US inflationary pressures to moderate? - ANZ

Analysts at Nomura argued that US inflation pressures may be moderate.

Key Quotes:

"...but that benefits the consumer whilst healthy growth in private consumption and the labour market imply that US activity is currently running above estimates of trend or potential growth (1.5-1.8%).

The majority of the FOMC are of the view that as long as that remains the case, underlying inflation pressures will gradually intensify and therefore further policy normalisation is appropriate.

The second quarter saw market price action reflect greater synchronisation in geographical business cycles, but the early Q3 data has served as a reminder that the US expansion is robust. There is scant evidence of late cycle fatigue for now."