BOE and The Fed
- As long as inflation remains high or appears to be on the rise, the US economy could be in trouble by the third or fourth quarter of this year. The question now is what the Fed will do next. Is the Fed’s path going to be similar to that of the BOE?
- First, there was hesitancy on the part of the BOE. They appear to be squeezing the tightening cycle by painting a rather bleak picture of the UK economy. However, at the end of the day, this playbook may not be sufficient on its own.
- With rising inflationary pressures and a slowing economy, the Bank of England is attempting to strike a balance in combating the former without exacerbating the latter by tightening policy.
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