Communication Challenges

This week’s decision by the Fed to lower its key policy rate by 50bps was widely - but not universally - expected in financial markets. Still, the initial market response to this decision suggested that investors could be uncertain about what it implies for the economic outlook. In our charts this week we drill into the following factors:

·      The US yield curve

·      Global growth and inflation surprises

·      Supply chain pressures and monetary policy

·      Wage pressures in the US and Europe

·      UK inflation

·      Investment in AI