This podcast episode discusses the global economic outlook for the third quarter of 2024, focusing on key topics such as inflation and central banks. The speakers analyze the temporary nature of inflation and the response of the Federal Reserve. They compare the experiences of the United States and the Euro area and emphasize the stickiness of services inflation. The discussion also covers the responses of central banks, including the Fed, the ECB, and the Bank of Japan. The challenges facing China's economy, particularly deflation and excess capacities, are examined, as well as the policy response to address these challenges. The outlook for European and US growth is also explored, with an emphasis on the recovery in Europe and the solid but slowing growth in the US. The current state of the US economy is analyzed, with a focus on the fading fiscal impulse and the monetary policy drag. The labor market and upcoming data on household spending, inflation, and job gains are identified as important factors in shaping the US economy's trajectory.
