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

Neal Kimberley
Neal Kimberley

Updated: 2:13am, 8 Dec, 2021

Why you can trust SCMP
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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