An opinion piece in Monday's Financial Times on the US Federal Reserve
- two weeks ago made a mysterious U-turn
- signalled that its hiking cycle was over for now
Not only 'mysterious', but a 'perplexing' decision
- the various measures of US economic performance are almost universally strong
- The US economy is in rude health - recession fears were, and are, overdone
Says the move was in response to:
- lingering slack in the labour market
- a capitulation to markets
And, the risks are significant
- US corporate debt has reached record highs
- there remains an inescapable fear that perhaps the Fed's short-term support for an economy that was already in good health opens the door to a surge in volatility later in the year
Here is the link if you would like more (there is plenty more). FT is gated.
