September 18, 2023
United States:
Fed’s Policy Paradox: Too-Slow Growth Threatens Inflation Fight
Faced with only limited signs of a slowdown in US demand despite more than five percentage points of interest-rate hikes, logic would say the Federal Reserve needs to do more.
But policymakers and Fed watchers are now giving more attention to a new line of argument, that central banks need to take account of what their actions mean for the supply side of the economy. The implication: Too-high rates could actually undermine the inflation fight, by squelching the benefits of increasing supply — which are just now coming on stream.
Europe:
ECB May See 2% Inflation Sooner Than Forecast, Portugal’s Raposo Says
The European Central Bank may see inflation returning to its 2% target sooner than currently forecast, considering the fragile state of the economy, according to Clara Raposo, vice governor of the Bank of Portugal.
While Raposo said she’s “not pessimistic” about the outlook, she expressed concern that dwindling export demand could further weigh on an economy already struggling to grow.
Asia:
India Steel Tycoon Plans $336 Million Share Sale of Port Unit
Steel tycoon Sajjan Jindal’s ports unit is seeking to raise as much as 28 billion rupees ($336 million) through an initial public offering that is set to become the second-biggest in India this year.
JSW Infrastructure Ltd. is selling only new shares in the IPO, and has set a price range of 113 rupees to 119 rupees each, it said in a statement Monday. The offer opens on Sept. 25 and closes on Sept. 27.
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