Stagflation, how should the Federal Reserve avoid it?
Stagflation—a mix of high inflation, stagnant growth, and rising unemployment—is especially tough for policymakers because the usual tools for fighting inflation can worsen unemployment, and tools for boosting growth can worsen inflation. The Federal Reserve has limited tools (mainly monetary policy), but here are the main options and trade-offs it faces: 1. Re-anchor Inflation […]
Why are European Car makers under pressure from Hedge funds?
Why Are Hedge Funds Shorting European Automakers? 1. Tariffs Crushing Margins and Sales Initially set at 27.5%, then cut to 15%, U.S. tariffs on European cars significantly raise costs for exporters like Stellantis, Volkswagen, and Volvo Cars. For example, Stellantis reported a €300 million hit, while Volkswagen lost €1.3 billion due to trade […]