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Flash Report June 2019

Global growth fears were temporarily assuaged by the Fed’s dovish suggestion that rate cuts are on the horizon. The Fed’s comments were consistent with those of the ECB and other central banks. Underlying this dialogue, however, is an implicit acknowledgement of the asymmetric downside risks associated with near zero interest rates, extended central bank balance sheets, little to no reflation after a decade of earnest effort, and extraordinary levels of public sector and private debt. On the bright side, easing should push asset prices up.

WRITTEN BY | July 1, 2019

 

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