A member of the Federal Reserve's rate-setting committee, Raphael Bostic, further stoked fears of more super-sized rate hikes from the Fed by saying "everything is in play" for the meeting later this month.means a local 75-basis-point rise now "can't be ruled out" when the RBA meets again next month, according to AMP Capital's Shane Oliver, while it is Deutsche Bank's baseline forecast.
"We saw something like that in the early 1980s when the Fed was fighting inflation hard," Professor Obstfeld, who teaches economics at the University of California Berkeley, told the ABC's The Business program. "And so we got a very deep global recession which spilled over to emerging markets in the form of the debt crisis of the 1980s and I think there is a risk of something similar now."
"They have egg on their face from having been behind the curve, and there is a little bit of a sense of panic in the air," he said.
Since recession is the only known cure for stagflation....the Reserve banks fully intend to induce a recession and hope to get it over with.
And Labor still want free child care for families earning over $500000 a year!
“Maurice Obstfeld warns excessively fast rate rises could trigger a major economic downturn like seen in the 1980s”. Central Banks have proved pretty useless at controlling economies. RBA should manage Australia’s situation from an Australian perspective and not other countries
Marvellous. At some point, people will realise you can’t constantly have free money. And Govt’s need to realise you can’t keep on giving it out. Dear oh dear...
Blew it again RBA.
They mixed the 'cocktail' of low interest rates for far too long. Everyone partied hard and malinvested trillions in capital. Then covid came and instead of sobering up, they pulled out the crack pipes and the party didn't stop. Now the sun's up and the bill is due. 🥳
Anyone that though these record low rates would last forever deserves to lose their place.. This will get heaps worse. And it's not even bad yet.
We must thank President Biden for his strategy on preventing inflation from getting worse. Without his leadership the USA would of been caught in a deep hole of recession.
Look around the World. Pay close attention to what’s happening … Riots. Protests. ITALY NETHERLANDS MACEDONIA SRI LANKA ECUADOR PANAMA CHINA ISRAEL CANADA ARGENTINA CUBA ALBANIA AMERICA UK… We’re up next AUSTRALIA
The days of everyone wanting it and wanting it now was always going to end in pain.
When Trudeau Senior was at the helm, Canada's home loan interest rates hit 30%. Trudeau junior is far more destructive. People are about to find out just how much the free stuff really costs.
What do you think would happen when most of the world collectively prints trillions in a short period of time?
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