Ambrose Evans-Pritchard: “We may now be an even more dangerous monetary world. The Fed is closer to policy exhaustion without having achieved anything. It has just two or three cuts left before it hits the floor, given that negative rates in the US are ruled out by the structure of the money market industry.”
“In fairness, the Powell Fed was damned if it did, and damned if it didn’t. The coronavirus amounts to an economic ‘sudden stop’ across the northern hemisphere, likely to hit regions making up 70% of global GDP by mid-March.”
“It is an exogenous shock akin to the outbreak of world war — a ‘once in 100 years catastrophic event’ in the words of Ray Dalio from the giant hedge fund Bridgewater — and it is colliding with global debt ratios at an all-time high of 322pc of GDP, and doing so at a vulnerable point in the business cycle.”
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