Bundesbank said in the monthly report that inflation rate will rise to “just under 6 percent in November”. Inflation is expected to “decline noticeably in January when statistical special effects (especially the VAT base effect) expire. “But it could still be well over 3 percent for a long time,” it added.
It also expects “a breather in the economic recovery” in autumn. Industrial is likely to “continue to be burdened by delivery problems”, and thus, “dampen overall economic growth”. Risks from an intensified pandemic would exist throughout the winter half-year. “As things stand at present, the macroeconomic effects are likely to be less severe than in previous pandemic waves,” it said.
S&P 500 and NASDAQ hit new records as Fed Powell nominated for second term
Fed Chair Jerome Powell was nominated for a second four-year term by President Joe Biden, as announced today. Governor Lael Brainard is nominated as Vice Chair.
In a statement, Biden said, “fundamentally, if we want to continue to build on the economic success of this year we need stability and independence at the Federal Reserve – and I have full confidence after their trial by fire over the last 20 months that Chair Powell and Dr. Brainard will provide the strong leadership our country needs.”
Investors appear to welcome the decision, as S&P 500 and NASDAQ are hitting new record highs. S&P 500 is now on track to 38.2% projection of 3233.94 to 4545.85 from 4278.94 at 5089.69.
NASDAQ is also on track to 100% projection of 13002.53 to 15403.43 from 14181.69 at 16582.59.