Why the Federal Reserve and the ECB have a tough job ahead of them
Let us make the realistic assumption that the Federal Reserve and the ECB want to bring inflation back to 2% in 2024. This objective will be difficult to achieve, since : The shortfall in fossil fuel supply relative to demand will continue to drive up oil, natural gas and coal prices; A boost to purchasing power through dissaving and fiscal deficits is inflationary; The very significant hiring difficulties of companies and the presence of many job vacancies will lead to continued job creation even if the economy slows down.
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Natixis
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.