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Daniel Lacalle, chief economist and investment manager at Tressis Gestion, compares central banks raising rates during an external energy shock to raising taxes in an attempt to reduce rainfall.
He states that current conditions in both the labor market and various components of the consumer price index do not justify policy tightening or suggest that the economy is overheated. His viewpoint cites information from JP Morgan and the Bureau of Labor Statistics.
Lacalle has previously argued that public spending is a key driver of inflation, not central banks. He also recently noted that the U.S. dollar index climbed above 100 as global demand for U.S. assets reached a record high. His recent commentary continues a critical stance on conventional monetary policy responses.