PRESENTING: 'The Central Bank Hall of Shame'
At this point, it seems like the data is favorable enough to justify the Federal Reserve hiking interest rates for the first time since June 2006.
A rate hike would put an end to the so-called zero-interest-rate policy (ZIRP), which the Fed put into place in December 2008 in its effort to stimulate growth and stoke inflation during the darkest hours of the global financial crisis.
Of course, the concern is that the Fed may actually be hiking rates too soon. Indeed, many of its central bank peers around the world have hiked rates in this post-financial-crisis era, only to be forced to cut again within months because their local economies couldn't handle it.
During a presentation on Thursday, Deutsche Bank's Chief International Economist Torsten Slok shared this chart, which he informally called, "the central bank hall of shame."
It picks on eight countries, whose central banks hike rates, only to cut rates once again soon after.
"It's a very important reminder that the rest of the world has not been very successful with this experiment," he said.
The Fed surely doesn't want to get inducted into this unfortunate list. The group's Federal Open Market Committee convenes on December 15 and 16 to decide whether or not they'll pull the trigger.
Deutsche Bank
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas