The Fed's New Howkish Policy on Inflation Could Affect Growth

The european central bank raised its deposit rate by half a % last week, in a more aggressive move than widy expected. However, both the bank of japan and the people's bank of china are maintaining a much more devilish policy. We expect them to continue to reduce their balance sheet by up to 95 billion dollars per month from september 22 on. It is now clear that there is only a narrow economic path that will keep both the economy growing and allow for gradual downshift and inflation at a pace that is acceptable to the federal reserve. For investors, despite this uncertainty and significant losses in both stock and bond market so far this year, this can be a