BRICS Expansion, Federal Reserve's Inflation Gauge And Cathie Wood's 2024 Market Outlook: Top Economics Update This Week

The financial world witnessed significant developments this week. While the expansion of the BRICS consortium raised eyebrows regarding the global de-dollarization process, the Federal Reserve’s preferred inflation gauge cooled down, hinting at potential interest rate cuts in 2024. Amid all this, notable economists and financial experts shared their views on the upcoming market trends.

De-dollarization and BRICS Expansion

A former U.S. State Department official, Thomas Hill, has raised concerns over the expansion of the BRICS consortium (Brazil, Russia, India, China, South Africa), including the addition of Egypt. Hill voiced his worries about the ongoing global shift away from the U.S. dollar, which could potentially speed up with the inclusion of new members in BRICS. North African nations might become the most aggressive advocates for de-dollarization, he suggested. Read the full article here.

Fed’s Inflation Gauge Cools Down

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, continues to show signs of cooling down, consolidating expectations of interest rate cuts in 2024. Prior to Friday's economic data, speculators had factored in 162 basis points of interest rate cuts in 2024, equating to six 25-basis-point cuts. Read the full article here.

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Concerns Over Premature Rate Cuts

Mohamed El-Erian, economic advisor to Allianz and Gramercy, has expressed concerns about the recent decline in U.S. inflation, warning it could lead to premature rate cuts by the U.S. Federal Reserve. El-Erian emphasized the deceptive interpretation of the significant decline, attributing it to persistently high inflation over two years. Read the full article here.

Schiff Criticizes Fed’s Rate Cut Plans

Prominent economist Peter Schiff has expressed concern over the declining U.S. Dollar Index and the Federal Reserve's plans for interest rate cuts. Schiff highlighted the potential inflationary impact of these rate cuts, especially given the current technical breakdown of the dollar. Read the full article here.

Cathie Wood’s 2024 Market Outlook

ARK Invest CEO Cathie Wood shared her insights on the 2024 market outlook, predicting a deflationary period and expressing optimism for innovation and technological advancements. Wood’s strategy involves pivoting during the anticipated deflationary period to focus heavily on innovation. Read the full article here.

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