The Australian Financial Review carries an extended piece today on an interview with Michael Kushma, global head of fixed interest at Morgan Stanley Investment Management.

It appears to be gated

In (very brief):

  • "Our working assumption is that the Fed will do everything in its power to get inflation up. And if it overshoots to the upside, all the better"
  • Says there is "an argument for cutting interest rates because inflationary expectations are too low"
  • "big question of whether the US economy is powerful enough to withstand the headwinds coming from the global economy"

On currencies he says the pressure for central banks to wage a 'currency war' is easing now that the ECB is subsidizing banks that lend money directly to business and housegolds - direct stimulus to credit markets.

There is a lot more at the link, above