The “whiplash effect” that can blow up the Fed’s plans and bring down rates.
What is “The Whip Effect”? When an excessive drop in demand, read recession, following a period of supply shortages, leaves the warehouses of importers and traders incredibly full, thus launching a deflationary shock following an inflationary one. To explain in a simplified way: logistical problems lower the reserves in the warehouses more orders are made, … Read more