11-04-2024, 06:43 AM
11-04-2024, 06:46 AM
This narrative does not make sense.
Oil price is rising
due to high interest ratebmany developers did not build new housing. Because housing supply shrink now rentals are rising fast.
So how can FED even cut rates when major inflation components are still rising.
We are not talking about delay of rate cuts but suspension of rate cuts until major problems with inflation can be solved.
The notion that US economy cannot get into a problem trap is wrong.
Just look at China a few yrs ago it was the darling of investors saying it us unstoppable now it is trapped in problems
Same will happen to US.
Oil price is rising
due to high interest ratebmany developers did not build new housing. Because housing supply shrink now rentals are rising fast.
So how can FED even cut rates when major inflation components are still rising.
We are not talking about delay of rate cuts but suspension of rate cuts until major problems with inflation can be solved.
The notion that US economy cannot get into a problem trap is wrong.
Just look at China a few yrs ago it was the darling of investors saying it us unstoppable now it is trapped in problems
Same will happen to US.