Given that the RBA likes to keep up with the FED, we should expect another interest rate hike next week.
Thank you Martin for keeping us up on this crazy twist and turn global economy. Please hit the like button people.
Good no excuses for the useful idiot Philip Lowe not to raise by 1% next week
3:00 “as employers compete for a shrinking pool of people willing to put up with their whipsaw policies and ineffectual management”
Slovenia ha ha……former Nazi Lyenko Urbanchich, who was obviously Catholic, fled to Australia after WW2…..and was one of the major contributors to the Liberal party, along with other Nazi members who fled from Hungary, Croatia, and Germany.
Doesn't matter, banks are cutting their own rates. RBA is irrelevant
We lurch from crisis, to crisis, to crisis.
Our governments are failing us!
This inflation is caused by supply line issues..
Not by supply and demand.
Interest rates should never have went under 5.5% in the first place.
Get rid of the mandatory WorkCover JAB and watch how many people return back to the workforce.
Up up up and away
Rates the only way r up
Goldman Sachs is part of the criminal cabal. Please try not to quote them in your reports, Martin.
If the 2.25% to 2.50% Fed Funds rate increases .75% in September and , say, .50% in October, then RBA will raise the OCR to at least 3 % by November.
Labour tightness is only part of it. The biggest driver of employment (and inflation) is demand and the biggest driver of demand is all that stimulus that was created during COVID, and is still being poured into the global economy!
ECB unworthy of their suits, raising interest rates to slow inflation whilst wealth decreases faster than ever due to cost of living hikes. This inflation isnt due to voluntary spending…
BREADS GONE UP ANOTHER 30 CENTS! IM SHATTERED!