David Dodge joins BNN Bloomberg and says it is clear central banks need to get interest rates up to neutral in North America and signal to the world they are no longer providing the accommodations they did during the pandemic.
He says the rate increase by the U.S. Federal Reserve on June 15 is sensible, although a bit late. "The objective of the Fed at the moment should be, and I think it is, to move quickly to something that is at least neutral, 2.75 or 3, something like that, and then wait and see how much effect that has." David adds that how global events will impact domestic inflation remains a great uncertainty.