FT News Briefing Inflation, inflation, inflation
Sep 29, 2021
Rising inflation is stirring political debates in the U.S. as midterm elections approach, with Republicans blaming Democratic spending. The stock market feels the pressure from soaring interest rates, particularly hitting tech stocks hard. Meanwhile, oil prices have surged above $80 a barrel, complicating economic forecasts. In China, a crackdown on cryptocurrency trading is forcing exchanges to adjust strategies amidst increased regulatory scrutiny. The podcast dives into these pressing financial topics, providing insights into their wide-ranging impacts.
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Inflation as a Political Weapon
- Inflation and rising interest rates are impacting markets and US politics.
- Republicans are using inflation as a political weapon against Democrats' spending plans.
Market Impact of Inflation and Interest Rates
- Looming higher interest rates are causing investors to sell government bonds and reposition for hawkish central bank policy.
- Tech stocks were hit hardest due to their valuations being tied to future growth, which is impacted by higher inflation.
Energy Prices and Inflation
- Rising energy prices are further fueling inflation fears, with Brent Crude rising above $80 a barrel.
- Supply constraints and global economic recovery are driving up energy costs like natural gas, impacting consumers and governments.