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UBS On-Air: Market Moves

UBS On-Air: Paul Donovan Daily Audio 'Taking time means tightening'

03 Jul 2024

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Federal Reserve Chair Powell said yesterday that the strength of the US economy and labor market meant the Fed could take its time in cutting rates. This is a rather risky point of view. US inflation has collapsed more than eight percentage points, and the harmonized measure is below 2%. Taking time means tightening policy further. Can the US economy withstand more tightening?

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