GBP – The British pound weakened on Wednesday as data showed inflation climbed to its highest level in more than four decades in July, heaping pressure on the Bank of England to bring down prices but increasing the risk of a sharper economic slowdown.
FOMC – According to the Fed’s July minutes, officials saw “little evidence” that inflation pressures were easing and are beginning to brace themselves to force the economy to slow down control the ongoing surge in prices.
Additionally, although the Fed never explicitly hinted at a particular pace of future rate hikes, the minutes imply that central bank policymakers are committed to raising rates as high as necessary to tame inflation. This is despite acknowledging the growing risk that they could eventually go too far and curb economic activity.
FOMC – According to the Fed’s July minutes, officials saw “little evidence” that inflation pressures were easing and are beginning to brace themselves to force the economy to slow down control the ongoing surge in prices.
Additionally, although the Fed never explicitly hinted at a particular pace of future rate hikes, the minutes imply that central bank policymakers are committed to raising rates as high as necessary to tame inflation. This is despite acknowledging the growing risk that they could eventually go too far and curb economic activity.