Posted 11/12/2023, 10:05:10 AM
China's Return to Deflation Rattles Global Markets, Sparking Concerns of Repeat of 1990s Japan
- China's return to deflation raises concerns, with parallels to Japan's experience in the 1990s.
- The specter of Chinese economic weakness looms over the upcoming APEC summit, reminiscent of 1997.
- Fed Chair Jerome Powell must weigh rate hikes against potential fallout for China's economy.
- Further yuan depreciation could exacerbate China's property crisis and hurt global growth.
- Powell should closely monitor China's economy, as turmoil there would impact the U.S.