
Recent assessments of the U.S. economy indicate a firm economic trend, although experts caution that vigilance is necessary due to potential lagging effects from rapid interest rate hikes. Improving market sentiment is attributed to receding concerns regarding the economy, with expectations of a soft landing. However, the situation requires careful monitoring as both positive and negative risks are being considered. Federal Reserve Bank of Chicago President Austan Goolsbee highlighted a concentration of treasury clearing as a risk in the $28 trillion U.S. Treasury market. This concentration has become more pronounced in recent years, raising concerns about its implications for market stability. Meanwhile, the Reserve Bank of Australia (RBA) has warned that the supply gap could be larger than anticipated, which may necessitate stricter policies. The RBA board has shown little tolerance for inflation exceeding predictions and cautioned against excessive reliance on historical data, noting a significant decline in the job market that could lead to future easing of policies.
RBA minutes not adding too much, final paragraph unchanged from September - still "vigilant to upside risk to inflation" https://t.co/YzfhLrqSeU
RBA WARNS AGAINST EXCESSIVE RELIANCE ON HISTORICAL DATA
RBA WARNS OF SIGNIFICANT DECLINE IN JOB MARKET, FUTURE DATA MAY NECESSITATE EASING
