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"If a tree falls in the forest and no one is around to hear it, does it make a sound?" is an old philosophical thought experiment. There is a monetary policy equivalent right now: If high interest rates don't visibly slow the economy, are they doing anything to bring inflation down? Why it matters: It's unclear how much the Fed's high interest rate policy ...
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Inflation in advanced economies remained essentially stable for the third straight month, at around 2.7% yoy. The stickiness of advanced economy inflation so far this year has reduced the likelihood of rapid policy rate cuts by central banks in 2024, which could negatively impact growth rates in 2025 and 2026. Trends in advanced economies were mixed in Q1 – ...