Part 6/11:
Throughout the debate, a key question arose: Are the fundamentals of the economy strong or not? The consensus among participants was that the underlying economic indicators remain robust, complicating the decision to cut interest rates. Dan pointed out that the economy is not struggling and has been relatively resilient, which raises concerns about stimulating it further.
Sean highlighted that aggressive interest rate cuts—especially to the lowest levels globally—could risk fueling inflation. He emphasized the importance of paying attention to trend lines rather than reacting solely to snapshot data, noting that the current inflation rate, once volatile components are excluded, shows signs of stabilization.