If you've been following along with me for the past 20 months, you'll note that I have been fairly pessimistic about the ability of central banks to actually bring down inflation, despite the steady base interest rate increases.
However, as of yesterday, it appears the inflation rate is breaking in the US. It's down to 3% as of June, which is the lowest rate it has been in the US since June (according to the FT). This suggests that the Federal Reserve's efforts to slash inflation through rate hikes is working.
A question for the community (and one I have not researched myself), is why the US seems to be doing better than the UK? We touched on this during yesterday evening's first TCLA Office Hours. But I think this will become a very salient talking point in the coming weeks: why is inflation falling in the US (and the EU to a lesser extent), but not the UK? What structural factors are causing this (e.g., things like unemployment rates, trade policies, fiscal [tax] policies, etc.)? What does this mean for commercial clients? What does this mean for law firms?
However, as of yesterday, it appears the inflation rate is breaking in the US. It's down to 3% as of June, which is the lowest rate it has been in the US since June (according to the FT). This suggests that the Federal Reserve's efforts to slash inflation through rate hikes is working.
A question for the community (and one I have not researched myself), is why the US seems to be doing better than the UK? We touched on this during yesterday evening's first TCLA Office Hours. But I think this will become a very salient talking point in the coming weeks: why is inflation falling in the US (and the EU to a lesser extent), but not the UK? What structural factors are causing this (e.g., things like unemployment rates, trade policies, fiscal [tax] policies, etc.)? What does this mean for commercial clients? What does this mean for law firms?
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