Keeping you up-to-date with our latest happenings

Fed treads the line

Data released yesterday showed US consumer prices rising in May at the fastest pace seen since 2009,echoing much of the sentiment which appears to have been underlying market expectations over the last few weeks. Whilst the Federal Reserve insists this inflation is transitory to justify its inaction, the definition of “transitory” is open to interpretation. Driven by a vastly expanded money supply and a number of longer-term trends, it is perhaps more likely that inflation will remain high for some time.

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A western alternative to belt and road and expected rate rise

The last months have taught us that market sentiment can hinge on the smallest miscue. A pause, redundant adverb or glance in the wrong direction can send the market into a frenzy. These days, Federal Reserve announcements are as much about stage management as they are hard economic policy and Wednesday’s meeting was no different.

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Stability and Soothing of words

Some stability returned to markets this week as central bank remarks which aimed to alleviate some of the tensions caused by last week’s Federal Reserve meeting seemed to have the desired effect. Signs that the Fed might be slowing down its bond buying programme or even beginning to discuss rate rises caused some volatility last week. Worries that faster inflation might speed up policy tightening seemed to fade following central bank remarks

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130 countries back global minimum corporate tax of 15%

The world’s leading economies have agreed a plan to ensure multinational companies pay a global minimum corporate tax rate of 15%. On Thursday the OECD announced the agreement between 130 different countries.

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Inflation: transitory or higher for longer?

While the financial downturn born of Covid has had myriad negative effects – workers were furloughed from their jobs, and high streets were hit hard – there’s been one surprising and anomalous consequence of this particular recession: with lockdowns eliminating the ability to go out and spend money, many people are finding their bank accounts unexpectedly flush with cash.

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Take not away the taper, leave it burning

Equity markets have been soothed by recent central bankers’ dovish speeches and have largely accepted, for now, that the surging consumer price inflation is transitory.

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