Monday, December 6

Inflation and the rush of central banks

The Fed decided at its last meeting in November to reduce asset purchases by $ 15 billion a month, which rises to $ 120 billion each month.

But only twenty days later that script seems to be no longer valid. According to a report by the investment bank Goldman Sachs, there are several members of the US central bank who in recent days have expressed their desire to accelerate tapering.

And they have commented on their desire to discuss it at the December meeting. The plan would be to double the planned money and for the reduction to be 30,000 million dollars per month.

Inflation expectations grow

This plan to accelerate the end of the stimuli responds to higher inflation expectations, it is no longer as transitory as announced at first. And to the discontent that grows in the United States due to the unstoppable rise in prices.

The Fed has to start taking steps that Goldman Sachs says will culminate in a rate hike in June, another in September and another in December 2022, a total of 3, next year.

This is one of the informative arguments of Also pay attention to the controversy generated by the CEO of JP Morgan, Jamie Dimon, when he said that his bank would outlast the Chinese Communist Party.

He spoke these words a week after visiting Hong Kong. He has had to publicly apologize for his lack of tact and although the Chinese Foreign Ministry has accepted them, experts are suspicious.

They recall that other comments from bank executives such as HSBC o UBS they had consequences. The controversy continues to live in the financial circles of the Asian country.

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