With less than a fortnight until Jim Chalmers delivers his first Budget, we look at how the deteriorating global financial situation is affecting the Australian economy and the budget outlook. Dr Chalmers is in Washington meeting global financial leaders, with discussions dominated by stubborn inflation, particularly after data was released overnight showing that core inflation in the US hit 40-year highs in September. That sparked fears of more aggressive rate rises by the US Federal Reserve which in turn raises the prospects of higher interest rates in Australia.