TYO - Don't Blame The Monetary Authorities
Monetary policy has passed the point of diminishing returns virtually everywhere in the world except the United States, and possibly China, which both have more room to run. Powell stated it correctly last week after the Fed lowered rates by an additional quarter a point. He said that monetary policy has its limitations and cannot alone change business sentiment/policy/spending, which has turned down, due to trade tensions/conflicts/tariffs. Thank heaven the consumer remains strong. Government actions, including fiscal and regulatory policies, are key ingredients in addition to trade policies that influence business and consumers too.
Don’t