“The more tightening that people feel motivated to do, the more uncertainty around these lags and the greater risk to more extreme economic outlooks,” Ivascyn told the FT, noting that when rates have risen in the past, a lag of five or six quarters for the impact to be felt has been “the norm”.
The market is “too confident in the quality of central bank decisions”, he told the FT.
Source: Economy - investing.com
