Global race to Zero

The race to zero is ramping up globally.

Wednesday India’s central bank cut it prime lending rate 25bps. It is the second rate cut this year for India.

Year-to-date 15 countries including China on Saturday to slash their rates to stave off deflation and attempt to spur economic growth.

Into this fray is a Federal Reserve jawboning that it will raise rates, which will strengthen the US dollar even further.

As I have said since last year, there will be no economic reason to raise rates off of zero this year in the US. A political move cannot be taken off the table.

A 25bps move would further cripple multinationals companies growth as well as US equities.

It’s a race to zero rates, however we are already at the finish line, with no place to go.

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