Will the Fed hike and print at the same time?

Tuesday, 15 March 2022

It may have to. As noted last week, global financial conditions are tightening at spectacular speed under pressure on all fronts from Ukraine sanctions, the Fed and q rising DXY:

This is hammering peripheral global credit spreads and it’s working its way back to the centre as well::

Yet this is all happening before the Fed has even hiked once while US inflation is raging and US financial conditions remain obscenely easy:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.