August 24, 2023
United States:
Bullard Says Reaccelerating US Economy Could Prompt Higher Rates
Former Federal Reserve Bank of St. Louis President James Bullard said a pickup in economic activity this summer could delay plans for the Fed to wrap up interest-rate increases.
“This reacceleration could put upward pressure on inflation, stem the disinflation that we’re seeing and instead delay plans for the Fed to change policy,” Bullard said Thursday during an interview with Bloomberg Television ahead of the Kansas City Fed’s annual economic policy symposium in Jackson Hole, Wyoming.
Europe:
France to Toughen Controls on Foreign Investment in Local Firms
French Finance Minister Bruno Le Maire pledged to reinforce controls on foreign investment in the country’s businesses in order to protect strategic industries.
The sectors covered will be expanded to include companies involved in the extraction and processing of critical raw materials, he said. Controls will also be extended to the French branches of foreign firms to crack down on the circumvention of checks.
Asia:
China’s LGFV Insiders Say $9 Trillion Debt Problem Is Worsening
China is attempting to defuse risks from its $9 trillion pile of off balance-sheet local government debt, without resorting to major bailouts.
That path forward is a treacherous one for President Xi Jinping’s government. To thread the needle, the provinces and cities whose borrowing drove the world’s largest infrastructure boom will need to roll back their spending and restructure debt — all without drastically dragging down economic growth. If they fail, it could thrust the world’s second-biggest economy into a prolonged malaise.
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