3 things investors should watch for in next week's Federal Budget

Amid the wild gyrations in interest rate expectations, the geopolitical risks that continue to build, and the slew of earnings releases, it can be easy to forget there is a Federal Budget next week. While this one is likely to deliver another Budget surplus, questions are being asked about how much the Albanese/Chalmers administration will spend and if the cash splash will be beyond our limits. 

The Budget will also be delivered amid a much more volatile and challenging global backdrop. Stagflation fears have returned to the US, and interest rate expectations have moved dramatically in just the last few weeks alone, proving the "last mile" to get inflation down is harder than expected.

Ahead of the next edition of Livewire's Signal or Noise, three of Australia's most influential market economists are sitting down for a classic Rapid Fire to preview the key policy issues we will be discussing on the main show. 

The panel for the upcoming episode is:

• Diana Mousina, AMP Deputy Chief Economist and series regular
• Luci Ellis, Westpac Chief Economist and ex-RBA Chief Economist
• Johnathan McMenamin, Barrenjoey senior economist

Topics discussed:

• Australian inflation marginally beat economist expectations
• Rates pricing has unwound from a 50% chance of an RBA rate hike by August 2024 to a cut by August 2025 in just two weeks
• The CNN Fear and Greed Index has moved from a reading of 67 (greed) to a recent low of 32 (substantial fear) because of stagflation concerns
• The Federal Budget is likely to record a surplus for a third consecutive year
• What is one thing you will be watching out for in next week's Budget?