Fed ready to fight inflation on two fronts
Monday 17th January 2022The Fed kicks of its schedule of FOMC meetings next week. We know tackling inflation will be front and centre, but as NAB\u2019s Ray Attrill points out, rate hikes are not the only tool they will be using. The minutes from the last meeting also suggest reducing their balance sheet will be part of the plan. Meanwhile, we\u2019ve seen a significant sell-off in bonds, as investors expect a strong economic recovery this year, as Omicron\u2019s impact wanes. Except in China, of course, which continues to pursue a zero-COVID policy, meaning supply chain disruption could remain, adding to inflation. China\u2019s Q4 GDP is the data to look out for today.
Hosted on Acast. See acast.com/privacy for more information.