May 21, 2024
United States:
Fed’s Waller Needs ‘Several More’ Months of Good Inflation to Cut Rates
Federal Reserve Governor Christopher Waller said he needs to see “several more” months of good inflation figures to begin interest-rate cuts, though recent data suggest progress has likely resumed.
Waller said April consumer price figures, which showed a key gauge of underlying inflation slowed for the first time in six months, were a sign price pressures are not accelerating. He also noted softer retail sales in the month and signs of slowing in the labor market.
United Kingdom:
IMF Warns UK Treasury Needs £30 Billion More to Stabilize Debt
The International Monetary Fund warned that the UK Treasury needs to find £30 billion ($38.2 billion) of savings to stabilize its debt burden, undercutting Prime Minister Rishi Sunak’s ambition to reduce taxes before the next election.
The estimate released with the institution’s annual health check into the economy also upgraded the outlook for growth and predicted a “soft landing.” Even so, advice on the scale of the UK’s budget gap highlighted the strain on the public finances already struggling to cope with demands on health, defense and social care.
Asia:
Korean Consumers Turn Pessimistic as Rates Stay High for Longer
South Korea’s consumers turned pessimistic for the first time this year, indicating that their confidence may be fraying as interest rates stay elevated for an extended period.
The Composite Consumer Sentiment Index slumped in May to 98.4, falling below the threshold of 100 that divides optimism and pessimism for the first time since December, according to Bank of Korea data released Tuesday. It also marked the biggest drop since September 2023.
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