![]() But elevated inflation isn't necessarily a hindrance to the economy, Knapp said, pointing to 3%-4% inflation in the early 90s, years when the economy expanded and benefited from a huge boom in business spending. Warren Ellis and Darick Robertson’s masterwork of gonzo science fiction and political soothsaying is finally available in a majestic Absolute Edition just as Nostradamus predicted As vital and engaging today as when it first hit the stands, the weaponized viral meme that is. Some economists have argued that the Fed needs to press forward with rate hikes, given that inflation is still well-above the Fed's target, clocking in at 5% in March. The market is telling you, in terms of forward yield curves, that they expect the Fed to make a mistake," Knapp said, pointing to bond market futures pricing in a likely recession this year. ![]() "If credit drops that much, we've got a real, huge economic problem on our hands. But high rates risk overtightening the economy into a recession – and the risk of a downturn has been amplified by the tightening of credit conditions stemming banking turmoil. That reflects a major tightening in financial conditions, he said, calling the Fed's expected 25 basis-point rate hike this week "ridiculous."Ĭentral bankers have raised interest rates aggressively in the past year to bring down inflation. ![]() ![]() Bank deposits could fall by 11% in total, Knapp said, citing an estimate from Cato Institute's Mark Calabria. ![]()
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