The Fed, no doubt in concert with the CBs, has been playing whack-a-mole for decades now as they've been forced to deal with the 'too big to fail' modern-day robber barons, and the Jenga stack they've created has begun to look like it could topple at any moment. But's that OK with them since the rich got richer and the huddled masses were left behind to deal with their machinations. What a total shitshow these 'financial geniuses' have dropped in the world's lap.
Let the roller coaster continue
The IMF delivered a warning signal yesterday as it cut its year-ahead world GDP forecast for the third time this year, from 2.9% to 2.7%. Interestingly, the theme of excessive tightening and the damage to the world’s economy has taken a more central role in the IMF report. It seems, however, quite far from the rhetoric of the Federal Reserve and most other central banks, which continue to point to the need to fight inflation while accepting a degree of economic damage. This is the narrative that is keeping the general trend in risk assets bearish and the dollar supported, and we do not expect it to change until ... (full story)