“Daniel, I would agree with you that London is the canary.
Why do you think that our Fed will pause since our deficit is so much bigger than the Brits’?”
I think the Fed feels that the economy is going under. I don’t think we’ll have an inflation problem, I think we’ll have a recession problem. In every past cycle, the Fed stopped a few months BEFORE the CPI peaked. The recession hit soon afterwards. It is often said that they drive by looking in the rearview mirror, but I would give them more credit. They have a decent idea of what’s coming down the pike.
