ICYMI: Australia has cut its economic forecasts, citing high inflation, slow global growth

AUD/USD soared on the back of the US Federal Open Market Committee (FOMC) decision and Fed Chair Powell's press conference:

• Forexlive Americas FX news wrap: Powell hints at slower pace of rate hikes

Its very much beholden to US developments, but bubbling away in the background are some niggles on the domestic economy.

Australia's Treasurer Jim Chalmers will deliver his first statement on the economic outlook to federal parliament today, Thursday, 28 July 2022, local time.

Chalmers has stressed the hit to households and the economy again and again, labelling inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, interest rates and government debt and the outlook for economic growth confronting:

• “The headwinds our economy is facing – higher inflation at the top of that list, along with slowing global growth – are now reflected in the revised economic outcomes and forecasts,”
• “This has cut half a percentage point from growth for the last financial year, for this financial year, and for next financial year.”
• The new figures show real Gross Domestic Product grew by three-and-three quarter per cent in 2021-22, instead of four-and-a-half per cent as estimated pre-election.
• The forecast for GDP growth in 2022-23 has been revised from three-and-a-half per cent to three per cent.
• Growth is expected to slow further in 2023-24, at two per cent, down from the two-and-a-half per cent previously predicted

Info out overnight via AAP