Opinion
Rate cuts herald risky new regime
Financial markets have entered a dangerous new economic environment defined by unusually elevated uncertainty after the US Federal Reserve’s pivot this week.
Christopher JoyeColumnistWe have entered into a new regime for global financial markets, punctuated by the world’s most important central bank boldly slashing its cash rate by 50 basis points, which has pushed the S&P 500 Index to a fresh record high.
Are we moving back to the old “new normal” of lower-for-longer, or is this just a reprieve in a much more elongated battle against sticky inflation fuelled by persistent political pork-barrelling?
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