The Week That Will Be (8th May 2022)

1. Inflation
Once again it's the Chinese inflation numbers on Wednesday that matter more than the US release later the same day. The rise in Chinese producer prices has moderated over the past few months but it is difficult to imagine that will persist given the extent of Chinese lockdowns.

Not that the US number really matters much to the Fed in the short term. They are belatedly scrabbling to deal with the inflation numbers of the past few months whilst getting the rate hikes in ahead of the mid-term elections. At the FOMC . . .

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