For a while, American exceptionalism was the expectation, leading to stresses globally. With the Fed’s recent rate cut, the hope is a smoother path for the world economy.
There was an expectation that the resilience of the U.S. economy would lead to higher rates for longer. That was creating a lot of stresses and strains for the rest of the world.
If the Fed’s rate cut can ensure a soft landing for the U.S., it’s good news globally, as it eases financial conditions and reduces currency pressures.
While central banks are lowering rates as inflation slows, there’s caution to avoid reigniting inflationary pressures, evidenced by mixed actions from different central banks.
Collection
[
|
...
]