Things are looking pretty grim for our economy right now. According to Citigroup economists, the odds of a global recession are about 50%. Citi Global Chief Economist Nathan Sheets told Yahoo Finance, “I would say that the recent economic data have been central banks’ worst nightmare. On the one hand, I would say there is very clear evidence of a slowing in global demand. And on the other hand, there is also clear evidence that inflation pressures are persisting. You kind of put that together, it’s really hard for central banks to fight that.” Meanwhile, St. Louis Federal Reserve President James Bullard said he expects another 1.5 percentage points or so in interest rate hikes this year.

 

Yahoo Finance/Brian Sozzi
Recent economic data have been the Fed’s ‘worst nightmare,’ economist says

The economy is looking pretty dreadful, and that won’t make the Federal Reserve’s job any easier as it tries to engineer a soft economic landing, one top Wall Street economist warns.

“I would say that the recent economic data have been central banks’ worst nightmare,” said Citi Global Chief Economist Nathan Sheets on Yahoo Finance Live (video above). “On the one hand, I would say there is very clear evidence of a slowing in global demand. And on the other hand, there is also clear evidence that inflation pressures are persisting. You kind of put that together, it’s really hard for central banks to fight that.”

The reads on the economy have collectively painted a picture of a slowing U.S. economy stuck with stubbornly high inflation.

Continue reading, here.

 

CNBC/Jeff Cox
Fed’s Bullard sees more interest rate hikes ahead and no U.S. recession

St. Louis Federal Reserve President James Bullard said Wednesday that the central bank will continue raising rates until it sees compelling evidence that inflation is falling.

The central bank official said he expects another 1.5 percentage points or so in interest rate increases this year as the Fed continues to battle the highest inflation levels since the early 1980s.

“I think we’ll probably have to be higher for longer in order to get the evidence that we need to see that inflation is actually turning around on all dimensions and in a convincing way coming lower, not just a tick lower here and there,” Bullard said during a live “Squawk Box” interview on CNBC.

You can read the full article, here.

 

ZeroHedge/Michael Every
Central Bankers Sound More And More Like Ron Burgundy

The world watched live last night Asia time as the news declared “The Nancy has landed”. Tweets flew about the Chinese closure of civilian airspace near Taiwan; of PLAN ships leaving port; of PLA jets in the air; and got footage of confused Chinese beachgoers looking a long line of PLA tanks trundling along in the sand. However, there was not an immediate military response – just China banning imports of Taiwanese biscuits. This saw a knee-jerk market relief response, meaning stocks and bond yields were both up.

However, it is still too early to presume the US has successfully carried out an ‘Im-Pelosi-ble Mission’ to restamp its security signature on the region. Indeed, alongside bristling Chinese social media and expected diplomatic protests, Beijing has announced its military will carry out exercises to “encircle” Taiwan from 4-7 August. It remains to be seen what happens after that.

Keep reading, here.

 

 

 

 

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