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Odd Lots cover image

Goldman's Jan Hatzius Believes the Hard Part Is Over

Odd Lots

NOTE

The Link Between Fed Rate Hikes and Disinflation: Explained

The Fed rate hikes are connected to disinflation because they slow down demand, which leads to job losses and price compression. However, this cycle of disinflation looks different because the economy grew more slowly due to the Fed tightening policy. The primary reason for the difference is that many people believe this time might be different, although there is always uncertainty in forecasting.

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