Macro Monkey Says
Spooky Season
We’re a long way off from Halloweeen, but central bankers on both sides of the pond are wasting no time spooking markets. To be fair, they pretty much do that all year round anyway.
But yesterday, the central bank-induced spook seems to have rallied off the lows, potentially even setting a new YTD high (can someone start measuring this please? thank you).
An inflation reading in the land of fish & chips combined with JPow spitting a fiery game in Congress yesterday was not the vibe markets were looking for.
If you’re a fan of the 4% inflation we’ve had over the past year in the US, well, then you’re gonna love this. Over in the UK, inflation last printed at an annualized rate of 8.7%—the same rate as the month prior—and shows no sign of slowing down.
So Americans are now seeing about half the inflation that their English brethren are experiencing, kind of like when we halved their empire back in 1776.
Speaking of beating England, the only beating we saw in Washington yesterday was on none other than Mr. JPow himself. To be fair, it was a less heated lashing than some he’s seen in the past.
But just wait until the Fed’s silver fox locks eyes with his biggest hater, Senator Elizabeth Warren, later today. These two lowkey look like siblings, and just like siblings, their past battles have been absolute spectacles.
|