* US faces government shutdown without new funding deal
* Hurricane Ian batters Cuba; Florida’s west coast is next
* Global economy is slowing more than expected, advises OECD
* China’s economic output expected to lag rest of Asia for first time since 1990
* China’s currency falls to near 14-year low vs. US dollar
* Bank of England says it will ‘not hesitate’ to lift rates despite plunge in pound
* New Boston Fed president: More rate hikes needed to cool inflation
* Growth in Texas factory activity picked up in September
* Wall Street’s ‘fear gauge’, a.k.a. VIX Index, surges to 3-month high
* Chicago Fed Nat’l Activity Index highlights ongoing growth slowdown for US:
Surging US dollar poses increasing risk. “Such US dollar strength has historically led to some kind of financial/economic crisis,” advises Morgan Stanley’s Michael Wilson, chief U.S. equity strategist, in a note sent to clients. “If there was ever a time to be on the lookout for something to break, this would be it.”
US 10-year Treasury yield reaches new 12-year high, driven by expectations that Federal Reserve monetary policy will remain restrictive. “Back-to-back statements from Fed Chair Jerome Powell, first from Jackson Hole and then last week, were clear and unambiguous that the inflation has to be brought under control by any means necessary … finally the market is listening,” says Dean Smith, chief strategist at FolioBeyond.