by Chris Black
The inflation is here to stay, whether you raise the rates or not.
The only reason you would raise rates to try to do something with inflation is if you were purposefully trying to collapse the economy.
It doesn’t make any sense otherwise.
If the government is backing down on rate hikes, it means cooler heads have prevailed, and they realize they need a better economy for the wars they are planning.
This would mean that predictions of collapse this year are wrong, and everyone can go back to investing.
Of course, they could change their plans at any time, so who the hell even knows.
The US dollar index, which measures the greenback against six other major currencies, plunged to near one-month lows on Monday, following a Goldman Sachs forecast that Washington will likely halt rate hikes. According to trading data, the index slid 0.6% to 103.9 by 09:00 GMT.
Goldman’s previous forecast predicted a 25-basis-point hike at the next Fed meeting in March. The change in expectations came after US regulators on Sunday announced a new emergency program aimed at protecting bank clients, following the failures of Silicon Valley Bank and Signature Bank last week.
According to a joint statement from US Treasury, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), they will make a “systemic risk exception” to allow both insured and uninsured depositors of the failed banks to regain full access to their money. The Fed also separately announced it would make additional funding available for banks in cases of emergency, through a new Bank Term Funding Program.
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