Overseas Headlines – September 21, 2021

United States:

Fed Seen Signaling Taper as Powell Plays Down Liftoff Countdown

“Federal Reserve Chair Jerome Powell will this week face the challenge of convincing investors that plans to scale back asset purchases aren’t a runway to raising interest rates for the first time since 2018. “You have two tools,” said Michael Gapen, chief U.S. economist at Barclays in New York, referring to bond buying and interest rates. “If you are making progress to start using one of your tools, that means you are making progress toward using the other.”

https://www.bloomberg.com/news/articles/2021-09-21/fed-seen-signaling-taper-as-powell-plays-down-liftoff-countdown?srnd=economics-vp&sref=FmvzgEwg

Europe:

U.K. Borrowing 25% Below Forecast in Budget Boost for Sunak

“U.K. government borrowing was well below official forecasts in the first five months of the fiscal year, providing a fillip for Chancellor of the Exchequer Rishi Sunak as he prepares for a review of tax and spending next month. The budget deficit totaled 93.8 billion pounds ($128 billion) between April and August, the Office for National Statistics said Tuesday. That’s 25% under the 125.7 billion pounds predicted by the Office for Budget Responsibility in March. The deficit in August alone stood at 20.5 billion pounds, higher than economists had forecast.”

https://www.bloomberg.com/news/articles/2021-09-21/u-k-borrowing-25-below-forecast-in-pre-budget-boost-for-sunak?srnd=economics-vp&sref=FmvzgEwg

Asia:

Bank of America Cuts China’s Growth Forecasts Up to 2023

“China’s economy will now grow at a slower-than-expected pace in the years through 2023 on delayed policy easing, according to economists at Bank of America Corp. The economists lowered their 2021 and 2022 year-on-year growth forecasts to 8.0% and 5.3%, down from 8.3% and 6.2% earlier, respectively. For 2023, the bank now sees an expansion of 5.8% from a previously expected 6.0%. It also sees more moderate inflation across the three year period.”

https://www.bloomberg.com/news/articles/2021-09-21/bank-of-america-cuts-china-s-growth-forecasts-up-to-2023?srnd=economics-vp&sref=FmvzgEwg

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2021-09-21T08:31:29-05:00