More on war and interest rates

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My own view is that this is wrong. I do not think that the Fed is done. It needs to short-circuit the stock market reflation for starters. Wage inflation is still strong and labour hoarding likely. 

But there is a deflation tsunami approaching from China, commods and the reverse bullwhip effect as inventories reverse. 

Whether inflation is a structural issue after that is an open question but the cycle takes precedence.

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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.