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Central banks worldwide have made similar moves. Initially, policymakers expressed a reluctance to cut rates, but many have begun to adopt a more aggressive stance, often cutting rates in rapid succession as downturns in global economic conditions became apparent. This dynamic illustrates that the dollar's ascent is not merely a reflection of U.S. monetary policy.
The Premise of Goldilocks and Global Surprises
At the start of the year, many economists were optimistic about various economies, notably in China and Europe, expecting robust recoveries following substantial stimulus measures. The International Monetary Fund (IMF) projected slight growth declines in advanced economies, with hopes of a gentle, soft landing as monetary policies moderated.