2024-03-20 07:30:00 ET
Summary
- Tight labour markets make reducing inflation a challenge for central banks.
- Goods inflation has collapsed, after demand switched to services after Covid, helped by near full employment.
- The bear inversion of the yield curve has prevailed in 2023, and into 2024 – often a signal of a recession, and in contrast to expectations of a gentler, soft (economic) landing.
By Sandrine Soubeyran, Director, Global Investment Research, FTSE Russell
What are the current challenges for central banks in trying to reduce inflation?
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For further details see:
Is It Time To Adapt To A Higher For Longer World?