'Central banks [are] pushing policy rates up to levels that damage economic activity,' BlackRock said.
by DAN WEIL
We are seeing a new regime “play out in persistent inflation and output volatility, in central banks pushing policy rates up to levels that damage economic activity, rising bond yields and ongoing pressure on risk assets”.
“Central bankers won’t ride to the rescue when growth slows in this new regime, contrary to what investors have come to expect. They are deliberately causing recessions by overtightening policy to try to rein in inflation. That makes recession foretold”.
“We see central banks eventually backing off from rate hikes [next year], as the economic damage becomes reality. We expect inflation to cool but stay persistently higher than central bank targets of 2%”.
“Job losses should be most concentrated in the technology and real estate sectors, which were among the strongest beneficiaries of the zero-rate environment.”
“By 2024, the U.S. economy may well be back on a path that looks much like that of the late 2010s -- slow growth, low inflation, moderate interest rates and strong corporate margins.”
Source: The Street
https://www.thestreet.com/investing/bla ... n%2BStocks
