Central bank tightening during a global growth slowdown as the curve flattens

This is the links post. But let me say something about monetary policy first. It's not just the Federal Reserve that will be in tightening mode by year-end. Markets expect all the major central banks to join the US central bank in removing accommodation. And so 2018 will be the first year that we see a coordinated tightening campaign in more than a decade.
The inflation data are becoming less benignNow, the Fed is the only central bank that has embarked on this path so far. And we got two pieces of data regarding the Fed's reaction function yesterday. First was the consumer price index. This measure of consumer inflation is not the Fed's preferred measure of inflation because it includes imported inflation. And the Fed is trying to discern how its policies are impacting the US domestically...


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