Macro Briefing: 19 June 2023

* US Sec. of State Blinken meets China’s Xi Jinping in effort to reset relations
* Congress may be on a collision course with a gov’t shutdown later this year
* China economic recovery at risk due to property-sector woes
* Some economists expect China’s economy will be flat in second quarter
* Why rising interest rates may not push US economy into recession
* Ford chairman says US not ready to compete with China on electric vehicles
* Assumptions about global economy as a force for growth, prosperity are fraying
* US consumer sentiment remains low but rebounds to 4-month high in June:

Core inflation around the world remains sticky at elevated levels. “The bottom line is that inflation at 5% remains too high, and it is clear that markets are underappreciating the Fed’s commitment to get inflation back to 2%,” says Torsten Slok, chief economist at Apollo Global Management.