So rate cuts makes it cheaper for consumers to borrow short term debt like credit cards whereas QT affects bond yields and make it more expensive for companies to borrow long term debt. Does anyone not see why there could be issues with this approach? Stoke inflation exactly where you don't want it and cause capex problems exactly where you don't want it. And this is supposed to be bullish for USD?
Posted by v4bj
1 Comment
It certainly seems problematic to me. Bigger question right now is if he’ll be able to do that with the labour market where it seems to be trending. He might be arriving pretty much mid crisis.