- We are in a period of heightened tension and alertness
I'm not sure if he can be thankful for that as they still have an inflation problem to take care of. And as mentioned before, the optics sure don't look good for Bailey & co. throughout the tightening cycle. It does seem like that they have been:
- Too late in tightening policy aggressively when inflation was already running away
- Even in tightening, they appear to be doing too little to address inflation
- Now that they want to back down, they haven't really solved anything with their rate hikes
