The Song Remains the Same with Alfonso Peccatiello of The Macro Compass
RiskReversal Pod
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The Importance of Risk-Free Rates
If we get the proper recession, as I expect, Fed funds are going to zero. And why? Because people confuse trends with cycles. So a long-term trend might well be that inflation has become entrenched. But it will take a decade for that trend to play out. An average recession brings inflation down by 7% points,. I mean, the recession is the perfect cure for inflation. It's a very painful and expensive one, but it works. The dollar, everybody to be willing to sell the dollar now because Europe is better than the U.S.
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