* Will UK Prime Minister Liz Truss’s economic gamble sink her goverment?
* IMF urges UK to ‘reevaluate’ tax cuts amid inflation concerns
* Hurricane Ian threatens to be one of the costliest storms in US history
* Sabotage is suspected in leaking Russian gas lines to Europe
* China’s current falls to record low against US dollar
* US core durable goods orders continued rising in August
* US home prices eased in July at fastest rate in history of S&P Case-Shiller Index
* New home sales in US rebounded in August, rising nearly 29% vs. July
* San Francisco Fed president: central bank doesn’t intend to tip US into recession
* US Consumer Confidence Index rose for a second month in September:
Americans’ wealth has fallen $9 trillion due to stock market losses and the blowback may start rippling through the economy. “The loss of stock wealth suffered to date, if sustained, will be a small, but meaningful headwind to consumer spending and economic growth in coming months,” says Mark Zandi, chief economist of Moody’s Analytics. He reports that the losses could trim real GDP growth by nearly 0.2 percentage point in the year ahead.
Economists predict Federal Reserve will hike its key interest rate to a much higher peak vs. forecast from two weeks ago, according to a new poll from Reuters. “With inflation this high, history says you need to get at it sooner and you need to follow through. The real policy mistake is not bringing inflation back down to 2%,” says Michael Gapen, chief US economist at BofA Securities. “If a near-term recession and a larger increase in the unemployment rate than they are projecting are needed to bring inflation down, that is not a policy error in their mind.”