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[Quick Facts]

1. Lagarde doesn't give views on the coming rate decision.

2. Wage growth becomes a big concern for BOE as the job market cools.

3. 73% of voters think Biden is too old to run for re-election.

4. Three factors explain why the U.S. economy keeps defying predictions of recession.

[News Details]

Lagarde doesn't give views on the coming rate decision

European Central Bank (ECB) President Christine Lagarde maintained the suspense of "whether to raise rates next week" in her latest speech, and she spent more time on communication.

President Lagarde said the ECB took the environment of fragmented communication and declining trust extremely seriously. Conveying our policy messages to the wider public is critical for the legitimacy of independent central banks in democratic societies and for the effectiveness of monetary policy, Lagarde said. High inflation and high levels of attention on inflation present require us to seize the moment in communicating more effectively. Effective communication will help ensure that medium-term inflation expectations remain anchored during the process of fighting against inflation. While inflation is now falling, effective communication is likely to remain of paramount importance even after the current inflation spike is over.

Wage growth becomes a big concern for BOE as the job market cools

Headline inflation in the UK is falling, but the real headache for the Bank of England (BOE) is the job market. While there are clear signs that we have passed the peak of tightening last summer, the labor market has not cooled as quickly as the central bank had hoped. In line with this, pay growth in the private sector has climbed to a record high, increasing the risk that inflation will stabilize above the target in the medium term.

The BOE has made it clear that it would rather do too much than too little. This means the bank will raise interest rates to 5.75% in November. And there will be little chance of a rate cut in 2024 as the central bank puts pressure on underlying costs.

73% of voters think Biden is too old to run for re-election

The Wall Street Journal survey of 1,500 registered voters, conducted on Aug. 24-30, suggests that these key concerns may be responsible for Biden's approval rating falling to 42%, compared with a disapproval rating of about 57%. Nearly three-quarters or 73% of respondents said they believe Biden is too old to run for president.

The economy is a top consideration for the 2024 presidential election, but once again they overwhelmingly said the U.S. is headed in the wrong direction.

Three factors explain why the U.S. economy keeps defying predictions of recession

Stable employment and strong consumer spending provide the latest evidence that the impact of the COVID-19 pandemic and the U.S. government's unprecedented stimulus policies have made the economy surprisingly resilient in the face of high interest rates, said Nick Timiraos, chief economics correspondent for The Wall Street Journal.

Three factors explain why the U.S. economy keeps defying predictions of recession, said Timiraos.

First, a growing workforce and slower price increases boosted Americans' inflation-adjusted "real" incomes this year, spurring more hiring and spending.

Second, the unusual COVID-19 pandemic distorted consumption patterns, leading to shortages of goods, housing, and workers, which has created enormous pent-up demand that is now less sensitive to interest rate hikes.

Third, the government initially injected large amounts of cash into the economy and kept interest rates at rock-bottom levels, allowing businesses and consumers to lock in lower borrowing costs. Subsequent legislation, including the Inflation Reduction Act and the $53 billion CHIPS and Science Act, further increased federal spending and spurred additional private-sector investment in manufacturing.

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