Not only the Fed is committed to a path of easing. Other developed market central banks are expected to cut rates as well over the next 2 years. In the upper part of chart below, you can see the incredible amount of monetary stimuli that will be released if the implied rate cuts are fulfilled. Some of them have already started to ease rates but there is lot more to come. It’s remarkable that the Fed is the central bank that is expected to cut the most among the big ones, perhaps because it still has the highest official rates. In any event, central bansk tend to move in tandem and tend to coordinate their actions, since it’s a global economy. The big question is: if soft landing is expected, why is so much easing needed? Will those rate cuts bring inflation back?
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