August 20, 2024
United States:
Fed Confronts Up to a Million US Jobs Vanishing in Revision
US job growth in the year through March was likely far less robust than initially estimated, which risks fueling concerns that the Federal Reserve is falling further behind the curve to lower interest rates.
Goldman Sachs Group Inc. and Wells Fargo & Co. economists expect the government’s preliminary benchmark revisions on Wednesday to show payrolls growth in the year through March was at least 600,000 weaker than currently estimated — about 50,000 a month.
Europe:
Germany’s Strong Wage Growth Adds to ECB’s Inflation Struggle
Robust German wage growth isn’t abating and will likely keep inflation high, according to the Bundesbank – a worrying signal for the European Central Bank as it battles to return price gains to its 2% target.
Collectively agreed earnings increased by 4.2% in the spring, Germany’s central bank said Tuesday in its monthly report. It highlighted that unions’ demands remain high — between 7% and 19% for a period of 12 months.
Asia:
Radical Changes to India Inflation Regime Are Risky, Study Shows
India’s government should not alter the inflation-targeting framework adopted by the central bank to focus on core inflation, which excludes volatile food and fuel prices, as doing so would be counterproductive, according to a study.
The paper by think-tank National Council of Applied Economic Research addresses the ongoing debate among policymakers over whether food prices should be stripped from inflation targeting. Economists argue that this approach is not feasible in a country like India, where food makes up nearly half of the consumer price index basket.
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