serendipity
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Very worrying to say the least, sounds like a return to the Volcker era.
The Federal Reserve now has no choice but to push the US into a downturn in order to bring down inflation, according to TD Securities strategist Priya Misra.
In an interview with CNBC on Friday, Misra warned that the economy could tip into a downturn by mid-year due to the threat of rising interest rates. Already, central bankers have raised rates 450 basis-points over the last year to take down inflation, a move that threatens to overtighten the economy into a downturn, experts warn.
"I think the Fed has no choice but to engineer a hard landing," she warned. "I think the Fed is going to feel that pressure to continue to hike."
Data is likely to keep coming in hot because Fed rate hikes work with a lag, and it takes 12-18 months for the full effect of Fed tightening to be felt in the economy, Misra said. She estimated that rates had already reached a restrictive level in December, though central bankers have cited a still-hot economy as a reason why interest rates need to move higher.
https://markets.businessinsider.com...d-landing-fed-inflation-interest-rates-2023-3
The Federal Reserve now has no choice but to push the US into a downturn in order to bring down inflation, according to TD Securities strategist Priya Misra.
In an interview with CNBC on Friday, Misra warned that the economy could tip into a downturn by mid-year due to the threat of rising interest rates. Already, central bankers have raised rates 450 basis-points over the last year to take down inflation, a move that threatens to overtighten the economy into a downturn, experts warn.
"I think the Fed has no choice but to engineer a hard landing," she warned. "I think the Fed is going to feel that pressure to continue to hike."
Data is likely to keep coming in hot because Fed rate hikes work with a lag, and it takes 12-18 months for the full effect of Fed tightening to be felt in the economy, Misra said. She estimated that rates had already reached a restrictive level in December, though central bankers have cited a still-hot economy as a reason why interest rates need to move higher.
https://markets.businessinsider.com...d-landing-fed-inflation-interest-rates-2023-3