The Fed Needs to Introduce Two-Sided Risk to Its Next Move to Slay Inflation
In order to bring inflation back down to 2%, the Fed has to be as willing to raise rates as they are to cut them. For now, the asymmetry of its policy toward an easing bias is self-defeating.
I have been saying for several weeks now that I believe risk assets will stop rising when the odds of the Fed's next move comes more into balance between cutting and hiking. There simply needs to be …
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