Unlock the Editor’s Digest totally free
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Fears over a looming US recession triggered a pointy drop in world markets this week, however many economists think those fears are overblown.
The sell-off mirrored worries that the US Federal Reserve has been too sluggish to chop rates of interest from their present 23-year excessive, amid indicators that the world’s largest financial system is faltering. However most economists suppose markets had been overreacting, with the US nonetheless on track for a so-called gentle touchdown, the place inflation falls again to the Fed’s 2 per cent objective with no sharp rise in unemployment.
Friday’s jobs report confirmed the fourth consecutive month-to-month rise within the unemployment charge to 4.3 per cent. But Fed officers have mentioned this determine stays low by historic requirements, suggesting the central financial institution is much less alarmed by the state of the labour market than traders.
Do you suppose the US is heading for a recession? Inform us your view by voting in our ballot or commenting under the road.