Wednesday 14th September 2022
Markets were caught off guard by the higher-than-expected inflation rad fom the US. The fall in energy prices has been offset by a broad-based rise across all other sectors. US equities fell heavily, bond yields rose and the US dollar gained significant ground. NAB’s Ray Attrill says the results have raised the spectre of a possible 100bp rise by the Fed and a higher terminal rate. The UK gets their inflation numbers later, after falling unemployment numbers and rising wages yesterday. So what about Australia, where the NAB business Survey showed improvements in business conditions and sentiment – but, as we’ve been discussing lately, isn’t good news bad news?
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Turn around on trade war but downturn in Germany
The markets reversed their position on optimism over US China trade talks, but NAB’s Tapas Strickland wonders what’s really changed?
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Inflation. Is it a good or bad thing?
Isn’t low inflation a good thing? Not so, says Steve Keen as he discusses the role of inflation in monetary decisions made by Reserve Banks around the world.
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US dollar rises as Powell stays put
The news that Powell will stay on as head of the Fed pushed bond yields and the US dollar higher, but NAB’s Ray Attrill says the Aussie dollar held its own, helped by yesterday’s border reopening news.
