Recession

The Minneapolis Federal Reserve chief said that policymakers need to see ‘a lot’ more data showing inflation is trending down before an interest rate cut.

‘I’m not ruling out potential interest-rate increases from here,’ Minneapolis Federal Reserve President Neel Kashkari said.

Chancellor Jeremy Hunt declared the economy is ’returning to full health' after GDP expanded by 0.6 percent in the first quarter.

Over the next six months, it is estimated that fewer American consumers plan on buying homes or big-ticket appliances.

‘Deficits which basically aren’t going to go away as far as the eye can see,’ JPMorgan CEO Jamie Dimon said, while warning of stagflation.

While the recent job numbers ‘look shiny from a distance,’ economic forecaster Sean Snaith said that ’there’s a little bit of tarnish.’

‘There seems to be a large number of persistent inflationary pressures, which may likely continue,’ Mr. Dimon wrote.

‘Beware of higher rates and recession,’ he said.

But what impact will higher inflation have on interest rates moving forward?

New revised GDP data show better-than-expected economic growth in fourth quarter 2023, but real-time GDP estimates for first quarter 2024 dropped sharply.

Larry Fink predicts higher inflation for longer ‘and much of that is going to help those people who are worried’ about inflation.

With local authorities facing cash-flow problems, there are growing concerns about the $9 trillion LGFV debt market.