I’m pretty confident inflation will hit 2% in 2025.We can take our foot off the brake if the base case holds.It’s logical to assume a recovery in consumption.Consumer recovery will take a bit longer.Structural undershoot of the 2% goal is not a risk now.Large economic deterioration is needed for bigger cuts.The biggest slowdown in wages is still ahead of us.Trade fragmentation will be bad for both the US and Europe.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
