October 30, 2023
United States:
Middle-Class Americans Are Rattled by Fed’s Fight Against Inflation
Despite roaring growth and a resilient job market, more middle-class Americans are worried about the state of the economy than a year ago, a Harris Poll for Bloomberg News has found.
One big reason: The rapid increase in interest rates deployed by the Federal Reserve to rein in inflation, which are now expected to remain higher for longer.
Europe:
German Economy Shrank in Third Quarter Amid Recession Threat
German output shrank in the third quarter — raising the risk that Europe’s largest economy is headed for a recession.
Gross domestic product fell 0.1% from the previous three months, less than the 0.2% drop economists expected, the statistics office reported Monday, citing a pullback in household spending.
Asia:
Strong Dollar Keeps Rate Hikes on Table for Asian Central Banks
Asian central banks are seen to raise interest rates over the next six months, with a stronger dollar and rising oil prices keeping countries from Australia to Indonesia and South Korea on a tightening path.
Traders see an average 13 basis points of hikes in the Asia-Pacific region, excluding China, over the period, according to market implied policy rates. That compares with bets that rates will remain unchanged in developed markets excluding Asia while hefty cuts are seen in Europe, the Middle East and Africa as well as Latin America.
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