Weekly Briefing: Key Policy Developments
This weekly briefing provides overviews of the top policy developments that business leaders should monitor.
Some significant developments of the first week of 2024:
Chinese leader Xi Jinping warns of ongoing economic challenges: Xi cautioned the Chinese to be ready for economic challenges in his New Year message, while promising efforts to increase growth and address concerns. “On the path ahead, winds and rains are the norm,” Xi said. “Some companies are facing business pressures; some people are running into difficulties finding jobs and in their daily living.” (WSJ) He also stated that “reunification” with Taiwan is inevitable.
Biden administration sues Texas over deportations: The U.S. is suing Texas over a new law that allows police anywhere in Texas to arrest migrants who enter the U.S. illegally and gives judges the authority to order migrants to leave the country. Justice Department asked a federal court to declare the Texas law an unconstitutional violation of the Supremacy Clause.
Fed minutes point to lower inflation and end of rate hikes: The minutes of the Federal Reserve meeting on December 12-13 meeting indicated concerns about high interest rates. The discussion indicates that Federal Reserve officials are finished raising interest rates but did not point to when to start lowering them.
Additional reading
Xi Jinping Faces an Economic Test of Will in 2024 (WSJ)
China’s Xi Is Resurrecting Mao’s ‘Continuous Revolution’ With a Twist (WSJ)
Israel Reshuffles Forces, Prepares for Long-Term Conflict in Gaza (WSJ)
Shale Is Keeping the World Awash With Oil as Conflicts Abound (WSJ)
Markets think interest rates could stay high for a decade or more (Economist)
California’s Environmental Regulations Take a $4 Billion Bite Out of Chevron (MSN)
Political and Economic Risk Outlooks for 2024
Geopolitical
Economic
Allianz: 2024: A year of political turmoil and economic uncertainty
Bertelsmann Stiftung: European Economic Outlook 2024 – Slow Recovery with Geopolitical Risks
J.P. Morgan: Market outlook for 2024: Slow global growth clouds forecast for equities
ICG: Outlook 2024: A resilient global economy – but geopolitical risks abound