Macro Briefing: 8 August 2022

* Senate passes ambitious health care and climate bill
* China announces more military drills around Taiwan
* China’s trade surplus reaches record high in July
* UN chief condemns “suicidal” shelling around Ukrainian nuclear plant
* SF Fed president says Fed is “far from done” with rate hikes
* The world’s first climate-induced famine torments Madagascar
* US payrolls rose sharply in July, far above expectations
* US 10yr Treasury yield rose last week — first increase in four weeks:

US inflation is expected to ease in this week’s release (Wed., Aug. 10) of consumer prices in July, according to Bloomberg economists:

Economic “distress” may be the only solution for taming inflation, predicts former Treasury Secretary Larry Summers: “Unless we have a set of very surprising and positive developments, we’re not likely to see the inflation rate come all the way down to [the Fed’s] target without there being some level of meaningful economic distress.”