
Economics & Growth | UK | US
Economics & Growth | UK | US
Summary
• The FOMC minutes suggest a faster taper announcement at the December meeting.
• Details of the PCE release, plus easing bottlenecks, suggest it could be close to peak.
• Continued weak bargaining power of workers and substitution of capital to labour support medium-term disinflation.
• Real consumption growth could slow going forward due to stagnating real wages and an already low savings rate.
Market Implications
• A faster taper announcement would be consistent with three hikes in 2022, but these are already priced in.
Summary
• The FOMC minutes suggest a faster taper announcement at the December meeting.
• Details of the PCE release, plus easing bottlenecks, suggest it could be close to peak.
• Continued weak bargaining power of workers and substitution of capital to labour support medium-term disinflation.
• Real consumption growth could slow going forward due to stagnating real wages and an already low savings rate.
Market Implications
• A faster taper announcement would be consistent with three hikes in 2022, but these are already priced in.
and enjoy exclusive professional features such as in-depth analysis, insightful op-eds, and more.
Already have Macro Hive Professional account? Log in
Spring sale - Prime Membership only £3 for 3 months! Get trade ideas and macro insights now
Your subscription has been successfully canceled.
Discount Applied - Your subscription has now updated with Coupon and from next payment Discount will be applied.