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In the News

19 September 2019   |  

Another busy day in monetary policy and macroeconomic news. Here’s a handful of the headlines that caught our interest.

Fed Cuts Rates by Quarter Point but Faces Growing Split
As broadly expected. Markets didn’t seem much pleased by the announcement either.

Fed Sees Huge Demand for Cash After Money Market Jolt
The US Fed’s efforts to stabilize the cash market continue: “The Federal Reserve Bank of New York will inject a further $75bn into the US financial system on Thursday morning, in its third attempt to steady one of the world’s most important money markets.”

India Slashes Corporate Taxes to Give a Boost to Economy
Corporate tax rates will be at “the lowest levels in India’s post-independence history”—bringing the country nearer its EM peers and improving competitiveness. If the government next turns its attention to paring the bureaucracy and cutting some red tape, India may successfully jump-start its economy.

World Economy to Grow at Lowest Rate Since Financial Crisis
Surely China’s slowing growth is weighing on the global growth number, and naturally everyone would prefer more, faster growth. But it’s worth noting that 2.9% global growth (or whatever the actual number proves to be) on some $80 trillion of global output is a tremendous amount of growth.

To Keep Exports Flowing, Saudi Arabia Looks to Import Oil
Saudi Arabia’s largest oil facility was hit on September 14, temporarily knocking out some 5% of global oil supply and contributing to spiking oil prices. While it likely takes a bit for Saudi Arabia to get its oil industry back on its feet, global producers in the US may help fill the temporary supply dip—thanks to two newly finished pipelines, which will carry light crude from the Permian in Texas and New Mexico to Gulf Coast ports from whence it can be exported.

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