by David Stockman, Lew Rockwell:
The Great Central Bank Pivot is now underway around the globe, but it’s not the one Wall Street has been praying for. Instead of another round of easing juice to brake the obvious fall in economic activity, central banks en masse are racing to goose interest rates by 75 or even 100 basis points at a clip in order to quash the inflation surge.
Just yesterday, for instance, the heretofore dovish Riksbank of Sweden raised its target rate by 100 basis points, shocking the market. Not that long ago, by contrast, the Swedish central bank appeared to be locking into zero interest rate (ZIRP) policy forever.