The Fed is Sticking to Higher for Longer
Real Vision: Finance & Investing
00:00
What Do You Think About US Inflation?
Dariusz Kowalczyk: I think they're aiming for 4.7 now in the base case, basically more than a percentage point higher than today. So pairing such an unemployment forecast with continued interest rate hikes, what does that cocktail tell you? Well, it tells you that they want a deep recession. The 400 PhDs at FOMC can figure that out and they are effectively implicitly forecast the recession vis-a-vis the labor market irrespective of the fact that their growth forecasts don't explicitly state that.
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