New regulations in China, rising inflationary pressures, the EU energy crisis, a new commodity cycle, a tightening of the Fed’s monetary policy and possible interest rate hikes in the third quarter are of concern to investors. Is it time to change the course? More in our report.
Q3 2021 Highlights:
- New regulatory measures in China that tighten the business environment in the internet and education sectors have brought uncertainty to global markets. The Chinese Communist Party continues to strengthen its power and influence. We looked at how the new regulations will manifest themselves in the environment of individual segments of the Chinese economy.
- During the quarter, the Office of Economic Analysis predicted U.S. GDP growth of +6.3%. Forecasts suggest a slight slowdown in U.S. economic growth in Q3, largely due to concerns about an ongoing global pandemics.
- The most important monetary policy event in Q3 was the FOMC meeting in September. The outcome of the meeting is a change in the chronological framework for tightening expansionary monetary policy. How this change will affect the purchase of government bonds (QE) and interest rate?
