It’s becoming increasingly clear conquering it means a sharp economic downturn. Investors are betting the decision makers will throw in the towel.
under the weight of rising mortgage payments and brace themselves for years of pain, financial markets have suddenly turned much more optimistic.
Investors believe that for all central bankers’ tough talk – and last week the head of the US Federal Reserve Jerome Powell repeated that although there was a risk aggressive rate hikes could spark a recession, a worse mistake could be failing to curb inflation – they’ll quickly change their tune when they’re confronted with the reality of a shrinking economy.As a result, bond markets are now trimming their expectations for future Fed rate hikes.
Most economists believe a 50 basis point rate hike would help to emphasise Lowe’s point that inflation is a serious problem, and that interest rates are inevitably headed higher. The picture was equally bleak in the eurozone, where manufacturing output fell to its weakest level since August 2020, according to SAnd there was little sign of respite, with new orders falling at the fastest pace since May 2020,
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A soft landing is becoming a distant dreamAeroplane metaphors do little to disguise the fact that central bankers are struggling with the inflationary overshoot.
Read more »
Central banks have ‘miscalculated’ just how ‘persistent’ inflation was going to be
Read more »
Dashboard of decline: seven charts that explain Britain’s economic crisisThe UK looks set for a recession and a longer battle with inflation than many of its neighbours. This is why
Read more »
Petrol prices to skyrocket as cut to fuel excise set to endMotorists should plan for a temporary cut to the fuel excise to end in September, with a rise in petrol prices to add to growing cost-of-living pressures. auspol 7NEWS
Read more »
‘Everybody thought they were the exception’: Start-ups’ optimism hits hard realityThis week it became crystal clear that the music has stopped for start-ups as rapid rises in interest rates, fears of runaway inflation and plunging consumer confidence spook investors. | nickbonyhady
Read more »
Australia is in the middle of a rental crisis. This is how we got thereAustralia is in the middle of a rental crisis with many tenants priced out of the market and struggling to find a home, sparking acts of desperation. 7NEWS
Read more »