Charting the global economy: Fed headlines concert of rate hikes


On the other hand, Turkey was surprised with another rate cut despite inflation at a 24-year high and the lira at a record low. Officials in Hungary could make at least one more hike before considering ending the steepest monetary tightening cycle in the European Union.

Here are some of the charts that have appeared on Bloomberg this week on the latest developments in the global economy:

World

World Economy Chart: Fed Headlines Concert of rate hikes

The Fed embarked on a marathon week of rate hikes that also extended to central bankers in Taiwan, Sweden and Mongolia. Meanwhile, Brazil and Norway said they may take a break from tightening monetary policy. The Bank of Japan kept interest rates extremely low and Governor Haruhiko Kuroda said there was little prospect of a short-term rate hike.

World Economy Chart: Fed Headlines Concert of rate hikes

The price of copper — used in everything from computer chips and toaster ovens to power systems and air conditioners — has fallen nearly a third since March. Still, some of the biggest miners and metal traders are warning that a massive gap for the world’s most critical metal will emerge in just a few years.

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US

World Economy Chart: Fed Headlines Concert of rate hikes

Fed Chair Jerome Powell vowed the Federal Reserve would rein in inflation after officials hiked interest rates by 75 basis points for a third straight month and announced even more aggressive rate hikes than investors had expected.

World Economy Chart: Fed Headlines Concert of rate hikes

Already-owned home sales fell for the seventh straight month in August as rising mortgage rates further eroded affordability and dealt a significant blow to the housing market. The string of declines was the longest since the housing market collapse in 2007.

World Economy Chart: Fed Headlines Concert of rate hikes

According to a survey, more and more consumers have long-term credit card debt that is struggling to repay amid high inflation and rising interest rates. Sixty percent of credit card borrowers say they have had credit card debt for at least a year, up from 50 percent a year ago, according to CreditCards.com.

Europe

World Economy Chart: Fed Headlines Concert of rate hikes

The risk of a recession in the euro area has reached its highest level since July 2020 as fears mount that winter energy shortages will lead to a slump in economic activity. Economists polled by Bloomberg now put the likelihood of two consecutive quarters of contraction at 80% over the next 12 months, up from 60% in a previous survey.

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World Economy Chart: Fed Headlines Concert of rate hikes

Dockers in Liverpool, Britain’s fourth-biggest container port, voted unanimously to reject their employer’s latest salary offer – and walk away from the job for two weeks in a strike that was in full swing on Tuesday. It is the latest outbreak of labor unrest sweeping through major bottlenecks in the global economy.

Asia

World Economy Chart: Fed Headlines Concert of rate hikes

Singapore appears to be an attractive location for companies looking to leave Hong Kong, but they may find that a move to the city-state hurts their bottom line more than expected. With inflation rising to a 14-year high, spending, including hiring talent, office space and utilities, is rising faster in Singapore than its financial competitor, where rate increases have been more modest.

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World Economy Chart: Fed Headlines Concert of rate hikes

South Korea’s early trade data showed exports just barely growing in September, a sign of the fallout from lockdowns in China and a struggling global economy. Total exports fell 8.7%, led by a 14% drop in shipments to China.’

emerging markets

World Economy Chart: Fed Headlines Concert of rate hikes

Emerging Asian markets are reaping the rewards of years of foreign exchange reserve accumulation as they become a prime target for venture investors. Even as the dollar strengthened, the currencies of emerging Asia mostly outperform traditional havens like the yen and euro.

World Economy Chart: Fed Headlines Concert of rate hikes

Mexico’s inflation was little changed in early September, giving Banxico minimal leeway to slow the pace of rate hikes at next week’s meeting.

(Reporting by Molly Smith and Vince Golle with assistance from James Attwood, Maya Averbuch, Matthew Boesler, Enda Curran, Harumi Ichikura, Michelle Jamrisko, Sam Kim, Carolynn Look, Brendan Murray, Garfield Reynolds, Zoe Schneeweiss, Ailing Tan, Alex Tanzi, Craig Torres, Kevin Varley, Marcus Wong and Jordan Yadoo).





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