Isaac Poole, from Oreana Financial Services, discusses the speech made by Jerome Powell on interest rates and the inflation target. Isaac says there isn’t any new revelation but just a reassurance that interest rates are restrictive and that the central bank aims to be data-dependent moving forward.

As for economic indicators, Isaac discusses the importance of the manufacturing PMI data and also touches on job reports and inflation rate data. Isaac anticipates a high probability of the US sliding into recession next year due to restrictive rates, slowing growth, and dropping inflation.

Regarding China’s economic scenario, Isaac says the response from China’s authorities has been underwhelming, and that more action will be needed to reach the 5% growth target. He then talks about the weakening Aussie dollar as a reflection of the slowing Chinese economy and contemplates a potential global recession that could be more painful and protracted than expected.

(Source: Ausbiz)

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