Janet Yellen has delivered what observers see as her last testimony at both Houses of the Congress. Rumours increasingly point to the President’s chief economic advisor as the potential successor when her mandate comes to an end in February. Mr Trump has never disguised his contempt for her, whom he depicted in one of his twits as the champion of low inflation.
Yoichi Funabashi and Harry Dempse via Caixin |Yoichi Funabashi and Harry Dempse via Caixin | Sino-Japanese relations have been stuck in a political quagmire for over six years. Tensions over the Senkaku/Diaoyu Islands have resurfaced time and time again since September 2010, when a Chinese fishing boat rammed two Japanese coast guard ships and its captain was arrested by the Japanese.
The G-20 Summit in Hamburg has shown how useless this gathering has become nowadays. Its contribution to world policing stands close to zero. No wonder. The only positive outcome emerging from the meeting was the opportunity it provided for enhancing personal relations and overcoming mutual grievances. Mr Trump excelled in this job when meeting Mr Putin.
Tariq Al-Shammari | During Barack Obama’s second term in office, the US witnessed significant changes in its National Security Strategy. As per this policy, Washington and London agreed to increase the military and security role of Britain in the Gulf, while America had the opportunity to consolidate its influence in the Asia Pacific. Many articles have been written on this issue by analysts at some of the world’s leading think tanks.
Not everything is clear through a crystal ball. The Fed is in the process of “normalising” interest rates, but one has to ask whether anyone really believes this…In other words, it appears the market is not convinced that the economy is getting stronger, nor that the inflation rate is hugely threatening.
Japan’s Prime Minister Shinzo Abe signed on Thursday a political agreement on the EU-Japan trade deal, which would be likely completed within months,expectedly by January. Officials said it was not clear at this stage how the EU-Japan deal would be ratified in Europe. Full national ratification gives every national parliament and some regional ones a veto.
The homeownership rate among young adults in the United States has plunged to a record low, helping to explain the slow recovery in single family homebuilding. In order to understand the future of the housing stock, it helps to tell that there are currently 75 million individuals considered to be Millennials in the US with an average age of 27.5. Acording to BoAML, “in theory, this should underpin growth in homeownership. But, it is complicated – we have to understand the ability of Millennials to afford housing and the desire to become homeowners vs. renters.”
The communication released after the Fed’s June meeting, along with the publication of the system it will use to potentially reduce its balance sheet, shows there is strong support for continuing with the normalisation of US monetary policy.
Not really. The Fed hid it and forgot where it put it! They has raised rates three more times since. Inflation hasn´t gone up, as the neofisherians would have us believe, but there´s been no recession either.
The US economy has entered its ninth year of growth and the recovery could last over 10 years, clocking up a new record. At this stage the doubt surrounding an atypical recovery is whether the best thing is for the Fed to maintain its monetary policy of the last few months and continue to gradually raise interest rates, despite the absence of inflationary pressures.