Get caught up.
Victoria Cavaliere
Ian Fisher
With America’s debt limit drama and its potential for triggering a catastrophic default in the rearview mirror, we return to your regular scheduled programming—the global battle against inflation. When (and how) will central banks declare some measure of victory over price surges and stop (or even reverse) more than a year of tightening? The Federal Reserve says it’s notched some and that the US economy is cooling down. But the job market hasn’t cracked, with payrolls still surging. At the same time, however, a household survey showed a rise in joblessness. That mixed bag, one would think, might cement the Fed’s perceived inclination to interest-rate hikes this month—were it not for a third, critical piece of data. The number of unfilled jobs in the US unexpectedly jumped to more than 10 million. In Europe meanwhile, underlying inflation dipped by more than expected and global food costs fell to their lowest in two years, raising hopes that prices on market shelves are coming under control. Elsewhere, some observers say the screws might not be tight enough just yet. Mexico’s central bank said it anticipated a prolonged stretch of restrictive monetary policy to get inflation there back to target. Back in the US, the Fed’s coming decision could be seen in terms of the lesser of two evils. “Better to risk a deep economic recession,” Bill Dudley Bloomberg Opinionthan out-of-control inflation.”
Did anyone ” the debt ceiling fight? US President Joe Biden may have come out ahead despite some sniping from the left, given the economic consequences of a default and thus his chances for reelection in 2024. It also burnished his reputation for bipartisan dealmaking, one of the big promises of his 2020 campaign. For his part, Kevin McCarthy declared victory in his effort to force a deal, perhaps cementing his current role with many in his party. However, he was accused by a few of the same far-right Republicans who put him in the Speaker chair of capitulating, and may yet face a leadership challenge. Here’s how the deal came together
