The Fed is wrong again. The slap to the results and to the pockets is going to be brutal. P.Gil
The Fed is going to be wrong. You are already wrong. It makes no sense to keep raising interest rates. But when you think that you are going to grow at 1% this year and at 1-odd next year and you have started the fight against inflation so late, well, I understand that it encourages you to continue rising. But they’ve been consistently wrong in recent years, so the reasonable assumption is that they’re going to be wrong again: they think there’s not going to be a recession and they’re going to cause it. People do not quite understand that they are going to have to reset their debt. They have not yet impacted the economy with rate hikes. The slap to the income statements and pockets is going to be brutal. So they have not yet seen the economic damage that interest rate hikes are going to cause. It is unrealistic to think that the economic damage we are going to have is what the central banks are predicting.
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