Daily update
Daily update
- The Federal Reserve meeting minutes signalled a gradual series of rate reductions next year (a quarter point each quarter seems reasonable). A December rate cut is also plausible, bringing interest rate reductions in line with the decline in the inflation rate.
- US trade representative nominee Greer has supported higher US consumer taxes, but his power in the incoming administration is unclear. US President-elect Trump’s trade tax plans provoked warnings of higher US gasoline prices. The auto sector has also highlighted how often cars cross the Mexico-US border during the manufacturing process. US tech companies are reportedly trying to stockpile components, knowing that they will be liable for any new taxes.
- With the US taking tomorrow off to prepare for the Black Friday consumption festival, there is a data dump today. Revised third quarter GDP is unlikely to move markets. October consumer spending and price data are important—inflation-adjusted spending has risen consistently since the end of the pandemic, with the recent focus skewed to services.
- German consumer confidence is unlikely to be an investor focus. ECB Chief Economist Lane is speaking—while any words from a chief economist must be heard with reverential attention, we have been hearing from the ECB an awful lot lately.
