Nordea sees it as slow and painful and not just in America.
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The global economy continues to lose momentum, but central banks will concentrate on their efforts to rein in inflation. Long yields will rebound to higher levels, while the EUR/USD has more downside left.
Many leading economic indicators have taken a beating, and recession worries have dented central bank expectations and driven long bond yields sharply lower. We argue that despite weakening global growth momentum, central banks continue to be preoccupied with much-too-high inflation and continue to tighten policy. In addition, we believe the US economy is much stronger than many seem to think.
