US Watch: Policymakers losing control of their narrative?
Economics: Fed’s grasp of the economy can slip
- Higher inflation goal means risk/reward favours FOMC doing more now
- June employment data do not alter the narrative of slower growth
- Is 2019 a repeat of 2016? Construction data say no
Markets: Fed losing control of the funds rate?
- Controlling fed funds rate floor to get tougher with low excess reserves
- New debt ceiling to boost issuance and again widen funds/IOER spread
- Stealth QE to the rescue?
Politics: New era of arbitrary political risk for tech
- Weaponizing tech interdependence
- Huawei still in US sights
- Japanese export restrictions threaten global supply chains