American productivity still healthy, recovery in retail sales in the euro zone, ANP measures in China disappoint expectations… What to remember from the news this week.
The prospect of Donald Trump’s possible victory in the US elections has led to a sharp rise in bond yields since the end of September. The increase is partly linked to concerns that Trump’s policies could cause higher inflation and exacerbate already high budget deficits and public debt.
Additionally, optimism about the positive impact on economic growth propelled the US dollar and stocks higher, with the S&P 500 hitting record highs on November 6, the day the election results were announced. While we anticipate some risks of rising inflation, the overall impact on the economy could depend on the timing of the implementation of his policy agenda, particularly on tariffs.
On the monetary policy side, the Fed reduced its interest rates as expected. It should continue to make its decisions based on macroeconomic data, being ready to adjust its approach if inflation deviates from its targets.
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