🚨 BREAKING:
➡️ US PCE Price Index (Aug) YoY 2.7% vs 2.7% Est PCE MoM 0.3% vs 0.3% Est ➡️US Core PCE Price Index (Aug) YoY 2.9% vs 2.9% Est (Highest PCE reading since February) MoM 0.2% vs 0.2% Est EXACTLY AS EXPECTED. BULLISH 🚀 FOR MARKETS
Maybe not a bad idea...
From Bloomberg
The Swiss National Bank is pursuing a steady monetary policy and leaving its key interest rate at 0%, which is reasonable given the current economic and political situation.
The Swiss economy is performing relatively well despite the US tariff shock, core inflation remains within a healthy range, and the ECB is also keeping key interest rates constant for the time being and is likely to continue to do so, meaning that the Swiss franc has hardly changed against the euro since the end of June. The hashtag#SNB mentions the great uncertainty surrounding the Swiss export sector, which is also the biggest question mark in our economic outlook for Switzerland at present. Should a significant deterioration manifest itself here, the SNB could come under greater pressure to lower interest rates below zero after all. The SNB's inflation forecasts also remain stable compared with the June forecast and are even rising slightly in the second quarter of 2028, which was forecast for the first time. Today's decision is therefore understandable across the board and should come as no surprise to the stock markets.
For the first 11 months of FY2025, the U.S. deficit has already hit $1.97 trillion.
That’s the 3rd-largest in history and the year isn’t even over yet. Source: StockMarket.News @_Investinq
The odds of an October rate cut have jumped to 94% 🚨🚨🚨
Source: CME Fed Watch tool, Barchart
Scott Bessent signaled that the U.S. is prepared to support Argentina amid its economic crisis, viewing the country as a key ally in Latin America.
He outlined possible measures—such as swap lines, dollar purchases, and using the Treasury’s Exchange Stabilization Fund to buy Argentine debt—showing Washington’s seriousness. The support is linked to President Javier Milei’s reform agenda, which Bessent praises for its focus on fiscal discipline and growth. U.S. backing could stabilize the peso, restore investor confidence, and counter China’s influence in the region. However, it carries risks: taxpayer exposure, Argentina’s history of failed reforms, and the danger of dependency. Bessent stressed that U.S. aid will only come with expectations of real follow-through from Buenos Aires, making success dependent on Argentina’s political and economic discipline. Source: StockMarket.news
Apollo’s Torsten Slok on US inflation: “72% of the CPI components are growing faster than the Fed’s 2% inflation target”
Source: Mo El Erian
Welcome to the era of stagflation-lite
Rising inflation Rising unemployment ...And a very skewed AI Boom The American middle class pays the heavy price, while the rich and superstar tech firms continue to thrive. Source: Heather Long @byHeatherLong
