Macro Briefing: 14 November 2022

* Dems hold the Senate as House control remains unclear
* Democrats say they’ll address US debt ceiling limit in coming weeks
* Fed’s Waller: “We’ve still got a ways to go” before pausing rate hikes, he says
* Biden meets President Xi and aim to ‘manage out differences’
* FTX collapse prompts rethink for crypto’s role in asset allocation
* Is de-growth the best way to address climate change?
* Pandemic housing bubble is bursting, says chief economist at KPMG.
* Small farmers priced out of market as farmland values reach record highs
* Eurozone industrial production is surprisingly strong in October
* US Dollar Index fell to 3-month low on Friday:

Despite softer consumer inflation data for October, it’s premature to assume that a soft economic landing is the odds-on favorite as inflation-taming efforts continue, says Kelsey Berro, a fixed-income portfolio manager at JPMorgan Asset Management. “The path to a soft landing where the Federal Reserve is able to bring inflation all the way back down to target without causing material economic damage is still narrow. While the direction of travel for inflation should be lower, the pace of deceleration and the ultimate leveling off point remain highly uncertain.”

Global housing markets expected to suffer a brutal slowdown. The International Monetary Funds warns that the market is at a “tipping point” via Financial Times. “As central banks around the globe aggressively tighten monetary policy to tackle price pressures, soaring borrowing costs and tighter lending standards, coupled with stretched house valuations, could lead to a sharp decline in house prices,” advises an IMF report.

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