#QT is the equivalent to 4 fractional #interestrate hikes and liquidity destruction. As #inflation really picks up, #QE will not be a viable option. The equity markets could be sacrificed.
Chart via @crushthemarket pic.twitter.com/QidgKSzmUX
— OW (@OccupyWisdom) May 22, 2018
See also Inflation Alert! St. Louis Fed’s James Bullard backs two more hikes. Bullard would have central bank push interest rates up to 5.5%-5.75% range
Even Emerging-Markets Bull Mark Mobius Sees More Pain Ahead
That’s creating fertile ground for stock pickers, he says
India, China offer ‘incredible opportunities’, Mobius says
See also Fast QT, Fewer Rate Hikes? Bank of Canada Has Shed Nearly Half of Pandemic QE Assets. And QT Continues Despite “Pause” in Rate Hikes
Euro Zone Economy Slowdown Sharper Than Expected in May
Euro zone economic growth slowed much more sharply than expected this month, a business survey showed, which along with weaker inflation suggests a stiffer policy challenge for the European Central Bank ahead.