Expert James Aitken warns that national security is the macro variable that will influence returns in the long run. And interest rates are going up.
While all the attention last week was on the Reserve Bank, global macro expert James Aitken says a far more profound moment in central banking took place earlier in the week in New York City.speech to the Council of Foreign Relations
Western governments have accepted and are preparing for this new reality. So central banks are going to have to consider their strategic interests in setting policy – independence will be replaced by interdependence. “Even though these policies may have economic impacts, they are driven by straightforward national security considerations,” Yellen said.
James Aitken is an Australian . His formative period was working in AIG Financial Group, the ill-fated unit at the heart of the 2008 global financial crisis. The global economy is now well into the post-pandemic period. That health crisis marked a clear shift in emphasis away from monetary policy being the only game in town toward the increased influence of fiscal policy, Aitken says.
about the consumer being out of control captured just how long and variable the lags of monetary policy are.Aitken believes the Reserve Bank isn’t yet done increasing interest rates. Labour markets, he says, are likely to remain tight.