Though inflation is trending downward globally, major central banks haven’t relaxed their restrictive stances. Their price stability mandates and their credibility are at stake. They may diverge in their approaches, but most developed market central banks have shifted to a new monetary policy mantra: After more than a decade of “lower for longer,” it’s now “restrictive for longer.” Interest rates may remain uncomfortably high until inflation data is comfortably trending toward target (and central banks are acutely dependent on the data). Investors may be coming to accept this outlook, given market indicators such as ... (full story)