Made simple indeed. Great piece! Question: Do you expect the Fed to consider the appreciating Euro and prematurely end the QT and hikes? Europe and the US do have aligned political interests, after all. Continuing this tightening course would continue depreciation of the Euro and certainly upset the Europeans, wouldn’t it?
Or alternatively, the ECB turns to being more aggressive against inflation...
It's unlikely that the Fed will end interest rate hikes anytime soon. Powell and other officials have made it clear that they're determined to get inflation under control, even if that means risking a recession. Additionally, there definitely seems to be mounting pressure for the ECB to curtail their easy-credit approach the European economy and follow the Fed's anti-inflation campaign.
Made simple indeed. Great piece! Question: Do you expect the Fed to consider the appreciating Euro and prematurely end the QT and hikes? Europe and the US do have aligned political interests, after all. Continuing this tightening course would continue depreciation of the Euro and certainly upset the Europeans, wouldn’t it?
Or alternatively, the ECB turns to being more aggressive against inflation...
It's unlikely that the Fed will end interest rate hikes anytime soon. Powell and other officials have made it clear that they're determined to get inflation under control, even if that means risking a recession. Additionally, there definitely seems to be mounting pressure for the ECB to curtail their easy-credit approach the European economy and follow the Fed's anti-inflation campaign.
Appreciate the reply!