Point of View
See all Point of View in our Library
Flash Report January 2019

The big news was that the tension between tightening financial conditions and slowing growth was addressed, for the time being, by Chairman Powell's announcement that the Fed would pause its rate hikes and "adjust" its pace of quantitative tightening. The Fed reasonably caved to the needs of global growth, implicitly acknowledging by its reduced estimate of the natural rate of interest that it had already tightened too much. Risk assets surged and will continue to increase until markets come to grips with why the Fed capitulated.

WRITTEN BY | February 1, 2019

Download Flash Report Here