- Hawkish sentiment in the US and more easing in China could leave policymakers in Asia-Pacific countries exposed to both in a difficult spot
- For currency investors who are adept at reflecting changing circumstances and identifying value, though, this divergence spells opportunity
Students 'spoon-fed'
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US Federal Reserve
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Most teachers are spoon-feeding students in liberal studies classes, although this is discouraged, a University of Hong Kong study has found. Teachers are relying heavily on textbooks, despite guidelines that they should not do so.
Student Theodora Yu, 18, often engages in lively debates on topical issues in class. She thinks she learned more through exchanging ideas than through textbooks - which only covered a small part of the subject. 'While textbooks help explain fundamental concepts, discussions allowed us to analyse social problems critically and from multiple perspectives,' Yu says.
Gabrielle Chan, 17, agrees that a reliance on textbooks destroys the essence of the subject.
A worker organises food at the West Alabama Food Bank in Northport, Alabama, on March 28. Inflation is driving up operating costs for food banks and pantries across the US and forcing them to ration their aid, but there are fears the Federal Reserve’s attempts to rein in inflation could lead to a recession. Photo: Bloomberg
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Opinion
Macroscope
Is the US heading for a recession? There’s more to it than an inverted yield curve
- Some investors fear the US economy is stalling, which could see the end of the equity market bull run
- However, not only are there doubts about the yield curve’s ability to accurately predict a downturn, other indicators that monitor US recession risk remain healthy
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A worker organises food at the West Alabama Food Bank in Northport, Alabama, on March 28. Inflation is driving up operating costs for food banks and pantries across the US and forcing them to ration their aid, but there are fears the Federal Reserve’s attempts to rein in inflation could lead to a recession. Photo: Bloomberg
The US Federal Reserve increased interest rates at its March Federal Open Market Committee meeting, as well as its forecasts for inflation and policy rates. Senior officials have, since then, indicated that the focus will be on tackling inflation.
The market now expects a 50 basis point rate increase at the Fed’s next meeting in early May. This has heightened market concerns that aggressive policy tightening will not only reduce inflation but also economic growth.
The US Treasury yield curve has flattened significantly. By early April, the two-year bond yield was higher than the 10-year yield, a phenomenon known as an inverted yield curve. Historically, investors have seen this as a warning sign of slowing growth or even recession.
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