- A cohort of traders is betting the hawkish monetary lurch on both sides of the Atlantic will prove a policy mistake down the road
The report adds:
- forcing central banks to cut rates to salvage economic growth
- one corner of the interest-rate market now suggests the Federal Reserve will be forced to reverse course in three years time
Bloomberg cite a Citi note:
This one is lost on me. Three years ago it was January 2019 and a lot has changed since then. In three years time perhaps there will be other changes of importance to influence policy settings. I'd be hesitant making predictions on what the Federal Reserve (and BoE) will have to do around January 2025. Best of luck to those making such projections.