International - Financial Times - Credit Squeeze

Policymaker says publishing interest rate forecasts could help to address shortfalls in communication and tackle market volatility

Governor keen to set his own course on interest rate cuts but may find it uncomfortable to move faster than the Fed

Also in this newsletter: UK inflation dips, AI demand hits electricity supplies, the rise of ‘Quit-Tok’

Communication matters precisely because the structural problem between the pair is probably insoluble

Fund also cites concerns over fiscal ‘imbalances’ in UK, China and Italy

Rate of price increases falls below US for first time since 2022

Comments from Federal Reserve chair came after global markets rocked by shifting interest rate expectations

Also in today’s newsletter, Trump’s shrunken campaign base and Ukraine’s lessons for Israel

Trading partners fear factory boom could trigger supply shock after first-quarter data affirms Xi’s industrial strategy

US also to probe Chinese shipbuilding as president’s re-election campaign fights for votes in Pennsylvania

Inflationary pressures are beginning to wane but not all central banks have taken action yet. See how this affects you

And bank earnings

Despite rising prices around the globe, investments made by the world’s richest have grown faster — boosting their wealth

Government-commissioned analysis outlines threats such as a lack of crucial parts and shortage of key skills

Strength of US economy prompts investors to scale back expectations for rate cuts

Chancellor also highlights prospect of interest rate reductions as Tories try to close gap on Labour in polls

How long can the economy last without a recession?

Rich nations need to top up financing for multilateral institutions and initiatives

Fund also upgrades inflation forecasts as strong demand and tight labour market delay possible Fed rate cuts

Short-term performance has been surprisingly good but policymakers are walking on eggshells