Inflation is improving in the U.S., but the Fed’s 2% target is a long way off, while the U.S. economy is more robust than the European economy: For Steven Bell (Columbia Threadneedle Investments), a rise in U.S. rates is more likely.
An unrestricted rise in prices Natural gas In Europe (it has broken the threshold of 300 euros per megawatt hour in recent days) this winter presents a slowdown in Europe and the United Kingdom. On the contrary, the US economy continues to be strong. “Nevertheless,” he says Steven BellChief Economist EMEA Investments in Columbia Threadneedle “While there is a lot of good news about inflation in the US, hitting the 2% target is almost impossible. Central Reserve Interest rates should continue to rise until it causes a recession.
The situation in the United States has stabilized
Compared to June, the situation in the US has stabilized. there yield curve The upside remains (a sign that has often heralded recessions in the past), but gasoline prices have fallen from $5 to $4 a gallon, jobless claims have stalled and the strength of U.S. consumer spending has surprised pessimists. A series of hawkish comments from members of feeder It has dashed hopes that the US Federal Reserve will stop raising rates anytime soon.
** Author of this article FinanciaLounge
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