Higher Rates, Harder Landings: Fed, BoJ, and ECB Navigate a New Inflationary World

The global economy is settling into a new regime of structurally higher interest rates and persistent inflation, driven by oil shocks, AI-driven investment, and resilient demand. The Fed's recent 25-basis-point hike to combat sticky inflation has pushed mortgage rates to 6.95%, a 19-month high, while the Bank of Japan's dovish hike to 1.25% has left markets watching for currency intervention. Meanwhile, the PBOC held rates steady, signaling a different policy path...