The Wild Bunch

Fed Chair Powell has managed to subdue inflation without triggering a recession but isn’t out of the woods yet. While we await Wednesday to see what he does and says next, we examine past decades’ scenarios that he must have in mind. … In Europe, it’s unlikely that the ECB will do much monetarily to revive lackluster economic growth anytime soon; the focus is on fiscal measures. … In China, equity investors cheered the PBOC’s decision to cut banks’ reserve rate, but we view the move as a lame attempt to revive GDP growth, with more easing unlikely to follow. … In Japan, the BOJ is preparing to unwind its extreme monetary easing.