Amid fears of a looming recession after an indicator flashed a warning signal, one strategist told CNBC that the inverted yield curve 'predicts absolutely nothing.'
"If you reverse those elements, then the yield curve will respond very quickly," the strategist said, adding that, to him, "recession equals policy errors."may not have enough fuel in their tanks to make their policy count, Shvets said that notion was "nonsense."
"Would you rather have a deep recession? Would you rather have closures of factories? Would you rather have banks going down and people losing their deposits?" he asked. "If the answer you give me is 'no,' then there is no choice but to take various forms of drugs." While fiscal responsibility and structural reforms are good ideas in theory, they almost never work in practice because "people are reluctant to embrace" them, Shvets added.
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