Property prices in the UK and the US have risen sharply, The U.S. Federal Reserve decides to adopt a new average inflation target framework
Property prices in the UK and the US have risen sharply
According to the latest figures from the British mortgage company Halifax, the average house price in the UK in September rose 5.2% and 7.3% month-on-year respectively. In fact, the sharp rise in property prices is not only happening in the United Kingdom, but also in the United States. At the end of last month, the United States announced that the average second-hand property price in August increased by 11.4% year-on-years. Affected by the epidemic, the economies of the United Kingdom and the United States have experienced serious recessions, and unemployment rates have risen sharply. However, property prices in both places have performed well. Obviously, this is related to the large-scale printing of money by global central banks after the epidemic, which drove funds to pursue properties for value preservation.
The U.S. Federal Reserve decides to adopt a new average inflation target framework
The U.S. Federal Reserve released the record of last month's interest rate discussions, showing that most of the decision-making committees agreed to adopt the new average inflation target framework. And if the future fiscal stimulus is significantly lower than expected, or is launched later, the pace of economic recovery may be slower than expected. However, some members are concerned that the highly accommodative financial market environment may exacerbate financial imbalances. Therefore, it is necessary to further evaluate and communicate how asset purchases can better support the realization of the goals. In addition, the bureau pointed out that if the new coronavirus-type epidemic worsens, it will pose a risk to the prospects for economic recovery. The minutes of the meeting suggest that the bureau may discuss adjustments or expansion of quantitative easing policies in the short term.
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According to the latest figures from the British mortgage company Halifax, the average house price in the UK in September rose 5.2% and 7.3% month-on-year respectively. In fact, the sharp rise in property prices is not only happening in the United Kingdom, but also in the United States. At the end of last month, the United States announced that the average second-hand property price in August increased by 11.4% year-on-years. Affected by the epidemic, the economies of the United Kingdom and the United States have experienced serious recessions, and unemployment rates have risen sharply. However, property prices in both places have performed well. Obviously, this is related to the large-scale printing of money by global central banks after the epidemic, which drove funds to pursue properties for value preservation.
The U.S. Federal Reserve decides to adopt a new average inflation target framework
The U.S. Federal Reserve released the record of last month's interest rate discussions, showing that most of the decision-making committees agreed to adopt the new average inflation target framework. And if the future fiscal stimulus is significantly lower than expected, or is launched later, the pace of economic recovery may be slower than expected. However, some members are concerned that the highly accommodative financial market environment may exacerbate financial imbalances. Therefore, it is necessary to further evaluate and communicate how asset purchases can better support the realization of the goals. In addition, the bureau pointed out that if the new coronavirus-type epidemic worsens, it will pose a risk to the prospects for economic recovery. The minutes of the meeting suggest that the bureau may discuss adjustments or expansion of quantitative easing policies in the short term.
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Z. com Bullion is an affiliate of GMO Financial Holdings, Inc., a Japanese listed group. The risk of loss in leveraged foreign exchange trading & margin trading can be substantial. Visit the company website to read full risk warning. https://bullion.z.com/en/about/legal/risk/
