Can the Fed afford to ease off the brake? The end of last week was a bit of a reality check for investors that were maybe getting a little carried away with the supposed “dovish pivot” from the Fed and turning a blind eye to the data and what central bank policymakers were saying. Perhaps the experience of the last 12 months can explain the latter but there’s no ignoring the data that we saw on Friday. The US economy is certainly not behaving like it’s in a recession; rather the labour market is so hot that the Fed may not be able to slow down as hoped. While the UK is preparing for a long period of stagflation, the ... (full story)