Fed’s Incoming Voters Skew Hawkish. Biden Picks May Tilt Balance
“On paper, the U.S. central bank’s policy-setting committee is set for a hawkish lean this year as incoming voters in the annual rotation among regional Fed presidents replace some colleagues who’ve typically been more dovish. The 2022 calculus will be a little tricky though, because the Biden administration could tilt the balance with its picks to fill three open seats.”
Inflation Surge Puts U.K. on Track for the ‘Year of the Squeeze’
“U.K. households are heading into the “year of the squeeze” as surging energy bills and faster inflation eat into incomes, according to the Resolution Foundation think tank. In a grim report days before the New Year holiday, it said real wages will effectively stagnate in 2022, rising just 0.1%. In three years, they’ll be 740 pounds ($996) a year lower than if the pre-pandemic wage trend had continued.”
China’s Stable Economy Clouded by Property and Export Outlook
“China’s economy expanded at a moderate pace in the final month of the year, supported by better business sentiment, easing factory inflation pressures and faster car sales. However the slumping property sector and slowing external demand are clouding the outlook for the world’s second-largest economy. That’s the outlook from Bloomberg’s aggregate index of eight early indicators for this month. The overall number stayed unchanged in December, indicating the economy is still improving at a stable pace, but there are mixed signals from some of the real-time economic data.”
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