The annual Jackson Hole conference brought the world’s economic powerbrokers together. It is clear they are still grappling with the new world order as uncertainty reigns.
into whether he thought the Fed’s 5.25 percentage points of rate rises in less than 18 months had conquered the worst inflationary outbreak in decades, leaving financial market participants in the dark as to whether US rates have peaked or whether they face at least one more rate rise before the end of the year.
There have been changes to labour markets, which are, as she said, historically tight in advanced economies. The pandemic accelerated digitisation and vastly expanded remote working even as generative artificial intelligence has taken off, with its potential to both destroy jobs and create new ones. According to Lagarde, the response to climate change and the re-shoring and friend-shoring of supply chains are likely to lead to new supply constraints and could see a phase of heavy investment over a relatively short time horizon; one largely insensitive to business cycles.
Most of the issues Lagarde touched on are long term and structural and will require central banks to incorporate a range of new influences into their thinking and decision-making. In the near term, of course, they still have to deal with the current state of their economies. The markets took that to mean there would be no additional increases at next month’s meeting of the Fed’s Open Market Committee but that there could be one at the November or December meeting.
The bond market’s investors, confronted by the wall of supply that looms as the US Treasury raises the $2.8 trillion it says it will tap markets for in the December half, are convinced market yields will continue to rise.The modest sell-off by equity investors over the past month suggests they, too, are nervous about a market trading at nearly 19 times projected earnings compared with its historical average of about 16.5 times. .
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘New playbook needed’: Lagarde warns of uncertain timesGlobal upheaval is unleashing persistent price pressures that present new challenges, economists told the annual Jackson Hole gathering.
Read more »
20 things that will surprise first-time visitors to MelbourneWhile graffiti-strewn laneways lined with hole-in-the-wall venues are a cliché for a reason, there's so much more to Melbourne than meets the eye.
Read more »
20 things that will surprise first-time visitors to MelbourneWhile graffiti-strewn laneways lined with hole-in-the-wall venues are a cliché for a reason, there's so much more to Melbourne than meets the eye.
Read more »
20 things that will surprise first-time visitors to MelbourneWhile graffiti-strewn laneways lined with hole-in-the-wall venues are a cliché for a reason, there's so much more to Melbourne than meets the eye.
Read more »
Aussie paddlers on top of world champs medal tally after bagging three goldThe Australian squad claims three gold among a haul of five medals at the ICF Canoe Sprint and Paracanoe World Championships in Germany.
Read more »
Behind closed doors: inside the world of private art collectorsThe owners of six Australian art collections reveal how they started and why they can’t stop.
Read more »