Daily update
Daily update
- US Republican senators’ concerns over the criminal investigation of the Federal Reserve might delay the confirmation of the next Fed Chair. Any nominee from US President Trump is also likely to have to place additional emphasis on their independence to try and prove they are above politics. This might impact future policy decisions.
- Trump posted on social media that US companies importing goods from countries that do business with Iran would have to pay an extra 25%. If taken at face value, that includes China, India, the EU, and Turkey. Markets do not appear to be taking this post seriously, but it is another instance of unpredictability in policy that adds a risk premium for US companies.
- US December consumer price inflation is expected to edge higher. Data collection remains poor (the BLS collects fewer prices from fewer cities, and guesses at more prices than normal). The shutdown effects suppressed some price inflation in November, and that should disappear this month. In the affordability narrative, food and increasingly also electricity pricing are likely to be a focus.
- UK BRC December retail sales grew 1% that does not fully capture online sales, or spending on having fun. Food retailers’ willingness to raise prices ensured higher values for food sales.