/biz/ - Business & Finance

>>51140334
>If he raises less than 75bps then equities will moon because everyone will know that he's just bluffing.

And that's good for the governments during elections.

The problem si that they really can't rise rates too much without serious systemic risks i mean the usa literally defaults if rates go above 12% but that's assuming no recession fucks with tax gains collected by the us government.

So if they fuck this up and cause a recession causing tax collection to collapse and on top of that there is still inflation they would literally put burgerland at default risk.

This can be avoided by high inflation since dxy will still go higher anyway due to europe going to shit.

But still it's a risky path.