Investors expect central banks will tame inflation whatever the cost, even triggering recession if necessary. This may indeed be policymakers’ approach in the short term as they seek to re-establish their credibility.
The Federal Reserve hiked the fed funds rate by 75bp to 2.25-2.50%, the second consecutive 75bp rate hike. The Fed rate decision was widely expected.
The partial shutoff of gas deliveries is already affecting European growth momentum via heightened uncertainty, which is adding to the other factors that are darkening the Eurozone outlook.
The first sequence of the double bear markets (in equities and long-term bonds) adjusting to the end of easy money and rising inflation is almost complete.
After years of dormant peripheral risk, the recent resurgence of fragmentation issues in Europe, amid rising stagflationary risks at a time of Central Banks committing to tame inflation, puts the delicate fiscal and monetary equilibrium under the spotlight.
There is a large debate on the optimal degree of savings’ liquidity in retirement systems. Liquid retirement savings allow people to flexibly respond to life events such as income shocks but can also lead to undersaving.
With the economic situation having deteriorated considerably since the beginning of the year, it is vital for the Conservative Party to agree on a new leader quickly.
At its July meeting, the ECB hiked its three key interest rates by 50bp for the first time in more than a decade, bringing its rates out of negative territory.
After a series of events that started on 14 July, when the Five-Star Movement (5SM) abstained from a Parliamentary vote on a number of economic measures, Draghi’s time as Italian PM comes to an end.
