Given everything going on, here are a few quick snippets on the latest global economic developments: European Inflation: Headline inflation surprised to the upside, edging up to 2.9% from 2.8% (which was also the consensus forecast). The services sector was a notable contributor to this increase—a development that, all else equal, raises the probability of a September ECB rate hike. Bank of Japan: The BoJ left interest rates unchanged—surprisingly so, in my opinion—though the decision was paired with a hawkish statement. The yen has since weakened beyond 160 per USD. China PMI: Purchasing managers' index data came in softer than expected at 49.2, down from 50.3 last month and below the consensus forecast of 50.0—marking the lowest reading since February. One dynamic to monitor is how much of this slowdown stems from softening exports, given how vital that sector has been in offsetting domestic weakness. Federal Reserve: Two of the three dissenting FOMC members have outlined this morning why they favored a rate hike at Wednesday’s meeting. Cleveland Fed President Beth Hammack offered a particularly notable perspective, emphasizing that inflation isn't just being driven by supply-side bottlenecks, but by demand-side factors as well. #economy #markets #china #inflation #europe #ecb #boj #federalreserve