1.0Verbank Advisors & Agriculturehttps://verbank.luverbankfarmshttps://verbank.lu/author/verbankfarms/rich600338<blockquote class="wp-embedded-content"><a href="https://verbank.lu/november132017/">US + Brazil Financial News (11/13)</a></blockquote> <script type='text/javascript'> <!--//--><![CDATA[//><!-- /*! This file is auto-generated */ !function(c,d){"use strict";var e=!1,n=!1;if(d.querySelector)if(c.addEventListener)e=!0;if(c.wp=c.wp||{},!c.wp.receiveEmbedMessage)if(c.wp.receiveEmbedMessage=function(e){var t=e.data;if(t)if(t.secret||t.message||t.value)if(!/[^a-zA-Z0-9]/.test(t.secret)){for(var r,a,i,s=d.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),n=d.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),o=0;o<n.length;o++)n[o].style.display="none";for(o=0;o<s.length;o++)if(r=s[o],e.source===r.contentWindow){if(r.removeAttribute("style"),"height"===t.message){if(1e3<(i=parseInt(t.value,10)))i=1e3;else if(~~i<200)i=200;r.height=i}if("link"===t.message)if(a=d.createElement("a"),i=d.createElement("a"),a.href=r.getAttribute("src"),i.href=t.value,i.host===a.host)if(d.activeElement===r)c.top.location.href=t.value}}},e)c.addEventListener("message",c.wp.receiveEmbedMessage,!1),d.addEventListener("DOMContentLoaded",t,!1),c.addEventListener("load",t,!1);function t(){if(!n){n=!0;for(var e,t,r=-1!==navigator.appVersion.indexOf("MSIE 10"),a=!!navigator.userAgent.match(/Trident.*rv:11\./),i=d.querySelectorAll("iframe.wp-embedded-content"),s=0;s<i.length;s++){if(!(e=i[s]).getAttribute("data-secret"))t=Math.random().toString(36).substr(2,10),e.src+="#?secret="+t,e.setAttribute("data-secret",t);if(r||a)(t=e.cloneNode(!0)).removeAttribute("security"),e.parentNode.replaceChild(t,e)}}}}(window,document); //--><!]]> </script><iframe sandbox="allow-scripts" security="restricted" src="https://verbank.lu/november132017/embed/" width="600" height="338" title="“US + Brazil Financial News (11/13)” — Verbank Advisors & Agriculture" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe>UNITED STATES   The downturn in US core inflation in 2017 continues to trouble markets and likely accounts for a major part of the discrepancy between the market’s forecast of future policy rates and the Fed’s own forecasts, which are significantly higher. The October reading, out this Wednesday, is the last one before the next FOMC meeting on December 12-13, two days before the November CPI release. Abstracting from the headline, that for energy-related reasons could dip down in October, core inflation is expected to hold steady and return to 0.2%momsa or 1.7%yoy. The issue, of course, is that this is low, too low some may argue for a central bank bent on normalizing interest rates, suggesting it will deliver 100bp of hikes over the next 12mo, approximately. And the related question is, is there something fundamentally different with today’s inflation? Extending further to the equally surprising low rate of wage gains in an economy already at full employment, is there something fundamentally different between the relationship between output and prices, wages and employment, that guides monetary policy? Many have looked at these issues recently and, contrary to the crusaders who want to throw away the economics textbooks, they find sensible […]