Odd Lots: Kansas City Fed President on the Current State of Inflation
Source: Bloomberg Markets โ (cross-verified by 2 outlets โ full list below)
This year's Jackson Hole, the first of the Kevin Warsh era, comes at a very interesting time for monetary policy.
Kansas City Fed President Jeffrey Schmid joins Tracy Alloway and Joe Weisenthal on the Odd Lots podcast for a curtain raiser on the symposium and he shares this thoughts on the Fed's ongoing battle with inflation.
(Source: Bloomberg) The policymaker stopped just short of calling for an interest rate hike.
โก Effects Interpreter
๐World Economylow impact
What this means for you
- โถCentral banks abroad might recalibrate their own outlook off the back of this.
- โถTrade ties may tighten or loosen as the numbers sink in.
๐๏ธLocal Economymedium impact
What this means for you
- โถNeighbourhood businesses tend to feel big economic shifts eventually.
- โถWages and hiring nearby can bend with the wider economy.
๐ฆRates & Bankslow impact
What this means for you
- โถBanks generally prefer a wait-and-see approach before touching their rates.
- โถMortgage offers may firm up or soften as the picture becomes clearer.
โค๏ธHealthmedium impact
What this means for you
- โถSome people feel this news more keenly than others, and that's worth acknowledging.
- โถThe strain, if any, tends to show up quietly in everyday life.
๐ทWealthmedium impact
What this means for you
- โถNest eggs can wobble briefly before finding their footing again.
- โถKeeping perspective on your timeline usually beats reacting to any single story.
๐ Housinglow impact
What this means for you
- โถSurveyors and valuers tend to factor in wider trends gradually, not overnight.
- โถMortgage shoppers may find deals shift only slightly in the short term.
๐ Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone โ the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UAE depends more on local healthcare capacity than the figures above.