Hedge Fund CIO: The World Is Racing To A New Monetary Regime With An Unknown Finish Line

• Hedge Fund CIO: The World Is Racing To A New Monetary Regime With An Unknown Finish Line
  by Tyler Durden, https://www.zerohedge.com/
  Excepted from the latest weekend note by Marcel Kasumovich, Head or Research at One River Asset Management. Full note available to pro subscribers.
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  There is no ex-ante limit to that Transmission Protection Instrument programme,” said ECB President Lagarde, following her predecessor’s playbook, “[the] ECB determines in its own discretion not being hostage to anyone.”  The market disagreed, widening peripheral spreads.
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  The tools that came from “whatever it takes” have been made redundant by politics.  Markets are skeptical version-two can be effective. “There’s ample room to hike in 0.25 and 0.50 [percentage point] levels to whatever rate we think, we consider reasonable,” Austria’s central bank Governor Holzmann emphasized in speaking of future meetings, a reminder of the ECBs North-South balancing act. “We do have the risk of a slowdown in the economy,” said the ECB Chief economist ahead of the July rate hike.
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