The Effects of Monetary Policy Tightening on the Real Economy

The Fed are likely to hike one more time to take policy rates of 5.5%. I would say, we'll probably look back at this and think 5.25, which is where we are right now. We were already at very restrictive policy rates and the Fed overdid it. And that's where markets in the next coming months will focus more and more on that actually those last remaining few rate hikes were not necessarily needed. Those will have to be priced out of the market,. will have to look at doing a U-turn and or changing course on balance expansion on QT.