3min chapter

The Macro Trading Floor cover image

Debt, Demographics & Deflation Ahead | Raoul Pal

The Macro Trading Floor

CHAPTER

Is the Fed Cutting Rates to 2% or 1% Right Now?

Inflation expectations were very low over the last 10 years. The wild card for the inflation expectation story is not actually the expectation, because expectations have been pretty anchored. What is clever about the buyback strategy or some change in the Basel III that allows money to get out of the reverse repo,. is you can keep raising rates, but you're actually adding some liquidity back into the system. It's a bit of an optical trick, right? But it actually works.

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