Your Sunday Asia Briefing: the Fed, the Squid and the King
Squid Game actress Hoyeon Jung leads Louis Vuitton’s fashion parade on Seoul’s Jamsugyo bridge.
Photographer: Jean Chung/BloombergAre we there yet? This week could finally see the peak of the US interest-rate mountain and, fingers crossed, the last fire-sale for a US bank in the latest crisis. Yet manufacturing data from China suggests the global recovery still has a long way to go.
The big peak: The Fed will announce its latest rate decision on May 3, with most economists expecting a final 25-basis-point hike for this cycle. But with inflation still running at more than double the central bank’s 2% target, it may be next year before rates start coming down again. The following day, the European Central Bank will also probably add a quarter point, assuming inflation data on May 2 isn’t unexpectedly strong. The US April employment report is expected to show a payroll gain of about 180,000, less than the prior month, with unemployment at around 3.6%.