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Opinion

Fed Pivot Isn’t an Investment Thesis

Fed Pivot Isn’t an Investment Thesis
The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., on June 14, 2022. Sarah Silbiger/Reuters
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Commentary

In a recent Bloomberg article, a group of economists voiced their fears that the Federal Reserve’s inflation fight may create an unnecessarily deep downturn. However, the Federal Reserve doesn’t create a downturn due to rate hikes; it creates the foundations for a crisis by unnecessarily lowering rates into negative territory and aggressively increasing its balance sheet.

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