After The Fed's cocaine bear interest rate pivot last week, central bankers all over the world are turning to rate cuts like lemmings off a cliff. In fact, Bank of America's Michael Hartnett now predicts 152 rate cuts in the coming year. This is a problem given inflation's continuing across the major economies, with the Economist pegging final 2023 numbers at 4.1% for the US, 5.5% for the Euro area, and 6.8% for Britain. Even Japan is at 3.2%, which is way above their target after literally decades of structural deflation.
Central Bankers Choose Inflation
Central Bankers Choose Inflation
Central Bankers Choose Inflation
After The Fed's cocaine bear interest rate pivot last week, central bankers all over the world are turning to rate cuts like lemmings off a cliff. In fact, Bank of America's Michael Hartnett now predicts 152 rate cuts in the coming year. This is a problem given inflation's continuing across the major economies, with the Economist pegging final 2023 numbers at 4.1% for the US, 5.5% for the Euro area, and 6.8% for Britain. Even Japan is at 3.2%, which is way above their target after literally decades of structural deflation.