• Asks where we are in the process of repricing growth, after pricing in energy shock and starting to price it into interest rates.
    Speaker1
  • Jim Bianco
    We are repricing growth lower, but interest rates should approximate nominal GDP (growth+inflation). The short end of the yield curve signals we'll get more inflation than reduction in growth, so nominal GDP goes up, meaning interest rates should go higher and central banks might need to hike.
  • Jim Bianco
    We have a deficit of oil requiring 10M barrels less consumption. Cutting taxes and rates to subsidize buying at higher prices will just drive prices up until demand is destroyed.
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