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"Monetary policy now is as tight as it has ever been on the precipice of a recession," he said, barring an exception in 1984.
The problem is that the Fed badly misread how long high inflation would linger, prompting it to raise rates much more aggressively than needed.
In December, the core inflation print notched an annual 3.2% increase.
"In 2019 when they missed by a mere 30 basis points it was enough to get a 75-basis-point mid-cycle adjustment."
Persons:
—, Brevan Howard, Sully, Jason Cummins, Bloomberg's, Cummins, They've
Organizations:
Service, Business, Fed