“from whatever it takes to whatever it breaks”
Investors and economists think policymakers will struggle to avoid imposing pain, from rising unemployment to economic stagnation.
Whatever it takes?
The ECB has a challenge of a more existential kind.
FT 17 June 2022
https://www.ft.com/content/6532b026-e007-441b-b9dd-ffd5619504d7
If history is any guide, the selloff might still be in its early stages
The S&P 500 is trading at 15,4 times its next 12 months of expected earnings, according to FactSet, just a hair below its 15-year average of 15,7.
David Kelly, chief global strategist at J.P. Morgan Asset Management, said “I wouldn’t be surprised if within a year, we’re having a meeting where the Fed is considering cutting rates,”
WSJ 20 juni 2022
ECB sought to stave off a resurgent sovereign-debt crisis with the promise of a new tool
Bloomberg 15 June 2022
https://englundmacro.blogspot.com/2022/06/ecb-sought-to-stave-off-resurgent.html
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