US Federal Reserve chairman Jerome Powell (left) and Treasury Secretary Janet Yellen listen during a House Financial Committee hearing in Washington on December 1. Stocks slid, short-term interest rates rose and measures of equity volatility surged after Powell warned Congress that rising inflation could justify ending asset purchases sooner than planned. Photo: Bloomberg
US Federal Reserve chairman Jerome Powell (left) and Treasury Secretary Janet Yellen listen during a House Financial Committee hearing in Washington on December 1. Stocks slid, short-term interest rates rose and measures of equity volatility surged after Powell warned Congress that rising inflation could justify ending asset purchases sooner than planned. Photo: Bloomberg
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

How US-China monetary policy split could drive dollar gains against the yuan

  • While the US central bank is waking up to the need to respond to rising inflation, China looks set to stick with supportive monetary policy
  • If this divergence continues, it could erode the yield differential that currently favours the renminbi over the US dollar

US Federal Reserve chairman Jerome Powell (left) and Treasury Secretary Janet Yellen listen during a House Financial Committee hearing in Washington on December 1. Stocks slid, short-term interest rates rose and measures of equity volatility surged after Powell warned Congress that rising inflation could justify ending asset purchases sooner than planned. Photo: Bloomberg
US Federal Reserve chairman Jerome Powell (left) and Treasury Secretary Janet Yellen listen during a House Financial Committee hearing in Washington on December 1. Stocks slid, short-term interest rates rose and measures of equity volatility surged after Powell warned Congress that rising inflation could justify ending asset purchases sooner than planned. Photo: Bloomberg
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