30th January 2023
Perspective News, The Cambridge Weekly
The Cambridge Weekly – 30th January 2023
Goldilocks in the air
Recent macroeconomic data releases across the western world report declining rates of inflation and no longer overheating (but nevertheless still positive) economic growth. In the US, the important milestone of the rate of personal consumption expenditure inflation falling below the interest rate has been reached. Perhaps unsurprisingly then, the term ‘Goldilocks’ (not too hot, not too cold) has returned to the market narrative.
US debt ceiling showdown looms (again)
It is that time of year already. Decorations have come down, resolutions have been made and broken, and the US is hurtling toward a debt crisis – albeit an entirely avoidable one. The US government’s total outstanding debt has once again hit the ceiling, a legal limit on how much the US Treasury can borrow. This limit is updated periodically by Congress and was most recently set at $31.4 trillion in December 2021. Secretary of the Treasury Janet Yellen announced earlier this month that this figure has been reached, meaning it will have to resort to “extraordinary measures” to make current cash reserves last.
LatAm common currency far from a Sur thing
Not many people think of the Eurozone as a role model of monetary stability. Perennial crises in Europe’s currency union have ensured that much. For some though, stability is relative. When you go through 50 crises a year yourself, just one or two might look pretty good. Leaders in Brazil and Argentina seem to have had something like this thought process. According to reports from Buenos Aires, South America’s two largest countries are set to announce preparations for a single common currency, which would become the world’s second-largest currency union after the Eurozone.