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Democrats pivot to fiscal tightening

Alongside Pelosi's visit to Taiwan this week, the recently-passed Chips and Science Act is another illustration of the slow-motion decoupling that is developing between the US and China. The modest fiscal stimulus incorporated into the semiconductor bill should be more than offset by the net fiscal tightening incorporated into the inflation reduction reconciliation bill that should now be passed shortly.
CPI Drop-In (10th Aug): Will July finally mark the turning point for US inflation? Join our US Economics team for a briefing shortly after the CPI release for a briefing on the inflation outlook and the Fed response. Register now.  

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