By Michael Every of Rabobank
It was a quiet day yesterday with Asia out, reflected in the fact that Bloomberg had ‘TikTok Restrictions Are Irking US College Students’ as one of its daybreak headlines before replacing it with US warnings to China over the latter’s aid to the Russian war effort. Of course, as just shown, there are far more important things to discuss than a lack of TikTok:
In economics, the Wall Street Journal’s Timiraos (whispering again?) has noticed that if China opens up and stimulates, it complicates the inflation picture for central banks.
In politics, a key FBI figure in ‘Russiagate’ has been arrested for colluding with a Russian; and
In political-economy, there was discussion over a recent statement by the Fed’s Waller that appears to suggest the FOMC may carry out QT even when rates are being cut. If true, this severs the traditional link between the direction of rates and