The Australian Financial Review carries an extended piece today on an interview with Michael Kushma, global head of fixed interest at Morgan Stanley Investment Management.
In (very brief):
- "Our working assumption is that the Fed will do everything in its power to get inflation up. And if it overshoots to the upside, all the better"
- Says there is "an argument for cutting interest rates because inflationary expectations are too low"
- "big question of whether the US economy is powerful enough to withstand the headwinds coming from the global economy"
On currencies he says the pressure for central banks to wage a 'currency war' is easing now that the ECB is subsidizing banks that lend money directly to business and housegolds - direct stimulus to credit markets.
There is a lot more at the link, above
