usa port strikes may lead to inflation, the specific impact depends on the duration!
On October 1st, market analyst Jeff Cox wrote that the port strikes in multiple locations in the usa may rekindle inflation, while the greater economic impact depends on how long the strikes last.
Unexpected rebound in the number of job vacancies in the USA, manufacturing PMI continues to be weak.
1. The data released by the Bureau of Labor Statistics shows that the number of job vacancies on the last working day of August reached 8.04 million, the highest level since June; 2. The data released by the Institute for Supply Management shows that the Manufacturing Purchasing Managers' Index for September recorded 47.2, originally expected to rebound to 47.5.
Powell's speech reduced expectations of a sharp interest rate cut, causing the US dollar against the Canadian dollar to rise to near its recent high.
After Federal Reserve Chairman Jerome Powell's speech suppressing further large rate cuts, the Canadian dollar fell slightly against the US dollar, hitting a six-day low. However, despite the strength of the US dollar, the Canadian dollar still rose by 1.1% in the third quarter. Investor put bets on the Canadian dollar have dropped to their lowest level since April, while concerns about global weak demand have also put pressure on oil prices.
Chicago Fed Chair warns dock workers' strike may disrupt the supply chain, emphasizing that rate cuts need to gradually restore normalcy.
Gurley refused to disclose whether he supports a slight or significant rate cut at the next meeting, emphasizing instead the importance of considering the overall rationale behind the rate cut process.
Powell: Will further cut interest rates, rate cuts support an economic soft landing, pouring cold water on a substantial rate cut.
Powell stated that the economic conditions in the usa are good, and the Federal Reserve intends to use tools to maintain this situation. This is not a committee that is eager to cut interest rates quickly. If the economic performance meets expectations, this means that there will be further rate cuts this year, totaling 50 basis points. The "New Federal Reserve News Agency" review stated that the Federal Reserve currently sees no reason to cut interest rates significantly as it did at the recent meeting.
Powell: The Federal Reserve will gradually proceed with interest rate cuts, but monetary policy does not have a preset path.
① Powell recently stated that the Fed will gradually lower interest rates "over time," while reiterating that the overall economic conditions in the USA remain stable; ② Powell reiterated his confidence that the inflation rate will continue to approach the central bank's 2% target, adding that economic conditions have "laid the foundation" for further easing of price pressures.