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MNI PODCAST: FedSpeak - Looming Recession To Force Fed Pause

  • Joe LaVorgna, former chief economist of the White House Economic Council, thinks a fairly deep recession is in store that will convince the Fed it's time to pause rate hikes.
  • The Fed will not use rates to react to any flare ups in financial stability, however. potentially choosing instead to pause QT.
  • “A mini-pivot might mean the Fed opening up swap lines with other central banks as they’ve done before, and then possibly temporarily stopping QT until market conditions stabilize," said LaVorgna, chief economist at SMBC Nikko Securities America.

Listen to the podcast here.

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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