An update on latest developments in the US economy

The Swiss National Bank cut its key rate to 1.50%, surprising markets as the first major central bank to lower rates post the 2022/23 hike cycle, citing effective inflation control and improved economic growth forecasts, aiming to support economic activity without undue pressure.

From global influence to economic indicators, let's dive into the facets of this retail phenomenon!

US House of Representatives ousted Kevin McCarthy as speaker, a first in U.S. history. This is likely to add to bond and equity markets volatility.

The FOMC kept rates unchanged as expected but made clear that higher rates are the new normal. US 2-year yields hit the highest level since 2006, after what can be described, as a still somewhat hawkish Fed.

The ECB just raised its key rates again today, by 25bp (main Refi rate at 4.50%, deposit rate at 4.00%).

It’s been a challenging summer for the Chinese real estate market, as the difficulties faced by Chinese developers continue to cast a shadow over the industry.

Fitch Ratings downgrades the U.S. from AAA to AA+ due to debt ceiling standoffs and fiscal concerns. Disagreements arise, but the downgrade reflects rising debt and governance issues. Markets react with higher bond yields, prompting a closer look at potential implications for investors.

The possibility of a “technical default” by the US has been raised as the current debt limit for the US government, set by law, is expected to be hit sometime during the summer.

Jerome Powell spoke yesterday in the US Senate to present the Fed’s semi-annual monetary policy report. The Fed’s Chair took this opportunity to reiterate the commitment of the Fed in bringing inflation lower.