28m ago
Dimon Says US Economy Booming, But Recession ‘Not Off the Table’
, Bloomberg News
(Bloomberg) -- The US economy is “kind of booming” right now, Jamie Dimon said, adding that he wouldn’t take a recession off the table yet.
“We don’t manage off a base case, we manage off the full spectrum of risk,” the JPMorgan Chase & Co. chief executive officer said via video link at the Australian Financial Review Business Summit on Tuesday.
12h ago
ECB Can Cut Rates Even If Fed Doesn’t, Unicredit’s Nielsen Says
, Bloomberg News
(Bloomberg) -- The European Central Bank shouldn’t worry about cutting interest rates if that means decoupling its policy from the Federal Reserve, Unicredit economist Erik Nielsen said.
The Italian bank’s chief economics adviser told Francine Lacqua on Bloomberg Television that a strong labor market with elevated wage growth and lots of fiscal support could mean the US economy should stay constricted. If so, euro-zone officials should take a different path, he said.
“The probability is certainly measurable that the US could need to keep rates higher for longer — but Europe not,” Nielsen said.
Investors have bet on cuts materializing in tandem by both jurisdictions in June. Questioned on that view, ECB President Christine Lagarde last week insisted that her institution “will act independently.” Her Finnish colleague Olli Rehn declared that “the ECB is not the Fed’s 13th Federal District.”
Opinions differ on their freedom of maneuver. Allianz Chief Economist Ludovic Subran reckons that a scenario where US rates stay high while euro-area borrowing costs fall would be “horrible for the ECB” because “the financial flow risks are too high.”
Nielsen, in contrast, reckons policymakers would be “relaxed” about the exchange-rate consequences.
“Whether euro-dollar goes a couple of numbers lower, who cares?” he said. “It’s not inflationary to any measurable extent, and it would tell the market that they are really running monetary policy for the euro zone and not just sort of backpedaling behind the Fed, which it looks like they do. I’m not saying they’re doing it, but in reality that is what has happened.”
He added that he’s more worried about other things at present, including the Middle East, commodities, the prospect of Chinese pressure on Taiwan, and supply chains.
No comments:
Post a Comment