April 29, 2024
United States:
Fed Rate-Cut Debate Shifts From When Toward If on Inflation Data
The debate for the Federal Reserve is beginning to shift from how many times to cut interest rates this year to whether to cut them at all in 2024.
With policymakers widely expected to hold rates steady at a more than two-decade high at the conclusion of their meeting Wednesday, so much of the focus will be on any pivot in the tone of the post-meeting statement and Chair Jerome Powell’s press conference.
Europe:
Germany’s Economy Shows Signs of Life But Industry Is Struggling
Germany’s economic prospects are looking up after two grueling years of near-zero growth. The consumer-led revival, though, papers over enduring industrial weakness for which there’s no quick fix.
Data this week signaled the fledgling recovery in Europe’s largest economy is gaining momentum — especially in service sectors like tourism and hospitality. The mood among businesses is perking up as confidence builds that a widely anticipated winter recession has, in fact, been avoided.
Asia:
Chinese Bonds Dodge Global Debt Selloff as Yield Gap Widens
China’s sovereign bonds have once again dodged a rout in the global debt market, showcasing one of their frequently cited attractions for investors — a low correlation with their worldwide peers.
The nation’s benchmark 10-year yield has dropped about 23 basis points this year, while similar-maturity US Treasury yields have jumped 78 basis points. China’s outperformance is being driven by a differing economic cycle: the central bank is looking to ease policy to support growth, while policymakers in much of the world keep interest rates elevated to suppress inflation.
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