This is too entertaining to be real, but it is…


Chinese President Xi Jinping took to the virtual Davos stage to address Fed Chairman Jerome Powell with this message: Please don’t lift interest rates.

“If major economies slam on the brakes or take a U-turn in their monetary policies, there would be serious negative spillovers. They would present challenges to global economic and financial stability, and developing countries would bear the brunt of it,” said Xi, according to a transcript of his remarks on Monday.

Of the major central banks, the Fed is expected to be the most aggressive, with financial markets now pricing in four rate hikes, and the U.S. central bank is concurrently expected to start reducing the size of its nearly $9 trillion balance sheet. Yields on the benchmark 10-year Treasury TMUBMUSD10Y, 1.884% on Tuesday reached the highest level since January 2020.

1 Like