The Wall Street Journal (WSJ) highlights key points from the Reserve Bank of Australia (RBA) Governor Lowe’s testimony delivered in the country’s parliament earlier today, which underscores concerns that the RBA is uncomfortable about the US fiscal stimulus.
Key Quotes:
“The RBA was becoming increasingly uneasy about the potential for inflation to jump in the U.S., fanned by the country’s “problematic” fiscal expansion.”
“It is the time of the cycle that should be back to budget balance…building insurance”¦ said the U.S. was doing exactly the opposite.”
“One can’t rule out the possibility that the Federal Reserve will have to withdraw monetary accommodation more quickly than currently projected, with possible disruptive consequences in financial markets.”
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